Investments in transportation infrastructure can impact the environment beyond their immediate surroundings. This paper builds an interregional trade model to estimate the general equilibrium effects of changes in infrastructure on deforestation. Using panel data on the evolution of the...

The 'deforestation problem' in Brazil consists of a variety of interrelated issues, of which this paper identifies a regional, sectoral and macroeconomic dimension. Using a regionally and sectorally disaggregated general equilibrium model of Brazil, it is shown that macroeconomic reform is...