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The Brazilian Amazon forest is tremendously important for its ecosystem services but attribution of economically measurable values remains scarce. Mapping these values is essential for designing conservation strategies that suitably combine regional forest protection with sustainable forest use. We estimate spatially explicit economic values for a range of ecosystem services provided by the Brazilian Amazon forest, including food production (Brazil nut), raw material provision (rubber and timber), greenhouse gas mitigation (CO2 emissions) and climate regulation (rent losses to soybean, beef and hydroelectricity production due to reduced rainfall). Our work also includes the mapping of biodiversity resources and of rent losses to timber production by fire-induced degradation. Highest values range from US$56.72 ± 10 ha−1 yr−1 to US$737 ± 134 ha−1 yr−1 but are restricted to only 12% of the remaining forest. Our results, presented on a web platform, identify regions where high ecosystem services values cluster together as potential information to support decision-making. This study spatially maps the economic value of some major ecosystem services provided by the Brazilian Amazon. It also estimates changes in these values under scenarios of degradation and low-impact logging.

This study analyzes the willingness of farmers to accept payments for ecosystem services in the Paraiba do Sul River basin applying a contingent valuation methodology. Ecosystem services would be those resulting from forest conservation and regeneration and sustainable and innovative production practices. The results suggest a regressive bias when some variables that capture the income effect positively affect participation in the program and acceptance of the payment offered. There is also evidence of adverse selection when acceptance of the amount offered is more sensitive to the service provision already being suited to the modes of production adopted. The results, on the other hand, indicate that farmers' decisions to join the program depend not only on their opportunity costs, but also on their perceptions about specific issues, such as their environmental knowledge or awareness, inertia to change production modes, fear of additional monitoring, and level of understanding of the program. These results are important to support the program's outreach strategies and the design of mechanisms for the selection of beneficiaries and pricing of payments.

It is widely recognized that Brazil has achieved a great degree of greenhouse abatement mainly due the 70% reduction in the deforestation rate combining control instruments as the improvement of monitoring system and sanction enforcement on forest management plus restrictions to agricultural expansion in the region. Brazil’s INDC is even more ambitious with a target of 90% reduction. In addition to non-use values attached to biodiversity, forest protection generates important local use from extractive production, greenhouse gas mitigation and climate regulation effects on agriculture, cattle raising, and hydroelectricity production. But the incentive power of the current control measures of forest policies has reached its limit and requires a more complex set of incentives that internalize pricing signals. One way to pursue is to count payments for the performance on the reduction emission of forest deforestation and degradation (REDD+). The chapter, after reviewing estimates of the ancillary benefits from land use mitigation options in Brazil, presents an Integrated REDD+ that catalyzes the transfer of financial resources to the land use sector, while ensuring that non-REDD+ options continue to receive financial resources for the innovation and decarbonization of industrial, transportation, and energy activities.

O trabalho analisa a eficiência técnica do setor de saneamento no Brasil considerando diferentes áreas de atuação, natureza da administração e tipos de serviços prestados entre os anos de 2006 e 2015. Para tal, utiliza um modelo de programação matemática denominado Análise Envoltória de Dados (Data Envelopment Analysis- DEA) com auxílio das técnicas Jackstrap, para detectar os outliers, e do bootstrap, para corrigir o viés e gerar intervalos de confiança, de modo a calcular escores robustos de eficiência técnica. Os resultados indicam que há economias de escopo quando os serviços de água e esgoto são ofertados pela mesma prestadora. Em geral, também se constatou maior eficiência na gestão privada do que na pública e das prestadoras regionais em relação às locais.

