Subsidized Rural Credit and Deforestation in Brazil

This study analyzes the relationship between subsidized rural credit and deforestation in Brazil between 2020 and 2022. It reveals that 31% of properties that deforested accessed subsidized rural credit, receiving an average of R$14 billion annually. Deforestation is concentrated on large properties, with 5% of the largest properties accounting for 74% of vegetation loss associated with credit. The study highlights the need to align economic incentives with environmental conservation and sustainable development objectives.