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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]

Extensive reforestation may be required to avert dramatic loss of biodiversity, system resilience and ecosystem services from Brazil's Atlantic Forest, and is legally required by Brazil's Forest Code. Restoration on farmland however threatens agricultural output and the livelihoods of small family farmers, leading to weak enforcement of the law and a national debate over the Code which resulted in revisions in 2012 that significantly reduced legally mandated restoration. To inform the design of effective environmental policies, we interviewed 60 typical dairy family farmers utilizing pasture-based agroecological grazing practices to assess their perceptions and knowledge of the pre-2012 Forest Code, its impacts and their willingness to comply. Multiple correspondence analysis (MCA) identified three distinct clusters: farmers who understood the forest code and its ecological impacts and were willing to comply; farmers who understood the ecological benefits of restoration, but were unwilling to comply; and those with little knowledge of benefits or interest in compliance. We evaluate three policy options for promoting restoration, paying particular attention to their impacts on farmer livelihoods and on their intrinsic willingness to restore and preserve forest cover. We conclude that payments for ecosystem services in the form of subsidies for agroecology practices are promising. [ABSTRACT FROM AUTHOR]

Tropical forest conservation is considered a low-cost option for climate change mitigation. But mitigation cost assessments have featured opportunity costs, neglecting policy implementation costs. Here we use official data to identify the Brazilian federal government's operational and institutional budgets related to forest conservation policies implemented from 2000 to 2014. We distinguish the allocated and executed budgets of these policies, and provide scenario-based estimates of their cost-effectiveness. On average, Brazil spent US$ 1 billion/year on forest conservation policies at the federal level. Brazil's substantial reduction in annual forest loss after 2004 was accompanied by a higher operational budget execution of disincentive-based policy instruments, and an absolute increase in both allocated and executed institutional budgets. The post-2004 successful mitigation effort represented additional implementation costs to the Brazilian federal government of US$ 308–923/ha of avoided deforestation, or US$ 0.87–2.60/tCO 2 of avoided emissions. Factoring in also approximate municipal and state expenditures, these costs increase to US$ 385–1153/ha or US$ 1.09–3.25/tCO 2 . We conclude that implementations costs are non-trivial in size, including compared to estimates of land users' opportunity costs. This has important implications for REDD + policy design, in the sense that implementation costs need to be adequately considered. [ABSTRACT FROM AUTHOR]

Payments for Ecosystem Services (PES) can use many design features. We investigate the impact of payment conditionality types, i.e. different specifications when to pay and when not to pay, for PES on deforestation and agricultural production in a lab-in-the-field experiment. Our experiment also tests variations in contract period and payment volatility. We designed a highly visual simulation game to characterize the decision situation of a cattle rancher in Brazil. The player can expand extensive pasture by deforestation or intensify existing pasture. The model includes both a land and a capital constraint. We applied the game in an economic, framed lab-in-the-field experiment in Tocantins, Brazil. Payments conditional on forest carbon stock lead to slow, but steady deforestation, while payments conditional on forest carbon stock-change suppressed deforestation more strongly. But payments conditional on stock increase cattle production while payments conditional on stock-change have no effect on production. Thus, depending on the level of leakage, either type of conditionality can be more cost-effective in reducing global carbon emissions. Contracts with limited periods lead to strong deforestation after the end of the payment period. Payment volatility had no significant effect. [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]

Payments for Ecosystem Services (PES) have become a popular instrument in the last decades and this growing trend is also clearly evident in Brazil. However, challenges related to implementation of these schemes are often underestimated. Any guarantee that a payment will secure or provide such a service is subject not only to underlying ecological uncertainties but also to those entailed by the kinds of social interaction that are inherent to policy implementation. It is argued that the objectives proposed with these instruments can only be attained by ensuring a wide participation of land users. This article advances this topic reporting and discussing evidence on farmer's reasons to participate in three PES-water schemes in Brazil using a combination of qualitative and quantitative research approaches. Results indicate that the diverging opinions regarding how ecosystem services are generated or secured, decentralized governance structures and the involvement of representative bodies in scheme design and implementation are important factors to consider. Furthermore, access to information and general environmental concern were found to be important variables to explain the propensity of farmers to participate. This generates serious policy implications for developing consistent communication and consultation strategies with scheme beneficiaries. [ABSTRACT FROM AUTHOR]

