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CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State Univer CEnREP – Camp Resources 2011 Pedro Pires de Matos* Erin O. Sills NC State University Environmental Law in the Amazon: Testing Impacts on Land-Use Dynamics using Spatial Panel Models * Corresponding author: [email protected] Wrightsville Beach NC, August 7-9

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CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

CEnREP – Camp Resources 2011

Pedro Pires de Matos*Erin O. Sills

NC State University

Environmental Law in the Amazon: Testing Impacts onLand-Use Dynamics using Spatial Panel Models

* Corresponding author: [email protected]

Wrightsville Beach NC, August 7-9

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Deforestation in the Brazilian Amazon

Environmental Law

Outline

Data

Econometric Models for Spatial Panels

Results

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Deforestation in the Amazon

12% - 30%(van der Werf, 2009 –FAO, 2006)

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Deforestation in the Amazon

The “Arc of Deforestation”

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Annual loss of forest cover in the Brazilian Legal Amazon

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

5000

10000

15000

20000

25000

30000

35000

Source: INPE 2011

Deforestation in the Amazon

Km2

Source: Mongabay.com, 2011

Small-scaleagriculture(20-25%)

Cattle ranching(65-70%)

Large-Scaleagriculture(5-10%)

Other 1-2%)

Logging (2-3%)

Causes of deforestationin the Brazilian Amazon,

2000-2005

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

The first Forestry Code was created with Federal Decree N. 23.793, from 1934.

The concept of Legal Amazon was created in 1953 (Federal Law 1.806).

• The Forestry Code was substantially revised by Federal Law n. 4.771, from 1965.

• Defines small properties:• Small property in Legal Amazon <150 ha.• Minimum of 80% of household income from agro-forestry or extraction.

• Defines Permanent Protection Areas (Área de Preservação permanente – APP):• Protect water resources, soil, landscape, biodiversity and population’s wellbeing.

• Defines Legal Reserve (Reserva Legal – RL):• Preserve ecosystems and biodiversity.

Environmental Law in Brazil

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

• APP – Protect resources and provide ecosystem services• River margins (riparian corridors)• Lakes and other bodies of water• Water springs• Top of hills and mountains• Steep hillsides (> 45 degrees)• High erosion areas• High altitude areas (> 1800m)• Urban green areas (e.g. protection of highway corridors)

• RL – Preserve ecosystems and biodiversity• 80% of rural properties’ area in the Legal Amazon

• Lowered to 50% for deforested properties• RL can be shared by several lots and be located in a different place

within the same hydrographical basin

Environmental Law in Brazil

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

• APP – Protect resources and provide ecosystem services• River margins (riparian corridors)• Lakes and other bodies of water• Water springs• Top of hills and mountains• Steep hillsides (> 45 degrees)• High erosion areas• High altitude areas (> 1800m)• Urban green areas (e.g. protection of highway corridors)

• RL – Preserve ecosystems and biodiversity• 80% of rural properties’ area in the Legal Amazon

• Lowered to 50% for deforested properties• RL can be shared by several lots and be located in a different place

within the same hydrographical basin

Environmental Law in Brazil

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

The question:

Are these legal instruments effective?

The research question

The answer:

Yes No It dependsAn economist’s default answer

X

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Study Area

9392 Lots

20 Km0

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Total area per land use/land cover

Data

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

0 - 10 %

10 - 45 %

45 - 55 %

55 - 90 %

90+ %

1984

Data

0 - 10 %

10 - 45 %

45 - 55 %

55 - 90 %

90+ %

0 - 10 %

10 - 45 %

45 - 55 %

55 - 90 %

90+ %

0 - 10 %

10 - 45 %

45 - 55 %

55 - 90 %

90+ %

1996 2000 2005

0 - 10 %

10 - 45 %

45 - 55 %

55 - 90 %

90+ %

2009

Forest cover as percentage of lot area

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

The question:

Are these legal instruments effective?

The research question

The answer:

Yes NoX

The “actual” research question:

Are these legal instruments affecting land use/land cover change dynamics?

(i.e. do farmers alter their behavior around legally defined minimum forest cover levels?)

It dependsAn economist’s default answer

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Data

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Age of Lot

Firstoccupation

Lot settlement year2/3 consecutive years:Visible pasture > 0.5 haDecrease in forest > 0.5 haVisible urban class

Spatiallyweighted

Spatial weightingLocate 10 nearest neighbours (NN)If age gap between lot and youngest of 8 NN > 10 y Assign that age to lot

Official Date(INCRA)

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Market access

Distance tomain city

Distance tonearest market

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Key variables

RiversForest Cover 2000

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Spatial panel models

t

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Random effects

Spatial panel modelsPooled cross sections

Fixed effects

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Spatial panel modelsSpatial Lag Model (SLM)

Spatial Error Model (SEM)

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Spatial panel models

Spatial Durbin Model (SDM)

Generalized Spatial Model (GSM)

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

The Model

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Results

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Results

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Results

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Conclusions and ongoing work

Environmental legislation is not effective...... but farmers appear to “acknowledge” its presence.

Policy implications:

Improved enforcement decelerates deforestation (obvious).

Enforcement above incentives/subsidies (e.g. REDD+)?

Working with sub-samples and additional covariates.Incorporating HH survey data.

CEnREP Camp Resources 2011 Pires de Matos, Sills, NC State University

Thank you for your time. Questions?

CEnREP – Camp Resources 2011Wrightsville Beach NC, August 7-9

Erin O. SillsPedro Pires de Matos*

NC State University

* Corresponding author: [email protected]

Environmental Law in the Amazon: Testing Impacts onLand-Use Dynamics using Spatial Panel Models