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.

Highlights

  • The Amazon, the largest forest area on the planet, covers more than 5 million square kilometers over nine Brazilian states

  • The purpose of this study is to investigate the relationship between deforestation and the expansion of agricultural activities in the Amazon in the 21st century, considering the effect of public policies and enforcement to combat deforestation on compliance with legislation

  • The objective of this study was to investigate the relationship between deforestation in the Amazon and the expansion of agricultural activities during the 21st century, based on the hypothesis that the government could take advantage of command and control power to enforce laws and contain deforestation

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Summary

Introduction

The Amazon, the largest forest area on the planet, covers more than 5 million square kilometers over nine Brazilian states. Its size and importance are reflected in the conflict between the preservation of fauna and flora and the continuity of economic activities. One of the main challenges for countries in the Amazon region is to build a strategy reconciling productive activities and forest preservation. Contrasting to the current need for environmental preservation is the way in which the region was economically directed by the Brazilian government in the second half of the last century. The economic development of several Amazon municipalities was linked to deforestation and sequential development of agricultural activities. Among the reasons for deforestation were demographic pressures from other regions of the country, agricultural incentives based on low land prices and interest rates, and government investment and subsidies for agriculture (FEARNSIDE, 2005; KIRBY et al, 2006)

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