The Relationship Between Economic Inequality and  Environmental Degradation: The Case of Brazil

This paper investigates the mechanisms behind the relationship between economic inequality and environmental degradation in Brazil. The country experienced a significant reduction in inequality and poverty since 1980, which resulted in higher levels of household income and, consequently, consumption. Research of available data suggests that for Brazil, a decrease in inequality and poverty resulted in an increase of consumption of, among other things, beef products. While this most likely led to increased deforestation in the beginning of the 2000s to meet the demand, due to environmental regulations, agreements, and policies, deforestation rates declined between 2004 and 2012. These rates started to increase again after 2012, the year in which the Forest Code was revised and regulations concerning deforestation were relaxed, implying the power of government interventions. While deforestation rates can be decoupled from beef product consumption, CO2 emissions have steadily increased...Show moreThis paper investigates the mechanisms behind the relationship between economic inequality and environmental degradation in Brazil. The country experienced a significant reduction in inequality and poverty since 1980, which resulted in higher levels of household income and, consequently, consumption. Research of available data suggests that for Brazil, a decrease in inequality and poverty resulted in an increase of consumption of, among other things, beef products. While this most likely led to increased deforestation in the beginning of the 2000s to meet the demand, due to environmental regulations, agreements, and policies, deforestation rates declined between 2004 and 2012. These rates started to increase again after 2012, the year in which the Forest Code was revised and regulations concerning deforestation were relaxed, implying the power of government interventions. While deforestation rates can be decoupled from beef product consumption, CO2 emissions have steadily increased over the studied time frame, also as a consequence of the expansion of the agricultural sector. Biodiversity loss has remained neutral thus far, and Brazil is still considered the world’s most biodiverse country. However, the risk to losing biodiversity might increase in the future if deforestation rates continue to rise. Besides consumption patterns, an unequal power distribution in the country gives big business and rich elites the power to influence policies in their benefit, maintaining or exacerbating inequalities or environmentally damaging activities.Show less

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The Relationship Between Economic Inequality and Environmental Degradation: The Case of Brazil