Negative incentives and sustainability in the amazonian logging industry

Incentivos negativos promovem uma indústria madeireira sustentável? Aprisionamento da indústria madeireira na Amazônia.

Abstract:

This paper investigates the existence of lock-in of low technology and high environmental impact on Brazilian Amazon logging industry. The research employed evolutionary economics as a theoretical basis, especially the concept of technological trajectories. The duality of decisions involving logging - conventional logging (CL) versus reduced-impact logging (RIL) - was studied. An agent-based simulation model - in which decision-making under bounded rationality is based on a genetic algorithm - was implemented in Java programming language. Results demonstrate the existence of lock-in, producers aversion to risks, greater operational efficiency of sustainable logging, and benefits derived from a policy of environmental bonuses, both in economic and ecological terms.

Keywords:
logging industry; bounded rationality; agent-based simulation; reduced-impact logging; evolutionary economics