Agriculture area and production has expanded greatly in Brazil during the last 40 years. The area of annual crops almost doubled, while the area planted for pastures and forestry tripled. However, the rate of deforestation has considerably reduced since 2004. In this paper we analyze the effect...

In this paper we analyze the Indirect Land Use Change (ILUC) effects of ethanol production expansion in Brazil through the use of an inter-regional, bottom-up, dynamic general equilibrium model calibrated with the 2005 Brazilian I-O table. A new methodology to deal with ILUC effects is...