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"Although private forest use in Brazil has been regulated at least since the Forest Code of 1965, cumulative deforestation in the Brazilian Amazon reached 653,000 km2 by 2003 (INPE 2004). Much of this deforestation is illegal. In 1999, the State Foundation of the Environment (FEMA) in Mato Grosso introduced an innovative licensing and enforcement system to increase compliance with land use regulations. If successful, the program would deter deforestation that contravenes those regulations, including deforestation of riverine and hillside forest (permanent preservation areas), and reduction of a property's forest cover below a specified limit (the legal forest reserve requirement). This study seeks to assess whether introduction of the program affected landholder behavior in the desired direction. Simple before/after comparisons are not suitable for this purpose, because there is considerable year to year variation in deforestation due to climatic and economic conditions. Nor is it valid to assess program impacts by comparing licensed and unlicensed landholders, even though the program focused its enforcement efforts on the former. This is because, first, landholders with no intention of deforesting may choose to become licensed; and second, unlicensed landholders may be deterred from deforestation by the mere existence of a serious program that aims for universal licensing. To meet these challenges, the study applies a difference-in-difference approach to geographically explicit data. It looks for, and confirms, post-program declines in deforestation in high-priority enforcement areas relative to other areas; in more easily observed areas relative to less easily observed areas; and in areas of low remaining forest cover (where further deforestation is probably illegal) relative to high remaining forest cover. Thus, even against a backdrop of higher aggregate deforestation (driven in part by higher agricultural prices), there is evidence that the program in its early stages (before 2002) did shift landholder behavior in a direction consistent with reduced illegal deforestation. (The legality of deforestation was not however directly observed). The study hypothesizes that this behavioral change resulted from an initial perception of increased likelihood of the detection and prosecution of illegal deforestation, following announcement of the program. The study does not assess Mato Grosso's new system for environmental regulation (SLAPR) impacts following the change of state administration in 2003. "--World Bank web site.
Although private forest use in Brazil has been regulated at least since the Forest Code of 1965, cumulative deforestation in the Brazilian Amazon reached 653,000 k.
This empirical paper sheds light on a significant element of the debate of whether infrastructure services have a strong impact on economic development by exploring the impact of innovative road freight services on downstream business users. The paper uses a new and purpose-specific survey of 165 logistics service providers and 493 user enterprises in food processing, food distribution, and the automotive industry in the Czech Republic, Hungary, and Poland. The main findings are that there are substantial downstream benefits from innovations in road freight services, both dampening cost increases and raising sales revenues of business users. The additional finding that increased intensity of competition in road freight services is significantly associated with the provision of innovative services suggests that easing any remaining barriers to competition in upstream business sectors should be a priority.
The authors study the sources and pattern of China's impressive economic growth over the past 25 years and show that key issues currently of concern to policymakers-widening inequality, rural poverty, and resource intensity-are to a large extent rooted in China's growth strategy, and resolving them requires a rebalancing of policies. Using both macroeconomic level and sector data and analyses, the authors extend the growth accounting framework to decompose the sources of labor productivity growth. They find that growth of industrial production, led by a massive investment effort that boosted the capital/labor ratio, has been the single most important factor driving GDP and overall labor productivity growth since the early 1990s. The shift of labor from low-productivity agriculture has been limited, and, hence, contributed only marginally to overall labor productivity growth. The productivity gap between agriculture and the rest of the economy has continued to widen, leading to increased rural-urban income inequality. Looking ahead, the authors calibrate two alternative scenarios. They show that continuing with the current growth pattern would further increase already high investment and saving needs to unsustainable levels, lower urban employment growth, and widen the rural-urban income gap. Instead, reducing subsidies to industry and investment, encouraging the development of the services industry, and reducing barriers to labor mobility would result in a more balanced growth with an investment-to-GDP ratio that is consistent with the medium-term saving trend, faster growth in urban employment, and a substantial reduction in the income gap between rural and urban residents.
"Past research into the determinants of international trade highlighted the importance of the basic spatial gravity model augmented by additional variables representing sources of friction. Studies modeled many sources of friction using various proxies, including indices based on expert judgment in some cases. This paper focuses on logistics friction and draws on a data set recently compiled by the World Bank with specific quantitative metrics of logistics performance in terms of time, cost, and variability in time. It finds that the new variables that relate directly to logistics performance have a statistically significant relationship with the level of bilateral trade. It also finds that a single logistics index can capture virtually all of the explanatory power of multiple logistics indicators. The findings should spur public and private agencies that have direct or indirect power over logistics performance to focus attention on reducing sources of friction so as to improve their country's ability to compete in today's global economy. Moreover, since the logistics metrics are directly related to operational performance, countries can use these metrics to target actions to improve logistics and monitor their progress. "--World Bank web site.
"As pesticide traders are important sources of information about the health impacts of pesticides, a crucial understanding of their perception is necessary to guide further pesticide information dissemination efforts through this channel. To this end, a 2003 survey of 110 Bangladeshi pesticide traders was conducted with questions on the pesticides in stock, knowledge and training in pesticide use and handling, sources of information, protective measures, and health effects. A two-equation bivariate probit model was initially estimated for health impairment and trader perception with health effects as an endogenous regressor in the perception equation. Results indicate that pesticide toxicity, exposure in terms of number of years spent in the pesticide business, trader's age (experience), and the interaction between the most harmful pesticides and training received in pesticide use and handling were the significant determinants of health impairment status. Risk perception was determined by actual health impairment status, pesticide toxicity, the average number of hours spent in the shop per day, training, and the interaction term between highly toxic substances and training. The evidence suggests that the current information content may not be effective, and thus training programs should be revised with a greater emphasis on health hazards and averting behavior. "--World Bank web site.
This pocket-sized reference on key environmental data for over 200 countries includes key indicators on agriculture, forestry, biodiversity, energy, emission and pollution, and water and sanitation. The volume helps establish a sound base of information to help set priorities and measure progress toward environmental sustainability goals.
For more than three decades, the impact of aid on the global environment has been the subject of vigorous protest and debate. With billions spent on environmental aid each year, this groundbreaking text seeks to understand why aid is given, how effective it is, and whether aid is actually going to the places with the greatest environmental need.
The report offers a simple framework for policy analysis by identifying three forest types: frontiers and disputed lands; lands beyond the agricultural frontier; and, mosaic lands where forests and agriculture coexist. It collates geographic and economic information for each type that will help formulate poverty-reducing forest policy.