This paper investigates the apparent paradox of the mid 2000’s sharp reduction in the deforestation of the Brazilian Amazon that happened alongside fast growing commodity markets. Particular attention is given to the role played by PPCDAM, an environmental policy introduced by the federal...

This paper proposes an environmental DSGE model with deforestation of a tropical rain forest. The forest can be used to produce goods, but it also affects the well-being of the representative individual. Environmental policy is implemented with the taxation of the deforestation activity. We...

This paper investigates the apparent paradox of the mid 2000's sharp reduction in the deforestation of the Brazilian Amazon that happened alongside fast growing commodity markets. Particular attention is given to the role played by PPCDAM, an environmental policy introduced by the federal...

This paper proposes an environmental DSGE model with deforestation of a tropical rain forest. The forest can be used to produce goods, but it also affects the well-being of the representative individual. Environmental policy is implemented with the taxation of the deforestation activity. We...