ENVIRONMENT AND CATTLE RAISING IN THE AMAZON
Ademar Ribeiro Romeiro
Abstract
The purpose of this paper is twofold: first, we discuss approaches to the problem of discrete choice between preservation and irreversible losses first proposed by Krutilla and Fischer ( 1985), CiariacyWantrup (1952) and Bishop (1978) to work out an analytic schema to be applied to the case of the Brazilian Amazon Rain Forest. We work on the premises that there is ample reason to demand the preservation of almost the entire forested area as it exists today. Secondly, however, we try to show that for the rational individual, decision maker, the destruction of the forest through substitution by extensive cattle ranching is the correct decision, considering the opportunity cost of preservation alternatives. We conclude with a brief exposition of the policy implications of the picture depicted.
Keywords
References
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