The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon

By Lykke E. Andersen; Clive W. J. Granger et al. | Go to book overview

Technical appendix
In the following sections we detail the econometric methodology employed in this book. While most of the econometrics are fairly standard procedures, several of the techniques have been developed by the authors, in some cases specifically for the purpose of analyzing the kind of data we have in the DESMAT data set. These include the panel model evaluation technique developed by Granger and Huang (1997), the random reduction estimation strategy developed by Weinhold (2001) and the ideas of “thick” modeling presented in Granger (2000). We provide a fairly comprehensive description here but for a complete technical discussion we refer the interested readers to the academic working papers cited above.The technical appendix proceeds as follows:
• Section A1 addresses the overall modeling philosophy and discusses some of the econometric work that preceded the models presented in this book.
• Section A2 describes the technical detail behind the Granger and Huang (1997) model evaluation technique frequently utilized in writing this book.
• Section A3 outlines in detail the random reduction strategy employed in the estimation of the main models and reviews some of Granger's ideas of “thick” modeling.
• Section A4 discusses some technical details of how the models were used to produce the roads and Avança Brasil simulations.
• Section A5 includes a table of variables and the full model results for both the 1985 and 1995 models.

A1 Econometric philosophy

The process by which any model is derived is of critical importance in evaluating the policy implications that result, and thus we provide a general outline of our modeling philosophy here. A primary guiding principle that has permeated the analysis is that the empirical model be derived in as objective a manner as possible. To that end we have made extensive

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The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon
Table of contents

Table of contents

  • Title Page *
  • Contents v
  • Figures vii
  • Tables ix
  • Preface xiii
  • Acronyms and Abbreviations xviii
  • 1 - Introduction 1
  • 2 - Development of the Brazilian Amazon 11
  • 3 - The Municipal Database 36
  • 4 - The Sources and Agents of Deforestation 66
  • 5 - Alternatives to Deforestation: Extractivism 91
  • 6 - Modeling Deforestation and Development in the Brazilian Amazon 111
  • 7 - Carbon Emissions 152
  • 8 - The Costs and Benefits of Deforestation 167
  • 9 - Conclusions and Recommendations 200
  • Technical Appendix 209
  • References 241
  • Index 257
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