Influence of Rains in the Andiroba and Copaiba Oils Supply and the Impact on The Socioeconomic and Environmental Benefit in the West Of Pará

Abstract

Objective: The purpose of this study was to calculate the socio-economic and environmental cost-benefit of the extraction and commercialization of copaiba and andiroba oils, in light of climate changes in the western region of Pará state, from 1999 to 2017.   Theoretical Framework: The Generalized Method of Moments (GMM) was applied to estimate the market model structured by the demand and supply equations for andiroba and copaiba oils.   Results and Discussion: The cross elasticity of supply indicated that oil production does not compete with the use of labor, land, and capital in the local market, as they are considered joint products. After the climate changes, consumers were the main affected party, with a loss of 21,74%, represented by the average decrease in Consumer Surplus of – R$ 1.264,95 thousand/year.   Research Implications: Since 1999, with the climate changes, there has been a decrease in the socio-economic and environmental benefit for the population of western Pará to the level of R$ 4.664,37 thousand, which represented a decrease of 20,60% (-R$1.210,31 thousand) compared to the benefit obtained before the climate change (R$5.874,68 thousand).   Originality and Value: Sociobiodiversity products such as copaiba and andiroba oils are sensitive to climate changes. Excess and scarcity of rainfall cause a decrease in production and loss of income for extractivists. Therefore, these products should be part of the insurance policy to guarantee the income of producers.