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date: 28 July 2021

Industrial Policy as an Environmental Policy: Forest Preservation and the Industrialization of Manauslocked

Industrial Policy as an Environmental Policy: Forest Preservation and the Industrialization of Manauslocked

  • Alexandre A.F. RivasAlexandre A.F. RivasDepartment of Economics, Federal University of Amazonas and Piatam Institute
  •  and James R. KahnJames R. KahnWashington and Lee University, Piatam Institute, and the Federal University of Amazonas

Summary

The world is experiencing a major dilemma between the need to reduce global warming and to promote economic development. Brazil has the largest tropical rainforest on the planet, which plays an important role in this scenario. In the heart of this forest there is a special economic zone (SEZ), the Manaus Free Trade Zone. Studies indicate that there is a positive relationship between this economic activity and the level of forest conservation in the state of Amazonas, where the Manaus Free Trade Zone is located. There is important literature on SEZs, examining their economic and environmental impact in general, and specifically examining the Manaus Free Trade Zone. There is also a proposal to turn this SEZ into a major Brazilian economic initiative to protect the Amazon rainforest.

Subjects

  • Environmental Economics

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