# **Table of Contents**

|1<br>Introduction......................................................................................................................................4|
|---|
|2<br>FEMA’s Environmental Control system......................................................................................6|
|3<br>Assessing program impacts on deforestation: methodological issues......................................9|
|3.1 A typology of deforestation...................................................................................................9|
|3.2 Defining and detecting program impact on deforestation..............................................10|
|3.3 A difference-in-difference approach..................................................................................12|
|4<br>Methodology...................................................................................................................................15|
|4.4 Study area and time period..................................................................................................15|
|4.5 Data.........................................................................................................................................16|
|4.6 Data sampling........................................................................................................................19|
|5<br>Deforestation trends......................................................................................................................20|
|5.7 Deforestation in protected areas.........................................................................................20|
|5.8 Deforestation trends by biome...........................................................................................20|
|5.9 Trends inside and outside APPs.........................................................................................21|
|5.10 Spatial effects related to the RL requirement ...................................................................24|
|5.11 Trends in deforestation relative to road proximity..........................................................27|
|5.12 Effects on size of deforestation patches ...........................................................................28|
|5.13 Summary.................................................................................................................................29|
|6<br>Statistical analysis of program effectiveness in Mato Grosso..................................................30|
|7<br>Land value and deforestation in Mato Grosso..........................................................................34|
|7.14 Statistical analysis of land values and deforestation in Mato Grosso............................34|
|7.15 Spatial characteristics of land values in Mato Grosso .....................................................36|
|7.16 Pattern of land values and deforestation in Mato Grosso..............................................37|
|8<br>Conclusions.....................................................................................................................................40|
|References ................................................................................................................................................42|
|Glossary....................................................................................................................................................44|
|Tables........................................................................................................................................................45|
|Maps..........................................................................................................................................................53|

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