Abstract
Extractive reserves in the Brazilian Amazon are one of the best-known examples of protected areas specifically designed to be inhabited by humans. The extractive reserve model has been criticized for its dependence on rubber tapping, which is no longer economically competitive. The state of Acre addressed this issue in 1999 by establishing a subsidy for rubber, designed to improve the quality of life of rubber tappers and simultaneously conserve forest. The subsidy is potentially a self-targeting and self-enforcing conservation mechanism, given that rubber production in the Amazon requires intact native forest. However, evidence on implementation of the subsidy through 2002 showed that its distribution had been fairly concentrated and correlated with ownership and sale of cattle. This raises some concerns about the use of such indirect mechanisms. The ultimate success or failure of the rubber program will depend on whether it provides a platform for more sustainable economic strategies and policies.
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