Economic Losses and Cross Border Effects Caused by Pantanal Catastrophic Wildfires

Camila Scur, Mayara and Centuriao, Daniel and Niel Berlinck, Christian and Kelly Luciano Batista, Eugênia and Libonati, Renata and Rodrigues, Julia and Valle Nunes, André and Couto Garcia, Leticia and Fernandes, G. Wilson and Alves Damasceno-Junior, Geraldo and de Matos Martins Pereira, Alexandre and Anderson, Liana and Manuel Ochoa-Quintero, Jose and da Rosa Oliveira, Maxwell and Bandini Ribeiro, Danilo and O. Roque, Fabio (2023): Economic Losses and Cross Border Effects Caused by Pantanal Catastrophic Wildfires.

Abstract

The Pantanal, the Earth's largest continuous wetland, experienced severe impacts from wildfires in 2019 and, particularly, in 2020. The surge in wildfires can be attributed to several factors, including climate extremes, inadequate fire management, ineffective policymaking, as well as commercial and demographic dynamics. Understanding the economic effects of wildfires is crucial for guiding resource allocation toward prevention and firefighting efforts. This study aims to examine the economic losses resulting from the catastrophic wildfires in the Brazilian Pantanal region during 2019 and 2020. By utilizing publicly available datasets and data obtained from representatives of public and private institutions, we constructed scenarios to simulate the fire's impacts on economic input-output matrices. Through the application of structural impact analysis, we can simulate variations in output, value-added, and income by considering demand variation scenarios resulting from external shocks. Our findings reveal that the economic impact of the wildfires extends beyond the burned areas, affecting other regions of Brazil, such as São Paulo and Paraná. The lack of a comprehensive public database encompassing different scales (municipal, state, and national), along with a clear methodology for calculating and reporting firefighting expenses, hinders accurate prediction of economic losses and impedes proactive investments in wildfire prevention.

• Item Type: MPRA Paper
• Language: English
• Keywords: structural impact analysis, natural disasters, input-output models, S2iD portal, tele-coupling
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics ; Industrial Ecology

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