Read more about the article The Amazon Needs the Rule of Law, Not the Rule of Chainsaw
Floresta amazônica, meio ambiente, preservacão ambiental, madeira, desmatamento, em Manaus | Sérgio Lima/Poder360 01.nov.2021

The Amazon Needs the Rule of Law, Not the Rule of Chainsaw

At the origin of deforestation, there is a problem of what economists call ‘microeconomic incentives’, that is, the (risk-weighted) costs and benefits for the perpetrators. Avoiding forest damage means acting on this calculation. Having bills approved is not enough. For deforesters to take them into account in their calculations, enforcement must be effective. The risk-adjusted cost-benefit calculation favors compliance with the law only when, in case of disobedience, the probability of capture and significant punishment are sufficiently high.

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Central Banks and Climate Change: from Black to Green Swans

There are three possible justifications for the engagement by central banks with climate change issues: financial risks, macroeconomic impacts, and mitigation/adaptation policies. Regardless of the extent to which individual central banks incorporate the three prongs of motivations, they can no longer ignore climate change. Last month, a BIS book referred to a “green swan” as an adaptation of the concept of a “black swan” used in finance.

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Paul Collier and his Plundering Planet: When Both Economists and Environmentalists Don’t Get it Right

  Do you remember The Bottom Billion, Paul Collier’s 2007 book which became a classic? If you do, you will certainly like his latest work, The Plundered Planet. He came to launch…

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