Brazil has been pointed out as the number one country chop downing tropical native forest. This process takes place especially in the Amazon River Basin Area, which holds the largest tropical forest area in the World and spread over nine different Brazilian states, compounded of 782 cities....

This paper analyses the empirical relationship between Amazonian rainforest deforestation and local population welfare, measuring the impact on welfare if the deforestation area has to be reduced. The Municipal Human Development Index (MHDI) was used to measure welfare. Using 1995 Agriculture...