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Biodiversity markets offer considerable promise but are accompanied by controversies. Here, we map the utilization of native species (NS) from Brazil's biodiversity across eleven industrial sectors: foodstuffs, beverages, textiles, clothing, leather, wood, pulp and paper, biofuels, pharmochemicals, rubber and furniture. We show that there exists a diverse range of NS use in industrial products (48%) and activities (73%). These economic activities represent potential annual exports of approximately USD $50 billion. However, we found that only 1% of the potential business, USD $500 million of annual exports, is consolidated and can be traced to such products. We show that biodiversity markets and larger annual revenues locate in municipalities away from places in which biodiversity products originate. Therefore, the biodiversity business in Brazil remains largely untapped. This prompts a critical examination of the role of biodiversity within the Brazilian industry and its alignment with the Brazilian Biodiversity Law and the Nagoya Protocol. Our study is a pioneering effort that provides strategic recommendations. We suggest that the responsibility for sustainable NS utilization predominantly falls on sectors dominated by major corporations, most notably pharmochemicals and biofuels. These industry sectors possess the potential to lead the transition towards responsible and sustainable biodiversity practices within Brazil. [ABSTRACT FROM AUTHOR]

This paper analyses the potential implications of the proposed European Union Deforestation Regulation (EUDR) and the recently adopted United Kingdom (UK) legislation on deforestation-free supply chains (henceforth 'the legislation') for different stakeholders in Brazil. These regulations intend to address global commodity-driven deforestation and forest degradation by ensuring that targeted commodities and products placed on (or exported from) markets are of minimal risk of being associated with - in the EU - deforestation and forest degradation or - in the UK - illegal deforestation. The paper examines potential compliance readiness in cattle, cocoa, coffee, palm oil, soybean and tropical timber supply chains in Brazil, indicating specific challenges that may arise. Through the construction of a "Compliance Likelihood Index", our research provides comparable indications to policymakers on sectors and stakeholders that may need stronger support to meet the requirements, in order to maintain Brazil's access to EU and UK markets. The paper indicates that coffee is the sector with the highest level of incentivization and smallest hurdles for compliance, while the cattle sector may face stronger challenges to rapidly adjust its production system towards a deforestation-free value chain and prove compliance. Results of our analysis also highlight the need for collaboration between the EU/UK and Brazil in order to promote alignment between domestic and demand-side legislations so that they are mutually reinforcing. Results of this exercise, which has a focus on the producer-country view of demand-side legislation, will contribute to discussions on the merits of different approaches to strengthen the governance of deforestation-risk commodity trade. [Display omitted] • Brazil's coffee sector may currently have the greatest likelihood of ready compliance. • Cattle may be the sector to which the regulations may pose the greatest challenges. • The EU and UK should focus on providing financial means and technical assistance for smallholders. • The EU and UK legislation will need to be accompanied by domestic policies and regulations in Brazil. [ABSTRACT FROM AUTHOR]

This paper assesses the effects of public policies on the occurrence of natural disasters related to extreme rainfall. By using a unique and geolocated database on natural disasters in the state of Rio de Janeiro, Brazil, I test whether variables related to public policies - e.g. forest cover and urban infrastructure - affect the occurrence of natural disasters, conditional on the existence of extreme rainfall. Results point to a significant role for public policies in order to mitigate effects of extreme weather events. More specifically, results point to an important role for urban infrastructure, as proper sewage and waste collection, and forest cover in reducing the impacts of extreme rainfall. Moreover, I discuss how these heterogeneous effects have distributional consequences and can be linked to the Environmental Justice literature. Finally, this paper reinforces the idea that adaptation policies to disasters are essential in reducing local vulnerabilities and can yield distributional and fiscal benefits. [ABSTRACT FROM AUTHOR]

Several studies have compared the profitability of organic and conventional producers, but present very conflicting results. Although in the majority of these papers selection bias due to observables is accounted for, the possibility of selection based on unobservables has been largely overlooked. In this paper, we compare these two types of producers using a large and unique data of about 4.2 million family farmers in Brazil. Standard propensity score matching techniques are used together with the procedure recently developed by Oster (forthcoming) to address concerns about omitted variables. Our results confirm the working hypothesis that organic producer's profits are lower than conventional ones. [ABSTRACT FROM AUTHOR]

During almost 20 years of political debate on the nature of Payments for Ecosystem Services (PES), these schemes have been characterized mostly as a non-market approach, even though attempts to transform them into market instruments has persistently recurred in these debates. One notable example is the materialization of Reducing Emissions from Deforestation and Forest Degradation (REDD+) in Brazil, where a sustainable development discourse dominates national forest governance at the expense of a carbon commodification discourse. This research paper adopts a Foucauldian approach to plot the epistemological foundations of the market logics that still influence REDD+ institutionalization in Brazil to a large extent and thereby reproduce what we define as a ruptured dependence on nature. More specifically, we recognize ruptured dependence in the three building blocks of market instruments, namely singularization, monetary valuation and appropriation. Our analysis shows that REDD+ institutions have retained the singularization and monetary valuation of emission reductions, even though the appropriation processes have rejected the possibility of exchange and instead emphasized the national ownership of emission reductions. However, appropriation remains a highly politicized process that is sensitive to criticism and open to calls for alternative approaches that are closer to ruptured dependence. [ABSTRACT FROM AUTHOR]

