Brazil Environmental Economics. Alyssa Cobus Madeline Mitchell Matthew Ferrara Doreen Brown . OUTLINE. I Introduction II Environmental Policies in Brazil III Pollution as Negative Externality IV Incomplete Market V Solution to complete Market
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II Environmental Policies in Brazil
III Pollution as Negative Externality
IV Incomplete Market
V Solution to complete Market
VI Pros/Con’s of Environmental Policies
VII What’s next?
$2.025 trillion (2009 est.)
$2.029 trillion (2008 est.)
$1.931 trillion (2007 est.)
(U.S. GDP (PPP) $14.26 trillion (2009 est.)
agriculture: 20% (2003 est)
Brazil is one of the largest greenhouse gas emitter in the world, but it is also one country with the largest potential to reduce such emission
Brazil defended its position: cautioned that "environmental protectionism" should not stand in the way of economic development among the less developed countries
Brazil committed the nation to lead on efforts to reconcile environmental protection with economic development
set of policies addressing global
in the region
prevented the emission
of about 2661 million
tCO2e between 2005-09
e.g. signing agreements with organizations representing productive sectors – org. pledge not to purchase raw material from illegally deforested area (by Oct. 2009, 62 companies have signed)
sets out policies aimed to achieve sustainable development
The two main challenges in achieving the objective of reducing greenhouse gas emissions are emissions from land use, land use change and forestry and to follow a low carbon path of development
Under the plan, deforestation is to be reduced by 70% below the 1996-2006 average by 2018, which would avoid 4.8 billion tons of greenhouse gas emissions
1. Low carbon development2. Renewable electricity3. Biofuels4. Deforestation5. Forest cover6. Vulnerability and adaption7. Research and development
Leonid Hurwicz Eric Maskin Roger Myerson
Univ of Minnesota Univ. of Chicago Princeton Univ.
•Pollution is a negative production externality − Firms don’t include pollution into production
• Cleaner Supply Curve – supply curve that includes pollution.
Cleaner Supply = Dirty Supply + Pollution Cost