ENVIROMENTAL RESERVE QUOTES: AN INTERPRETATION OF THE ECONOMIC ANALYSIS OF LAW
DOI:
https://doi.org/10.21783/rei.v3i2.228Keywords:
Forest Code, Environmental Regulation, Economic Analysis of LawAbstract
In the New Forest Code (Law no. 12.651/2012), the rural landowners’ obligation to maintain an area with native vegetation cover (or Legal Reserve Area – LRA) was made more flexible by the introduction of Environmental Reserve Quotas (ERQ). Through the organization of a compensation market, ERQs allow rural landowners with LRA deficits to regularize their situation by purchasing ERA from those with an LRA surplus (limited to the same biome). Through bibliographic review and legal research, we seek to analyze the specificities of the institutional arrangements established for this instrument’s operation. Using the analytical framework of the AED, it was possible to note that this economic instrument of environmental management, in an attempt to establish a more efficient and sustainable economic system through the internalization of externality, generates a specific allocation of property rights related to the environment. But for such an instrument to be successful in promoting forest preservation, it is necessary to ensure secure property rights and effective monitoring of the norm.Downloads
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