RESUMO Este estudo estima a probabilidade de produtores rurais participarem de um programa de pagamentos por serviços ambientais (PSA) na bacia do rio Paraíba do Sul, Brasil, para atividades de conversão produtiva, conservação e regeneração florestal, com base numa pesquisa de campo junto aos potenciais provedores. A estratégia de identificação condiciona as funções de probabilidade a participar do programa de PSA e a aceitar o pagamento proposto a fatores econômicos e percepções com técnicas de análise fatorial e testa modelos econométricos em um e dois estágios. Os resultados apontam que a adesão a programas de PSA é influenciada não apenas por fatores relativos ao custo financeiro de oportunidade para a adoção das novas atividades, mas, principalmente, por fatores relativos ao conhecimento prévio dos provedores sobre questões relativas ao programa e suas percepções de risco e incerteza quanto ao nível de esforço necessário para a adequação as atividades oferecidas. ABSTRACT This study estimates the probability of rural producers participating and accepting payments from a program of Payment for Environmental Services (PES) in the Paraíba do Sul river basin, Brazil, for productive conversion activities and conservation and regeneration of forestland, based on a survey with the potential providers. The identification strategy estimates the probability functions of participating in the PES program and of accepting the payment conditioned to economic factors and perceptions with factorial analysis techniques and econometric models in one and two stages. The results show that adherence to PSA programs is influenced not only by factors relating to the financial opportunity cost for adopting new activities, but mainly by factors relating to prior knowledge of the providers on technical issues relating to the program and their perceptions on risks and uncertainty regarding of the effort level required to adopt the program.

In 2007 we conducted a contingent valuation survey in Sao Paulo, Brazil, to estimate the population's willingness–to–pay (WTP) to avoid one hospital admission (HA) and one emergency–room visit (ER) due to respiratory diseases in adults and children younger than 5 years old; and cardiovascular diseases in adults only; both associated with atmospheric air pollution. Our annual mean WTP estimates are €81.82 (adult) and €137.92 (child) for HA; €48.40 (adult) and €90.66 (child) for ER due to respiratory diseases; €53.57 (ER) and €90.08 (HA) for cardiovascular diseases. Our results suggest altruism towards children, and a strong income effect on WTP. Results will help analysts evaluating the health benefits of specific policies with potential air pollution impacts in Sao Paulo, Brazil.

The Brazilian Atlantic Rainforest is internationally recognised as one of the most biodiverse and threatened tropical forests in the world [Myers, N., Mittermeier, R.A., Mittermeier, C.G., da Fonseca, G.A.B., Kent, J., 2000. Biodiversity hotspots for conservation priorities. Nature 403, 853–858]. The Seasonal Semi-Deciduous Forest is among the most fragmented and threatened biomes of the Atlantic Rainforest Domain. The largest remnant of this biome (35,000 ha) is protected by the Morro do Diabo State Park (MDSP), situated in the area known as the Pontal do Paranapanema, in Sao Paulo State, Brazil. Despite its environmental importance, the park is under political, economic and demographic pressure. The main aim of our research was to estimate the population's willingness to pay (WTP) for the conservation of MDSP and for the Atlantic Rainforest's remnants in Sao Paulo State as a whole, by means of the contingent valuation method (CVM). The results featured a high incidence of null WTP and of protest votes. Nevertheless, the population is willing to pay US$ 2,113,548.00/year (R$ 7,080,385.00/year) for the conservation of the MDSP (use and existence values), or US$ 60.39 ha/year (R$ 202.30/ha/year). The results indicate that the preservation value is strongly associated to the population's ability to pay, increasing with income levels. Qualitative research questions showed that the population considers protected areas to be very important. Still, the valuation of MDSP revealed a gap between the government budget allotted to the park and the value assigned to the area by the public.

DOI: http://dx.doi.org/10.12957/rdc.2015.16952 Trabalho enviado em 20 de junho de 2015. Aceito em 29 de junho de 2015. Resumo O crescimento economico do pais exige uma ampla e rapida expansao da sua infraestrutura. Nesse contexto o processo de licenciamento ambiental nos projetos de infraestrutura que sera inevitavelmente diferenciado com maturacao variavel e alto custo de transacao e, consequentemente, gerando controversia. Logo, uma revisao desse processo e crucial a adocao de novos instrumentos de governanca com mitiguem os conflitos. Porem, essa revisao deve se estender alem do de licenciamento e considerar os impactos desses investimentos alem do escopo do projeto em si. Isto e, ampliar a insercao da variavel ambiental em todas as etapas do planejamento e reduzir os ajustes no processo de licenciamento e restricoes na fase de implementacao . Para tal, ha que se adequar tambem os mecanismos de financiamento para os investimentos de baixo impacto ambiental. Tudo isso requer mecanismos de participacao com resolucao de conflitos e amplo debate sobre os nexos entre infraestrutura e preservacao ambiental. Palavras chave: infraestrutura; licenciamento ambiental; custos de transacao; resolucao de conflitos Abstract The country's economic growth requires a broad and rapid expansion of its infrastructure. In this context, the environmental licensing process in infrastructure projects will inevitably be differentiated with variable maturity and high transaction costs and thus generating controversy. Therefore , a review of this process is crucial to the adoption of new governance instruments towards conflict mitigation . However, this review should extend beyond the licensing process considering the impact of the environmental variables in all stages of planning, and thereby reducing adjustments in the licensing process and avoiding implementation constraints . In addition to that, appropriate adjustments in the current financing mechanism are needed to accommodate projects that mitigate environmental impacts. All this requ ire participatory mechanisms with conflict mediation instruments and continuous debate on the links between infrastructure and environmental preservation. Key words: infrastructure; environmental licensing; transaction costs; conflict mediation

