A Look at Amazon Basin Seasonal Dynamics with the Biophysical ...

Carbon as an economic strategy to reduce deforestation in southwestern Amazonia:opportunities and limits for rural populations in Acre State, BrazilF. Kennedy A. de Souza 1 and Diogo Selhorst 1,21 Federal University of Acre, Zoobotanical Park, Sector of Land Use and Global ChangeStudies – SETEM/PZ/UFAC, Rio Branco, AC Brazil, sakf@zipmail.com.br2 Foundation Bioma, Rio Branco, AC, BrasilThe Avança Brasil Program plans to invest approximately one billion dollars peryear for the next five years in southwestern Amazonia, which includes Acre. Toguarantee access of rural products to markets, the Acre State government plans to invest32 million dollars/yr in roads. Rural economic agents direct their investments and willdefine the evolution of regional deforestation, possibly accelerated by theseinfrastructural investments. Cattle raising, occupying 75% of the deforested areas of theState, is the most dynamic sector. In 1998 it was responsible for 18% of exports from theState; by 2001 this proportion increased to 75%. The total contribution of agriculture andcattle ranching to the state economy increases by about 8.2 million dollars/yr. One of thepossible mechanisms to influence these rural economic agents can be via economicincentives using carbon. We simulated the effect of avoided deforestation on committedcarbon emissions. The average rate of deforestation in Acre is 53,000 ha/yr and can bedisaggregated into small producers and large cattle ranchers. The amount of carbonstocked in biomass and liberated by the transformation of forest to pasture is about 130 to200 tons C/ha. At US$10/ton, the ‘value’ of the carbon is on the order of US$1,300 to2,000/ha. Avoiding deforestation would be worth approximately 70 to 100 milliondollars/yr, raising per capita rural incomes by 195 to 300 dollars/yr. In extractive reservesthis value could reach 500 dollars/yr/family. Administrative costs, however, are notincluded and could reach 45% of the value, if current trends hold. The State of Acre isconsidered a model of sustainable development for the region and will need to developmechanisms, such as carbon incentives, to limit deforestation.