Impact of the regulation of the New Brazilian Forest Code on Health: evidence based on respiratory diseases and deforestation in the Legal Amazon

Abstract

Abstract In 2012, the Brazilian government implemented the New Forest Code, an update to the previous code, aiming to contain deforestation and promote the sustainable use of forest resources. However, regarding the Legal Amazon region, more rigorous requirements and instruments are needed. In this context, this study measured the impact of this policy on respiratory disease hospitalizations caused by deforestation. From the estimates found with the difference-in-differences method, based on panel data between 2000 and 2019, increases in respiratory disease hospitalizations and in deforestation occurred after the enactment of this policy, possibly due to rural private properties not complying with the code, but also to deforestation on public lands. The results also suggest that the underlying mechanism of these effects was the fragile compliance with the restrictions and regulations established by the current forest code, which is the main instrument to combat deforestation in Brazil. JEL Code: C1, I1, Q12, Q23, Q50, Q56.