@article{Gurgel:125937,
      recid = {125937},
      author = {Gurgel, Angelo Costa},
      title = {Costs of Reducing Greenhouse Gas Emissions in Brazil},
      address = {2012},
      number = {1007-2016-79567},
      series = {Selected Paper},
      pages = {25},
      year = {2012},
      abstract = {The Brazilian government has announced volunteer targets  to reduce greenhouse gas (GHG) emissions during the 2009  COP meeting in Copenhagen. In this paper we estimate the  economic impacts from alternative policies to achieve such  targets, including actions to cut emissions from  deforestation and agricultural production. We employ a  dynamic-recursive general equilibrium model of the world  economy. The main results show that deforestation emissions  in Brazil can be reduced at very low costs, but the costs  of cutting emissions from agricultural and energy use may  reach 2.3% loss in GDP by 2020 if sector specific carbon  taxes are applied. Those costs may be reduced to 1.5% under  a carbon trading scheme. The negative impacts of carbon  taxes on agricultural production indirectly reduce  deforestation rates. However, directly cutting emissions  from deforestation is the most cost-effective option, since  it does not hurt agricultural production, which still  expands on lower yield and underutilized pasture and  secondary forest areas.},
      url = {http://ageconsearch.umn.edu/record/125937},
      doi = {https://doi.org/10.22004/ag.econ.125937},
}