We examine the relationship between socio-economic factors and public opinion on environmental policies in Brazil, drawing on a survey conducted in June 2012. There are few systematic studies of the determinants of environmental preferences in emerging economies, and Brazil is a particularly interesting case because of its democratic political system, rapid economic growth, and importance for the global environment. In general, we find that the Brazilian public is highly supportive of environmental protection. To explain variation in environmental preferences, we focus on the effects of income and education. Many previous studies suggest that both should have positive effects, but the empirical evidence is mixed. Indeed, we find that income has no effect on environmental preferences. However, education is a strong predictor of environmental preferences. While college education is not necessary for environmental awareness, there is a large difference between Brazilians with primary and secondary education. For policy, the findings imply that investment in secondary education can raise environmental awareness, regardless of income levels. [Copyright &y& Elsevier]

Developing countries have been recently addressing the respiratory health impact of agricultural burnings with innovative environmental policy. In Acre state, Brazilian Amazon, mechanization is subsidized, enabling smallholders to comply with a cap on burned area. To appraise amendments in the policy, a statistical Hicks-Kaldor test was developed and applied to stakeholders' stated choice surveys coupled with an econometric estimate of fire's effect on health. The test unveiled the trade-off between urban dwellers' health and smallholders' production. It also avoided the large disparity of groups in size and in goods valued to result into instability of efficiency assessment across six alternative group weighting schemes. The amendments that increased joint welfare required a great expansion of mechanization supply. Such change, which is not presently feasible at state level, could be piloted at municipal level by relying on the private sector and smallholders' organizations, and also on subsidized credit and power tillers. • A statistical Hicks-Kaldor test, robust to stakeholders' disparities, is devised. • It is applied to a policy replacing agricultural fires with subsidized tractors. • A health and welfare trade-off is unveiled by alternative stakeholder weightings. • · The test proved highly stable across six alternative group weightings. [ABSTRACT FROM AUTHOR]

• The Brazilian Ecological Fiscal transfer (ICMS-E) has, to date, promoted the creation of new protected areas (PAs). • The quality of that impact may be lower than expected: new PAs belong mostly to a category that impose low local costs. • The quantity of that impact is unlikely to still be high, as the incentive in ICMS-E's formula declines as PA stock rises. • State and local governments respond differently to ICMS-E incentive, respectively focused more on impact or revenue. Brazil's ecological intergovernmental fiscal transfer (ICMS-E) is a conservation incentive for protected areas (PAs). It redistributes tax revenues to reward municipalities for hosting PAs. To quantify its impact on the creation of state and municipal PAs, we used panel regressions on a longitudinal municipality dataset that combined information on PA creation and ICMS-E implementation for the 1467 municipalities in 6 Brazilian states in the Atlantic Forest region that never changed borders, from 1987 to 2016. We found that the percent of the municipal area covered with state or municipal PAs increased as a consequence of ICMS-E implementation. However, the magnitude of this effect declined as the ICMS-E revenue is shared more widely due to the expansion of PAs that reduced the gain from new PAs. We also found that ICMS-E policy primarily spurred the creation of PAs with less restrictive rules – similar to IUCN category V reserves – mainly by municipalities. For more restrictive PAs with higher local costs for municipalities, ICMS-E promoted state-proposed PAs but not municipal PAs. Our results suggest that states used ICMS-E to incentivize local implementation of their conservation preferences, including strict conservation, while municipal governments responded mostly with low-cost actions to increase their revenues. [ABSTRACT FROM AUTHOR]

Brazil has created a market mechanism for compensating past deforestation based on the acquisition of forest surplus from different properties. This mechanism, known in Brazil as the 'CRA market', could become the world's largest forest compensation program. The success of this market depends on the specifics of regulations that are yet to come. The objective of this article was to explore three relevant issues to the regulation of a future CRA market within the Atlantic Forest of Minas Gerais state: the balance between supply and demand; incentives for trade in priority areas; and potential policy overlaps between different compensation programs. Based on geospatial evaluations and content analysis of government documents, the study revealed a potential oversupply of CRAs in the Minas Gerais Atlantic Forest, as surplus areas were found to be 2.76 greater than deficit areas. Eventual incentives for trade in priority areas could lessen oversupply, but unfold into sensitive territorial trade-offs. The potential overlap between the CRA market and the existing compensation program of the Atlantic Forest Act, while still unclear, is unlikely to be a very relevant one. Future avenues of research are suggested. • The CRA market could become the world's largest forest compensation program. • Relevant issues for an eventual Atlantic Forest market are evaluated. • CRA oversupply is likely to occur. • Incentive for trade in priority areas could unfold into controversial trade-offs. • Interactions between compensation programs need further investigation. [ABSTRACT FROM AUTHOR]