Regulation in the sanitation sector in Brazil is facing a great deal of debate regarding the government level in which conceding authority should reside and how private operators can fulfill social objectives. The main objective of this study is to show that these issues are not the crucial barriers to the development of the sector when one looks at the productivity performance of the operators. Therefore, we elaborate a detailed analysis of the productivity performance of the current structure of the sanitation sector in Brazil. In doing so, we are able to analyze how jurisdiction of operators, as well as the nature of the management, either private or public, has affected performance of the current operators. Moreover, we investigate how the absence of tariff regulation has dissipated efficiencies and allowed the practice of monopolistic tariffs.

The objective of this study is to investigate the cost of the use of fire in the Amazon. Burnings are commonplace in the Amazon production process and contribute towards the region's agricultural expansion. Fire is used by farmers in the land preparation process and in clearing forest areas. It also helps combat plants that overrun pastures. However, fire also generates losses for farmers and landowners when it gets out of control. Since the use of fire from a private perspective obeys an economic rationale, the measurement of losses associated to the use of fire must consider the difference between intentional and accidental fires. This study introduces these important concepts which are fundamental to measure the cost of fire. Losses also reach social proportions. To address this issue, we estimated losses related to the release of carbon into the atmosphere, as well as losses due to respiratory ailments provoked by smoke from fires. Our study covered costs related to accidental pasture fires, fence losses, forest losses, carbon emissions, and impacts on human health. Our most conservative estimates indicate an average cost of around 0.2% of the region's GDP during the 1996–1999 period.

Summary This paper investigates the effects of political (mis)alignment on public service delivery when mandates are shared between state and local governments. We analyze local sewage treatment policies in the state of Sao Paulo, Brazil. The Brazilian Constitution divides the mandates related to the control of water pollution. It gives the mayors of municipalities the control of local sanitation services while the governor of the state of Sao Paulo is responsible for the quality of water bodies (watersheds and rivers). As a result, the state government and municipalities have conflicting objectives. The former is committed to water environmental protection while the latter do not internalize the externalities associated with dumping raw sewage that affect neighboring municipalities. In this paper, we argue that informal arrangements between state and local authorities play a key role in addressing this principal–agent problem or moral hazard issue. Given that constitutional debates have failed to set up a regulatory framework, the de facto solution is a more informal type of regulation anchored in the political leverage of the governor. In particular, the hierarchy within a political party allows the governor to provide aligned mayors with tailored incentives to improve local sanitation infrastructure. As a result, aligned municipalities should, on average, allocate more resources to sewage treatment. Relying on difference-in-differences estimations, we establish a causal relationship between political alignment and higher sewage treatment provision. We find that sewage treatment provision is between 18% and 46% higher in municipalities in which the mayor is aligned with the governor of the state of Sao Paulo.

