Economic Analysis

Among the key economic analysis projects at IIS is the “Funbio Project: Economic Analysis of the Supply Chain of Native Vegetation Recovery in the Mosaic Region of Fluminense Central Atlantic Forest Conservation Units”, under the Biodiversity and Climate Change Program in the Atlantic Forest, coordinated by the Brazilian Ministry of the Environment.
This project employs a financial viability analysis of different models of native vegetation recovery with the objective of environmental adaptation for rural properties in the region. The project seeks to identify economically viable models for rural producers through income possibilties derived from recovered areas, such as revenues, agricultural, timber and non-timber products, as well as strategies for promoting large-scale recovery.
The Ecosystem and Biodiversity Economics Study Project (TEEB) focused on the Paraíba do Sul River Basin – "The Economics of Ecosystems and Biodiversity" – is a global initiative focused on integrating biodiversity values and ecosystem services into decision making. The project features a wide range of benefits provided by ecosystems and biodiversity balanced against related economic terms. The TEEB of São Paulo wants to contribute to a more efficient and coherent management of the natural resources of the Paraíba do Sul River Basin - Porção Paulista and, at the same time, to promote local and sustainable development in the Basin, breaking the degradation cycle of the region.

The “Sustainable Rural Development (PDRS)” project of the São Paulo State Secretariat of the Environment is a byproduct of the Sustainable Rural Development project in the Paraitinga River Basin. The project, developed by IIS, focuses on sustainable rural development in the Paraitinga River Basin (São Paulo) using multicriteria analysis, as well as a diagnosis of the main land uses and ecosystem services of the region. The goal is to propose alternatives production activities and public policies, such as long-term sustainable land use activities, as well as the social inclusion of producers in the region through increasing the competitiveness of their products.

The project “Forest restoration and support to the network of native seedling nurseries in the Atlantic Forest” was born in 2015 from a partnership with the Mico Leão Dourado Association (AMLD). The project works to improve conservation of the Atlantic Forest in Casimiro de Abreu / RJ, which is home of the golden lion tamarin, an endangered species. Focusing on the monitoring of reforestation and experiments with native species of the Atlantic Forest, we use biochar as a soil conditioner. Biochar can contribute to the reduction of greenhouse gas emissions and is known to be an economically and environmentally sustainable tool that increases crop productivity.

The project “Increasing Agricultural Production Concurrently with Deforestation Prevention - Mato Grosso State Analysis” is a study to inform REDD+ (Reducing Emissions from Deforestation and Forest Degradation, plus Sustainable Forest Management) strategies about possible mechanisms for reconciling agricultural expansion and avoiding deforestation. The project works to understand implementation challenges focusing on financial requirements, management of potential risks, and financing mechanisms. It focuses both at the producer level by investigating financial needs, as well as at the broader level of execution by discussing possible and viable financing mechanisms. This is an international initiative with projects in Latin America, Africa and Southeast Asia. IIS coordinated the analysis for Brazil, focusing on the state of Mato Grosso. In this study, we employ the concept of "Land-Neutral Agricultural Expansion" (Strassburg, 2012), which guides farmers in agricultural expansion with no direct or indirect impacts on natural environments. Under the context of avoided deforestation-related incentives, this mechanism allows those who implement it to claim avoided deforestation credits. In the absence of such a mechanism, it can still be used to demonstrate commitment to sustainability goals, either to gain access to specific markets or to meet their or their partner's commitment to sustainability.