Abstract
Agricultural activities are considered the main cause of deforestation in the Brazilian Amazon rainforest. Command and control operations of the Brazilian government, fines and monitoring of illegal activities are institutional mechanisms to reduce deforestation in the region, mainly supervising the agricultural activities. The objective of this study is to analyze the effects of agricultural activities on deforestation in the 21 st century, considering the role of government and enforcement to reduce deforestation rates in priority municipalities in the Amazon. Using panel data analysis with 335 municipalities of Mato Grosso, Para, and Rondonia, including high-priority municipalities to combat deforestation, we show that cattle ranching remains the leading cause of deforestation in the Amazon rainforest, while soybean cultivation and others temporary crops do not yet represent a major threat. In addition, it is observed that enforcement operations produce positive effects in reducing deforestation, combating activities not conforming to the legislation and sustainability standards. Although this institutional mechanism of enforcement is reaching its limits, slowing the reduction of deforestation rates in recent years.
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