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Sample Case Study Paper on Environmental Economics and Policy

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Sample Case Study Paper on Environmental Economics and Policy

Introduction

Brazil has always taken pride in the Amazon forest as one of the most productive rain forests. It is located in South America and covers a total of 2.1 million square miles. Approximately 64 percent of this area is within Brazil while other countries such as Peru cover the rest of the percentage of land. It is evident that destruction of the Amazon forest is taking place at the moment.

History of the environmental problem

 History reveals that mostly, deforestation in the Amazon has been for substance farming (Butler, 2015). Subsistence farmers have been on the increase cutting down trees to plant crops for their local consumption and for the provision of food for their families. In the 20th century, things began to change with most of the deforested areas being occupied by industrial activities and large scale agricultural activities (Watts, 2013). By 2000s almost three-quarters of the clearing was due to cattle ranching. It is also evident that some of the cleared land is being occupied by the poor families and land speculators. The effects of deforestation have been diverse. Some of them include a reduction on rainfall and increased temperatures. Below is a table and a pie chart reflecting the percentage coverage of the Amazon forest in various countries.

Brazil

64%

Peru

10%

Columbia

10%

Venezuela

6%

Ecuador

2%

Bolivia

6%

Guyana

3%

Suriname

2%

French Guiyana

1%

 

 

 

            Brazil is slowly adopting various policies with the quest of reducing deforestation in the Amazon. First, is the REDD policy, which entails close examination of the economic and environmental challenges brought about by deforestation. The REDD policy helps the users to compare the rate at which emissions have reduced, the avoidance of deforestation and the amount of revenue that has been generated (WHRC, 2015). The Brazilian REDD policy also considers the land that has been illegally deforested during the policy formation. It is expected that the adoption of this policy will help Brazil to contribute in the world’s fight against dangerous emissions and combating climate change. The REDD policy brought a negative effect to the subsistence farmers whose mission towards increasing agricultural farming was cut short (WHRC, 2015).

Policy and Economics            

Economics has played a huge role in influencing the policy agenda. The economy in Brazil has been on the positive side. However, it has come with one major disadvantage of having the Amazon being cleared and an increase in the pollution levels. As much as the economy of Brazil enjoys the booming side, it is predicted that the increase in deforestation is likely to bring this boom to a halt due to its effect on the volume of rainfall and temperatures (Ranganathan, 2013).

Supply and Demand

The introduction of the policy agenda influenced the relationship between supply and demand, consumers and products, and producers, price and quantity. For instance, since its main aim has been to reduce deforestation, the supply of food has decreased significantly with an increase in demand.

Producers and products

The producers, on the other hand, have been on the decrease. This has led to a decrease in the products, which has led to an increase in prices of commodities. There has also been a decrease in the quantity of food.

Environmental outcome         

However, this has had a positive environmental outcome since there has been a reduction of deforestation and an increase in environmental conservation activities. The policy was effective since the country continues to enjoy consistent rainfall and favorable temperatures. There has also been reduced pollution due to reduced number of industries in the place of forests (Ranganathan, 2013). The outcome is related to the concept of sustainability since it offers a long term solution to the concept of environmental destruction. In addition, sustainability involves environmental conservation processes and procedures that lead to improved climate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Butler, R. (2015). Amazon Destruction. The Amazon.

Ranganathan, J. (2013). Ensuring Economic Growth and Environmental Sustainability in Brazil. World Resources Institute.

Watts, J. (2013). Amazon clearance for agriculture is ‘economic own goal’ for Brazil. The Guardian.

Woods Hole Research Centre (WHRC) (2015). Banter: The Brazilian Amazon Negotiation Toolbox for the

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