Pereira, Rodrigo Mendes; Góes, Geraldo Sandoval - 2019
This paper proposes an environmental DSGE model with deforestation of a tropical rain forest. The forest can be used to … 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 …