Macroecomic effects on deforestation of the EU-Mercosur trade deal

Details

Supervisors

Gomes, Joseph

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [60] en sciences économiques, orientation générale

Abstract

The major detractors of the EU-Mercosur agreement claim that as it may boost Brazil’s exports, it may also increase deforestation. This work estimates the possible macroeconomic effects of EU-Mercosur agreement on deforestation in Brazil's Amazon Forest. The estimation uses impulse response functions from local projections with annual panel data for all States of Legal Amazon region, covering the period from 1988 to 2020. It can be observed that no change in deforestation trajectory would come with an export increase, so, reinforcing the conclusions of previous studies. No major environment impact should come from the deal itself, but rather from the way institutions and companies will deal with environment protection by means of laws and cooperation.