Research

Work In Progress

A Market for Deforestation? How Brazil's Conservation Policies Shape Forest Protection 

This study evaluates the impact of Brazil’s 2012 Forest Code on deforestation, focusing on the introduction of the Legal Reserves compensation mechanism. Legal Reserves are a cornerstone of Brazil’s forest legislation, requiring private landowners to maintain a percentage of their property as native vegetation. The reform created a market for native forests, enabling farmers to trade their preservation obligations. Under the new policy, landowners who exceed their legal deforestation limits can fulfil their preservation requirements by protecting equivalent areas offsite, while those with “extra” unused land can supply it to the market. Using a microeconomic model, we demonstrate that this compensation mechanism inadvertently increases deforestation. 

Connectivity in Remote Areas: Impact of an Internet Rollout in the Amazon Forest 

With Alipio Ferreira and Luiz Felipe Fontes