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Abstract
In this paper we analyze the economic and environmental effects of the new Brazilian Forest Code, when compared to the previous version. A general equilibrium model of Brazil, tailored for land use change and emissions analysis is used. It´s a dynamic, inter-regional and “bottom-up” model, with a land use and emissions module. Two versions of the Forest Code are analyzed: the original (old) forest code, and the new version approved recently, and still awaiting implementation. The scenarios are based on satellite imagery generated in the AgLue Project. Results point to a significant reduction in greenhouse gases emissions in both versions of the forest code, although higher in the previous version. The economic costs associated are found not to be very high, although different across different states.