Ecosystem services from Brazil’s Amazon rainforest: Modeling their contribution to human’s regional economy and welfare and the potential role of carbon mitigation projects on their continued provision

Rosimeiry Portela1,*, Roel Boumans2 and Robert Costanza2 1 Marine, Estuarine and Environmental Science Program, University of Maryland, College Park, MD 20742, USA 2 Gund Institute of Ecological Economics, Rubenstein School of Environment and Natural Resources, University of Vermont, Burlington, VT 05405-1708

The Amazon tropical rain forest is the largest tract of tropical forest on Earth. Its vegetation is now known to strongly influence the regional pattern of precipitation and radiation, playing an important role on the regulation of global greenhouse gases. Forest clearing, by threatening the current dynamic equilibrium of vegetation and regional climate, is certain to lead to important changes to regional and ultimately global climate. Yet, over the last few decades, vast areas of the Amazon forest have being cleared for logging, pasture, and shifting agriculture in Brazil, where approximately 60% of the Amazon forest is located. Because they generate a direct, monetary income, logging, pasture, and agriculture activities are the most commonly perceived economic benefits of the Brazilian Amazon and have been used to justify the current pattern of forest exploitation. Very little or no attention has been paid to the value of protected forests in providing ecological functions such as carbon storage, biodiversity maintenance, and water cycling. This research provides a quantitative dimension of the Brazilian Amazon rainforest ecosystem services contribution to human’s regional economy and welfare. For that purpose, a Regional Unified Meta-model of the Biosphere of the Brazilian Amazon (RUMBA) was developed to simulate energy, water, carbon and nutrients on the terrestrial systems of that region’s original land covers and on their anthropogenic land uses, and the exchanges among those and the atmosphere. The provision of goods and services_ the result of the conditions and processes described in the model, and their contribution to humans’ economy and welfare were investigated under a baseline scenario, as well as alternative scenarios. The model was further used to test the implementation of a market-based mechanism to reduce deforestation, in the form of payments for the forest climate regulation service.

*Corresponding author: Rosimeiry Portela Mailing address: 1140 23rd ST. NW. Apt. 507 Washington, DC, 20037 Tel.: +1-202-833-9260 Fax: +1-202-835-1043 Email address: [email protected]