Articles

Brazil’s Economic Potential with Carbon Credits: A Study of the “Mata Do Buraquinho” – Brazil

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Introduction: Public (state) concern about the climate has, in turn, catalyzed the creation between global governments and transnational companies, and these models are subject to risk-consequence type measures, the conduct of which is now known as the voluntary carbon credit market. The article in question deals with one of the most talked-about economic instruments for combating global warming in international politics, the carbon credit market.

Objective: The article in question proposes a reflection on this subject, which has been so much talked about in recent years, focusing on its economic perspective and using a case study methodology to support its results.

Theoretical framework: The mitigation of greenhouse gas (GHG) emissions is a necessary condition to lead to a low-carbon economy, and the best way to achieve this is through the application of economic instruments. Such as putting a price on carbon, making this transition quicker and less costly from a social point of view. In this way, with a higher relative price for pollution, private agents will choose between paying for or reducing pollution, comparing the marginal cost of control with the price of carbon.

Methodology: Initially, a bibliographical review was made of the economic theoretical framework that underpins one of the instruments considered most efficient in combating climate change, the carbon credit market. In another part of this work, a practical application of this mechanism was carried out, using an evaluation methodology for an application of this instrument in the municipality of João Pessoa -PB, which stands out for being one of the most wooded cities in Brazil and for having some conservation units in its territory, such as the one used in the work, the Mata do Buraquinho Wildlife Reserve.

Results: The sale of the ecosystem services that the forest offers, in this case its capacity to absorb CO2, could improve the conditions for maintaining the area and perhaps attract more people to visit it. Thus, the value found for “Mata do Buraquinho” was R$61,968.26.