Abstract Reducing emissions from deforestation and forest degradation (REDD+) is generally believed to be a cost-effective mitigation strategy against climate change. Some suggest, however, that costs of REDD+ are underestimated because many studies either exclude or undervalue transaction costs. A major challenge in this field of research is the absence of a common framework and methodology for assessing such costs. This paper uses the notion of governance structures to suggest a generic definition and methodology for measuring transaction costs. The methodology is subsequently used in an analysis of transaction costs for REDD+ pilots in RDS Rio Negro, Brazil and Kilosa, Tanzania. Results indicate higher unit costs – costs per ton of reduced CO 2 – of establishing the REDD+ governance structures in Kilosa, while unit costs of using those structures are higher in RDS Rio Negro. The results also show that while REDD+ was originally conceived as a market i.e., a direct trade between buyers and sellers, it could also take on a non-market governance structure or a mixture of market and non-market elements. These different forms of governance structures have implications for transaction costs. [ABSTRACT FROM AUTHOR]

In Brazil, the Cadastro Ambiental Rural (CAR) is currently being implemented. This policy aims to geo-reference all properties and promote monitoring of, and compliance with, natural vegetation conservation requirements. Scholarly efforts and policy attention have so far concentrated on possible environmental impacts hereof, while the attention devoted to how the CAR might affect farmers' livelihoods has been limited. In this paper, we evaluate potential livelihood impacts of the CAR and programs that facilitate CAR registration. We do so by developing a conceptual framework and using evidence from semi-structured interviews with key stakeholders including farmers, governments, and funding agencies. We find that while the CAR and programs facilitating CAR do not have explicit livelihood impact goals, they nonetheless affect livelihoods, both positively and negatively, depending on the initial amount of natural vegetation on farmers' properties, farmers' access to credit and infrastructure, and changing market conditions. We argue that environmental interventions and policies need to consider potential livelihood impacts, especially if the policy intervention area has high poverty rates. [ABSTRACT FROM AUTHOR]

While sustainability standards promise better labor and environmental conditions, changes in actual practice occur inconsistently. Existing literature has explained this mainly through focusing on structures and mechanisms that originate from outside producers' organizations. This paper instead examines the intraorganizational process by which rules turn into practices on the ground. It offers an inside-out approach that draws on data from an eight-month participant observation study of certified agricultural commodity producers in Brazil. The key finding of this paper is that rules get turned into practices through discovering and cultivating a practice ecosystem in which certified producers in the Global South learn to implement new practices through a self-guided, two-step discovery process. First, they must discover how to build and integrate the elements of a practice; second, they must discover how to support the internalization of this practice. Further, adjacent practices—those alongside the ones that need to be integrated—are pivotal in determing whether producers succeed in building new practices. This paper contributes to the literature on sustainable commodity governance and to organizational theories of practice adaptation. It shows that sustainable commodity governance depends not only on external structures and mechanisms, but also, equally importantly, on the internal organizational mechanisms for new practices to take hold. [ABSTRACT FROM AUTHOR]

This paper estimates the Genuine Progress Indicator (GPI) for Brazil from 1970 to 2010 as an alternative indicator to the Gross Domestic Product (GDP). After a growing disparity between these two indicators in the 1980s, when Brazil's per capita GPI featured a 35% decline, there was a relative catch-up in per capita GPI, but not one sufficiently strong enough to reduce the historical GPI–GDP gap. The recent trend of rapidly increasing environmental and social costs, along with the decline in unpaid labour and infrastructure services, poses concerns about the sustainability of an increasing GPI for Brazil into the future. Policies aimed at reducing environmental costs are necessary if Brazil is to enjoy a sustainable pattern of non-declining economic welfare. Brazil must pursue a higher rate of productivity in material and energy consumption in order to keep environmental pressures to a minimum level. [ABSTRACT FROM AUTHOR]

Through its NDC, Brazil pledged to reduce its GHG emissions by 43% below 2005 levels in 2030, respectively. Carbon pricing could play a key role in meeting this objective. However, a range of issues can emerge when introducing it. Among these issues, the distributional impact has been frequently highlighted as an obstacle to the public acceptance of such a mitigation policy. This paper examines the short-run welfare and emission effects of an economy-wide carbon tax on Brazilian households. The distributional impact is examined by estimating the tax burden relative to annual expenditures and changes in total GHG emissions across income levels, using tax rates consistent with the Paris Agreement and considering a lump-sum rebate that keeps the government revenue neutral. For this, we calculate energy-related GHG emissions coefficients from fossil fuel burning for the whole household consumption basket, and price and expenditure elasticities which account for the zero-expenditure and underdeclaration problems. Our results indicate that the incidence of the carbon tax is effective in reducing emissions in the short run, but imposes welfare losses, especially on the poor. The consideration of compensation mechanisms is critical when designing this type of environmental tax, specially in the context of a highly complex tax-system. [ABSTRACT FROM AUTHOR]

This paper addresses the influence of ecological fiscal transfers (EFT) on the policy-making process of adopting local protected areas (PA) by municipal governments. Framed on the transaction-cost politics (TCP), it argues that an EFT schema designed at the state level may affect the expected payoff/costs of local level decisions and the time length to create PA. The mixed research design is composed of two parts: first, a descriptive analysis detailing the evolution of EFT in the state of Minas Gerais since the beginning until its current version; second, an event history analysis of municipal PA adoption from 1966 to 2013. The conclusion suggests that, while there is an overall increase in municipal PA after the introduction of EFT, some design aspects of the instrument such as uncertainty and monitoring costs slowed and flattened that increase. • EFT affects the adoption of protected areas by increasing the incentives to adoption, namely sustainable PAs • The introduction of the quality index reduces the probability of adoption of protected areas • There is a higher degree of transaction costs in integral group of municipal protected areas after the adoption of EFT • The uncertainty surrounding the ecological fiscal transfers increases the costs which may challenge future adoptions [ABSTRACT FROM AUTHOR]