Fires in Brazilian Amazon: Why does policy have a limited impact?

Abstract

The paper identifies the key factors limiting the effectiveness of current public policies to reduce Brazilian Amazon fires. Among them, (i) the dominant allocation of budget to fire suppression in detriment of prevention, (ii) the geographical limitation of the federal action and the reduced policy making capacity of states and municipalities, (iii) institutional insufficiencies and transaction costs related with fire use licensing, (iv) limited access to credit, market, labor and rural extension, constraints that block the diffusion of fire-free agriculture. It is recommended that policies be restructured to account for their cost and benefit and to include fire-dependent communities in their design and implementation. Progress in complementary socioeconomic policies is also needed.