Slowing Amazon Deforestation through Public Policy and Interventions in Beef and Soy Supply Chains

Background:

The process of deforestation, involving the extensive removal of mature forest, witnessed a notable decline, plummeting from a 10-year average of 19,500 km2 up to 2005 to 5843 in 2013—a remarkable 70% reduction. This reduction is believed to have initiated a chain reaction of positive consequences, including a diminished risk of regional rainfall inhibition, fewer alterations in river discharge and sedimentation, and an upswing in biodiversity conservation.

Goals:

While numerous studies have delved into specific aspects of the decrease in deforestation within the Brazilian Amazon, the author's contribution involves a crucial and comprehensive evaluation of the entire spectrum of policy interventions and the effects on commodity markets.

Takeaway:

The ongoing trajectory of deforestation will hinge partly on sustained improvements in livestock productivity on already cleared lands. Additionally, future deforestation trends will be influenced by the ongoing perception of risks associated with deforestation practices.  The effectiveness of government measures, employing command-and-control strategies to penalize illegal deforesters and impose embargoes, as well as severing public agricultural credit from entire counties, remains precariously reliant on the political determination of the government, which may be waning in the face of an inert national economy.