Market-Based Innovations for Environment Conservation in Brazil

Abstract

This presentation describes the physical characteristics of the Amazon region and the ineffectiveness of command and control regulations to address the rapid widespread deforestation that occurs. Several types of incentive-based regulation have been implemented in Brazil to promote protection of environmental resources, such as the Private Natural Heritage Reserve (RPPN), the ecological value-added tax (ICMS Ecológico), tradeable rights for legal reserves, and the Certified Forest Products Buyers Group. These market-based initiatives are described and evaluated.