Luccas Assis Attílio , João Ricardo Faria , André Rossi de Oliveira
{"title":"Fiscal policy and deforestation","authors":"Luccas Assis Attílio , João Ricardo Faria , André Rossi de Oliveira","doi":"10.1016/j.sftr.2024.100305","DOIUrl":null,"url":null,"abstract":"<div><div>We investigate the impact of fiscal policy on deforestation in the Brazilian Amazon and Atlantic Forests. We first construct a theoretical dynamic model to examine the effects of government spending and tax revenues on the environment. We then run a VAR model to test the implications of fiscal policies on Brazilian deforestation, using data from June 1998 to May 2022. Our results suggest that government expenditures reduce deforestation in both forests. Moreover, deficit-inducing and balanced-budget fiscal policy shocks have dampening effects on deforestation, with the latter being more effective. This is good news for developing countries like Brazil. They can combat deforestation through fiscal policy in a way that doesn't worsen their fiscal situation. Our findings were unaltered when we considered the effects of a simulated fiscal policy based on spending on public goods only (social assistance, science and technology, defense, education, health, national security, and transportation).</div></div>","PeriodicalId":34478,"journal":{"name":"Sustainable Futures","volume":null,"pages":null},"PeriodicalIF":3.3000,"publicationDate":"2024-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2666188824001540/pdfft?md5=1b992a8174f8355bbd447e71d9c0a26a&pid=1-s2.0-S2666188824001540-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Sustainable Futures","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2666188824001540","RegionNum":2,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ENVIRONMENTAL SCIENCES","Score":null,"Total":0}
引用次数: 0
Abstract
We investigate the impact of fiscal policy on deforestation in the Brazilian Amazon and Atlantic Forests. We first construct a theoretical dynamic model to examine the effects of government spending and tax revenues on the environment. We then run a VAR model to test the implications of fiscal policies on Brazilian deforestation, using data from June 1998 to May 2022. Our results suggest that government expenditures reduce deforestation in both forests. Moreover, deficit-inducing and balanced-budget fiscal policy shocks have dampening effects on deforestation, with the latter being more effective. This is good news for developing countries like Brazil. They can combat deforestation through fiscal policy in a way that doesn't worsen their fiscal situation. Our findings were unaltered when we considered the effects of a simulated fiscal policy based on spending on public goods only (social assistance, science and technology, defense, education, health, national security, and transportation).
期刊介绍:
Sustainable Futures: is a journal focused on the intersection of sustainability, environment and technology from various disciplines in social sciences, and their larger implications for corporation, government, education institutions, regions and society both at present and in the future. It provides an advanced platform for studies related to sustainability and sustainable development in society, economics, environment, and culture. The scope of the journal is broad and encourages interdisciplinary research, as well as welcoming theoretical and practical research from all methodological approaches.