The project “The Impacts of Infrastructure Projects on Deforestation and Local Economic Development: Evidence from Brazilian Roads and Hydropower Plants” is strongly aligned with the theme of sustainability, as it rigorously and empirically investigates how large infrastructure projects—especially hydropower plants and roads—affect the environment and socioeconomic development in sensitive regions such as the Amazon. The studies show that while these projects may generate temporary local economic growth, their impacts on deforestation are heterogeneous and, in many cases, significant. The research reveals that approximately 14% of deforestation in areas near hydropower plants can be directly attributed to the construction of these projects, and that the effects vary depending on institutional context, type of local governance, and the presence of effective environmental policies. Moreover, the project demonstrates that well-designed public policies—such as PPCDAm (Action Plan for the Prevention and Control of Deforestation in the Legal Amazon)—can mitigate these impacts, highlighting the importance of state action in promoting a development model that reconciles infrastructure with environmental conservation. Thus, the project contributes directly to the debate on how to plan and execute infrastructure projects sustainably, respecting ecological limits and promoting socio-environmental justice.

Researcher: Francisco Junqueira Moreira da Costa
EPGE Brazilian School of Economics and Finance (FGV EPGE)

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