Economic valuation of illegal Brazilian Amazon deforestation: A framework based on Habitat Equivalency Analysis and ecosystem services restoration

Abstract

This work introduces a framework for assessing the economic value of illegal clearings in the Amazon primary rainforest based on Habitat Equivalency Analysis and the restoration of suppressed ecosystem services (ES). The framework ensures ES restoration in both quantity and quality, considering past and current losses as well as future gains adjusted for discount rates to present values. The translation of ES restoration into economic values is grounded in local market values, striving to ensure the results are both representative and accurate. The application of the framework in 10 ha of illegally cleared Amazon primary rainforest resulted in an economic valuation of 2022 Int.$ 341,611, or 2022 Int.$ 3175 per hectare per year, which is 35 % higher than valuations based solely on timber and cleared area restoration. The framework is sensitive to compensation period, discount rate, and ES recovery curve, leading to economic effects on the valuation of the illegal clearings in the Amazon primary rainforest. The framework is distinguished by its low human, material, and temporal costs, making it applicable even in preliminary environmental assessments. By describing the tangible economic value of Amazon primary rainforest illegal clearings, the framework allows for critical comparison with existing literature on tropical forest values, aiming to enrich society's comprehension of the costs and benefits of Amazon deforestation.