This study applies distinct methodological forest accounting approaches, following Vincent and Hartwick (1997) lines, to estimate economic depreciation of timber exploitation in the Brazilian Amazon region. Although our results may be not definitive ones due to data availability problems, this exercise has proved to bring about issues which, though are theoretical and methodologically fully recognised, are not always revealed in other regional studies. High timber stocks, lack of well defined property rights and informal economic relations are issues related to the Amazonian case that require great deal of caution when one is applying economic depreciation methodologies, as will be addressed on the basis of our results. O objetivo principal deste estudo é estimar o valor de depreciação de florestas da produção madeireira na região amazônica. Utilizam-se três principais metodologias recomendadas na literatura para analisar-lhes a capacidade em capturar esses valores de depreciação na região, graças às suas características de livre acesso que fragilizam a definição de direitos de propriedades. Identifica, ainda, diferenças metodológicas associadas a alguns fatores teóricos como taxas de desconto apropriadas e comportamento dinâmico ótimo que também têm um papel fundamental no caso da Amazônia. Conclui-se que a valoração das perdas de outros serviços relacionados à deterioração de capital natural na Amazônia será necessária para viabilizar o instrumental de contabilidade ambiental como instrumento de planejamento ambiental na região.

This study will analyze the determinants of environmental performance in the Brazilian industrial sector. It uses a database conducted by the Brazilian National Confederation of Industries inquiring about questions on environmental management over 325 medium and large firms referred to the year 1997. We have been able to test a proxy of environmental performance, such as a weighted average number of environmental control practices. Consistent with results in the main literature, our study confirms that, apart from some expected characteristics of the firm, as size, sector and foreign ties, demands from communities and market incentives are also very influential determinants. Cost savings on inputs and subsidized credit are found equally important. Based on that, we recommend flexible instruments on pollution control that capture the firm’s differentials in characteristics and compliance levels as well as dissemination of information on environmental control and related cost saving opportunities. Este estudo analisa os determinantes do desempenho ambiental na indústria brasileira. Para tal, usa a base de dados da Pesquisa sobre Gestão Ambiental da CNI, que cobriu 325 médias e grandes empresas para o ano de 1997. Usamos um indicador de desempenho composto de uma soma ponderada das práticas de controle ambiental adotadas para cada firma. Consoante com a literatura, os resultados também confirmam que as características da firma, tais como tamanho, natureza do capital, grau de exportação e pressão da comunidade são outros fatores influenciando o desempenho ambiental. Acima de tudo, observou-se que práticas indutoras de redução de custos e subsídios são igualmente importantes. Com base nesses resultados sugerimos a adoção de instrumentos regulatórios mais flexíveis que capturem as diferenças entre as firmas como também outros que acelerem a disseminação de práticas de gestão ambiental que sejam redutoras de custos.

This paper focuses on the role of economic factors inducing deforestation in Brazil and thereby threatening biodiversity, giving particular attention to the exploitation pattern of forest resources in Brazil. Some economic factors cannot be easily reverted since reversion would require long-term structural adjustments to alleviate social inequalities, to accomplish a satisfactory land tenure reform and to solve renumeration issues inhibiting human resource enhancement in governmental agencies. However, there is still room to introduce economic incentives in order to mitigate the current trend towards deforestation and biodiversity losses. A economia da biodiversidade neste texto será analisada como os fatores indutores ao desmatamento no Brasil que ameaçam os recursos da biodiversidade e, portanto, o principal objeto de análise será o padrão de uso dos recursos florestais no país. Alguns destes fatores somente poderão ser removidos caso ajustes estruturais na economia ocorram para corrigir as desigualdades de renda, a concentração fundiária e a fragilidade institucional das agências ambientais. Entretanto, conforme será discutido, o uso de instrumentos econômicos na gestão ambiental poderá mitigar estes fatores indutores e alterar a tendência ao desmatamento e as perdas de biodiversidade.

The recent 70% decline in deforestation in the Brazilian Amazon suggests that it is possible to manage the advance of a vast agricultural frontier. Enforcement of laws, interventions in soy and beef supply chains, restrictions on access to credit, and expansion of protected areas appear to have contributed to this decline, as did a decline in the demand for new deforestation. The supply chain interventions that fed into this deceleration are precariously dependent on corporate risk management, and public policies have relied excessively on punitive measures. Systems for delivering positive incentives for farmers to forgo deforestation have been designed but not fully implemented. Territorial approaches to deforestation have been effective and could consolidate progress in slowing deforestation while providing a framework for addressing other important dimensions of sustainable development.

