Ronaldo Seroa da Motta

Measuring sustainable income from mineral extraction in Brazil

Abstract This paper provides estimates of mineral depletion in Brazil, and their implication for the measurement of sustainable income for the mineral sector, during the period 1970–1988. Two alternative approaches are briefly reviewed: the net price approach and the user cost approach. Estimates of sustainable income from mineral extraction in Brazil are computed using both techniques, and the results obtained vary significantly between them. Estimates obtained with the user cost approach are of the same order of magnitude as conventionally measured income, with differences explained in terms of the time horizon of extraction. With the net price approach, on the other hand, large oscillations in sustainable income reflect variation in the underlying estimates of mineral reserves.

ECONOMIC INCENTIVES AND FOREST CONCESSIONS IN BRAZIL

This study is an attempt to draw attention to some economic issues that are in general not explicitly mentioned in the literature and are crucial for the attainment of the objective proposed by the Brazilian government in promoting sustainable logging extraction in concessional terms in National Forest units in the Amazon. Departing from a careful analysis of the failures occurred in other countries’ similar experiences and accounting for institutional and economic barriers found in the region, we have tried to point out effective economic incentives to counteract deforestation trends and open room for making sustainable logging a viable alternative for the use of forestland in the Amazon.