Freakonomics Radio 428. The Simple Economics of Saving the Amazon Rain Forest
Jul 30, 2020
Michael Greenstone, former chief economist for President Obama, and Gretchen Daly, a Stanford biology professor, delve into the economics of saving the Amazon rainforest. They discuss the urgent impact of deforestation, emphasizing financial incentives over moral appeals for conservation. The duo explores innovative economic models that value ecosystem services and propose subsidizing local ranchers to align economic needs with ecological sustainability. Their conversation highlights that preserving the Amazon not only protects the environment but could also be more profitable than traditional agriculture.
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Amazon's Carbon Storage
- The Amazon rainforest stores a massive amount of carbon, exceeding annual U.S. greenhouse gas output.
- Destroying it would release enormous amounts of carbon, negating emission reduction efforts.
Brazil's Deforestation History
- Between 1970 and 2005, Brazil's deforestation destroyed an area comparable to Connecticut yearly.
- President Lula's 2005 program, focusing on penalties, reduced deforestation by 80% by 2012.
Economics of Deforestation
- People deforest for economic reasons, especially cattle ranching, which uses 70% of cleared land.
- Cattle ranching in the Amazon is unproductive due to poor soil and distance to consumers.