Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/220333 
Year of Publication: 
2019
Series/Report no.: 
Discussion Paper No. 247
Publisher: 
Institute for Applied Economic Research (ipea), Brasília
Abstract: 
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 calibrate the model for the Brazilian economy, and show that it predicts a procyclical deforestation, and that a more stringent policy reduces the volatility of deforestation. Moreover, technological progress decreases the stock of forest, and it does so more intensely with a lenient environmental policy.
Subjects: 
deforestation
real business cycle
environmental policy
DSGE
JEL: 
E32
Q32
O13
Document Type: 
Working Paper

Files in This Item:
File
Size
2.79 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.