The Evolution of Reforestation in Brazil

This paper analyses the evolution of reforestation in Brazil and evaluates the federal government's previous programmes to stimulate that activity, focusing on the discontinued Programme of Fiscal Incentives for Afforestation and Reforestation (PIFFR). Despite the great increase in reforested area in Brazil since the 1970s, the country will suffer a scarcity of roundwood from reforested areas over the first decade of the 21st Century. In the 1960s, 1970s and 1980s, the Brazilian federal government supported programmes to foster reforestation; however, no stimulus programmes were implemented in the 1990s when roundwood demand increased and production stagnated. Today, the government recognizes the need to stimulate reforestation. The PIFFR, the most important of those earlier programmes, is evaluated using a traditional cost-benefit approach. The evaluation shows that a reinstatement of this programme would now be inappropriate. The conclusion suggests a direction for new federal policies that seek to foster the enlargement of reforestation in segments where the price mechanism has not worked well.