If not properly dealt with over compatible horizons, environmental issues may cause ventures to incur higher costs and extend over longer implementation periods. Prompted by the uncertainties and risks inherent in these issues, as well as by the need for long-term plans to incorporate sustainable development principles, the Brazilian Power Sector is encouraging the inclusion of environmental aspects as a decision variable right from the start of the planning cycle. The purpose of this paper is to bolster efforts to include in this sector's expansion plans, costs resulting from environmental degradation of the environment. The paper offers an overview of the methodology developed to assess and include in long-term planning for this sector, external environmental costs linked to hydro-power and thermo-power generation. It suggests the use of environmental economic valuation techniques — a practice commonly used to analyze the degradation of natural capital in various countries — as well as assessing projects and programs, adopting the premises and simplifications required for application over the longer term.

This paper provides estimates of mineral depletion in Brazil, and their implication for the measurement of sustainable income for the mineral sector, during the period 1970–1988. Two alternative approaches are briefly reviewed: the net price approach and the user cost approach. Estimates of sustainable income from mineral extraction in Brazil are computed using both techniques, and the results obtained vary significantly between them. Estimates obtained with the user cost approach are of the same order of magnitude as conventionally measured income, with differences explained in terms of the time horizon of extraction. With the net price approach, on the other hand, large oscillations in sustainable income reflect variation in the underlying estimates of mineral reserves.

Este texto resenha as estimativas de curvas de custos marginais de abatimento - marginal abatement cost curves (MACC) - de gases de efeito estufa (GEE) para a economia brasileira, em particular para o setor industrial. Estudos sobre MACC de base tecnológica têm chamado a atenção de pesquisadores, uma vez que têm demonstrado uma quantidade significativa de possibilidades de mitigação com custo negativo de abatimento, o que implicaria oportunidades de mitigação sem custos diretos. Tal possibilidade motiva o debate sobre economia verde uma vez que a sua adoção poderia, inclusive, aumentar o crescimento. Então, inicialmente, apresenta-se a análise das curvas estimadas para o Brasil e, a partir delas, faz-se uma análise de sensibilidade para estimar parâmetros para discutir as opções de custo negativo. Finalmente concluímos que, apesar da existência de vieses de estimação, a mitigação de GEE no Brasil pode tirar grande proveito dessas opções de custos negativos. Palavras-chave: custos de abatimento de GEE; economia brasileira; setor industrial. This text review the current studies marginal abatement cost curves (MACC) of greenhouse gases (GHG) for the Brazilian economy, in particular for the industrial sector. Studies on technology-based curves has drawn attention of researchers since they have shown a significant amount of negative-cost abatement potential that would motivated the debate on green economy since growth could then increase if they were applied. So we first present the review of the estimated curves for Brazil and, based on them, we make a sensitivity analysis of estimating parameters to discuss the negative cost options. Finally we conclude that, despite the existence of estimation biases, GHG mitigation in Brazil can take advantage of low and negative cost options. Keywords: GHG abatement costs; brazilian economy; industrial sector.

The United Nations Environment Programme (UNEP) estimated that the world would need to reduce greenhouse gas (GHG) emissions by 50?60 per cent from 1990 levels by 2050, with a future downward trajectory that is even more drastic, to have a probable chance of limiting a global temperature increase to 2ºC. It was also estimated that a 2ºC warming could lead to overall global losses of about 1 per cent of the world?s gross domestic product (GDP). Models predict however that losses will be distributed in an unbalanced way. While countries in Africa and South Asia may experience losses of around 4?5 per cent of their GDP, models predict minimal short term GDP losses in rich countries (Nordhaus, 2007; Stern, 2007). (?)

Adopted in 1992, the United Nations Framework Convention on Climate Change (UNFCCC)?or simply the Convention ?today has nearly universal membership, with 195 parties. However, it was only after 1997, when the Kyoto Protocol was approved, that its implementation started. Foreseeing the end of the first commitment period of the Kyoto Protocol, in 2005 the Convention agreed on a new negotiation platform, the Bali Action Plan, which should go beyond the first commitment period. (?)

