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Environmental degradation and economic development are two of the most pressing issues facing the world today, and public policy that aims to address one of these may unintentionally affect the other. I study the effect of an increase in environmental law enforcement on local economic conditions in rural Brazil. In the first part of this paper, I use data on more targeted anti-deforestation law enforcement activities, guided by satellite alerts, and link that to local forest conversion. I then exploit the staggered introduction of a policy that increases monitoring and enforcement in municipalities with a history of high deforestation, and link this to a range of economic development outcomes. I find that more targeted law enforcement reduces conversion rates of forest to farm land. Furthermore, economic conditions in municipalities with stricter monitoring improve, indicating that environmental enforcement and economic development need not be at odds. • Targeted law enforcement in Amazon Biome of Brazil reduces deforestation. • Economic conditions in municipalities with stricter deforestation-monitoring improve. • GDP per capita is higher, and number of recipients of income support lower in targeted municipalities. • Environmental enforcement and economic development need not be at odds. [ABSTRACT FROM AUTHOR]

After forest governance reforms by the Brazilian government, Amazon deforestation rates dropped by almost 80% between 2004 and 2012. Since then, however, deforestation has slowly increased again, casting doubts on the long-term sustainability of past conservation policy achievements. Clearly, deforestation rates and the associated local drivers of land-use and land-cover change differ considerably across the region, and adapting public policies to dynamic local contexts and actor constellations remains a major challenge for decision-makers. This paper seeks to contribute to the related science-policy debate by applying frontier theory insights to map, quantify, and compare land-cover dynamics in the Brazilian Amazon between 2004 and 2015. Our theoretical framework performs well in explaining broad variations in scope, nature, and agents of land-use and land-cover change across different frontier regions. We observe two types of transformative processes at deforestation frontiers in the Amazonian context. First, recent frontier development is characterized by an intensification of cattle ranching, and an increasing share of agricultural activities in the production portfolio, which could be the result of better access to modern technologies and markets, combined with forest governance induced scarcity of land for expansion of historically dominant extensive pasture systems. Second, the share of medium and large-scale deforestation declines at first, but rebounds during the observation period in all frontier types after 2012. Further research is needed to better understand the role of the changing political environment in driving these medium and short-term transformations in land-use and land-cover change. Furthermore, policy-makers, international cooperation, and civil society must seek strong integration between value chain based governance measures and effective environmental law enforcement. [ABSTRACT FROM AUTHOR]