EVALUATION OF PAYMENT FOR ENVIRONMENTAL SERVICES TO ENCOURAGE THE CONSERVATION OF NATIVE FOREST IN CERRADO BIOME: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS

Abstract

The provision of food, fiber, bioenergy and water is vital for the growing global demand, but it faces environmental challenges such as deforestation and habitat loss. Brazil, a prominent agricultural producer, must balance productive expansion with forest protection. The Brazilian Forest Code, although protective, is partially effective in addressing the diversity of biomes. The forest conversion in the Cerrado, especially in MATOPIBA, demands immediate solutions. This research calculates the Payment for Environmental Services (PES) necessary for producers to accept protective measures that prevent the conversion of Legal Reserve Surplus into agricultural crops. Using the model of Computable General Equilibrium Brazilian Economic Analysis, two scenarios were simulated: Base and PES (BT). In the Base scenario, 400,000 hectares of ERL would be converted, while in the PES (BT) the converted area would be 191,000 hectares, a reduction of 52%. Financially, the soybean production in the PES (BT) scenario would generate R $ 541.2 million and pastures, R $ 2.4 billion. These values highlight the importance of livestock and soybean production in the Brazilian economic context. The results provide parameters for public policies, emphasizing the need to balance agricultural production with environmental conservation, meeting the needs of producers and protecting ecosystems.