The Durban and Copenhagen Accords are not a treaty. Thus, the national commitments reported therein to achieve the 2°C trajectory, even if sufficient, will not be mandatory or binding under the United Nations Framework Convention on Climate Change (UNFCCC). In brief, there is no new global agreement in which national mitigation efforts are recognised by the UNFCCC and that points to an effective reduction of emissions in line with what science recommends as necessary. (?)

Through the Copenhagen Accord and the Conference of the Parties (COP 16) in Cancun, Brazil has confirmed its national voluntary reduction targets for greenhouse gas (GHG) emissions, with reductions between 36.1 per cent and 38.9 per cent of projected emissions by 2020. These targets were defined in the National Climate Change Policy (PNMC, in Portuguese) approved by the National Congress (Law No. 12.187, dated 29 December 2009). These national targets focus on controlling deforestation, which represents a comparative advantage for Brazil. Reducing deforestation is certainly less restrictive to economic growth than mitigation actions related to energy consumption and industrial activities that other emerging economies would have to adopt. (?)

Current levels of greenhouse gas (GHG) concentrations are already worryingly high, and scientists predict that the average temperature on the planet could rise between 1.8°C and 4°C by 2100, which would cause drastic damage to the environment. (?)

This paper discusses the controversy regarding adjustments needed to be introduced in National Accounts to determine sustainable income measures. The issue is presented separately for depletion and degradation costs in order to take into account inter- and intratemporal considerations. It is argued that the approaches proposed in recent literature to measure natural resources depreciation can be considered as special cases of a distinct sustainability hypothesis. Apart from these theoretical issues, sustainable income measurement also entails very difficult empirical questions.

Este texto discute os aspectos regulatórios dos compromissos brasileiros na 15a Conferência da Organização das Nações Unidas sobre Mudanças do Clima (COP 15), realizada em Copenhague em 2009. Inicialmente descreve a evolução da regulamentação dos instrumentos da conferência, incluindo as ações nacionais de mitigação apropriadas. Em seguida faz uma análise setorial das metas brasileiras e das suas possibilidades de financiamento por meio de incentivos econômicos a atividades de baixo carbono ou da criação de um mercado de carbono. Estes instrumentos são analisados à luz da recente Política Nacional sobre Mudança do Clima (PNMC), que determina o marco regulatório inicial do país para combate ao aquecimento global. Nesse sentido, o texto aponta alguns aspectos regulatórios que ainda precisam ser desenvolvidos, tanto no que diz respeito aos instrumentos econômicos quanto no que concerne à governança. Em seguida apresenta uma síntese da economia política das negociações da COP 15 e aponta algumas trajetórias possíveis para a coordenação futura dos esforços mundiais de controle de gases de efeito estufa (GEE). This paper discusses the regulatory aspects of recent Brazilian commitments at COP 15 of the Climate Convention. Initially describes the evolution of regulatory instruments of the Convention, including the National Appropriate Mitigation Actions. Next the Brazilian sectoral mitigation targets and their funding opportunities, as financial incentives for low carbon activities or by creating a carbon market, are analyzed. This analysis is undertaken according to the regulatory framework of the recent National Policy on Climate Change (PNMC) that determines the country`s actions to combat climate change. In doing so, it addresses some regulatory issues still need to be developed for economic instruments as well as governance arrangements. Finally, it provides an overview of the political economy of the negotiations at COP 15 and points out possible paths for future coordination of global efforts to control greenhouse gases. i. The versions in English of the abstracts of this series have not been edited by Ipea`s editorial department. As versões em língua inglesa das sinopses (abstracts) desta coleção não são objeto de revisão pelo Editorial do Ipea.

International audience; Policymakers should be aware of the potential trade-off between environmental effectiveness and competitiveness concerns involving water charge implementation. This trade-off can be particularly important in countries such as Brazil, which adopt a decentralized and participative water management approach through River Basin Committees. In such a regulatory framework, it is crucial for the consensus reaching process to evaluate in advance potential impacts of water charge schemes. This paper aims at assessing the economic and environmental impacts of industrial water charges in Brazil. The analysis is based on a survey of 488 plants located within the Paraíba do Sul River Basin. The survey indicates that a significant proportion of the industrial plants approves the water charge mechanism and that increasing water costs are already inducing them to undertake conservation measures. Simulations based on an econometric water demand model suggest that water charges can induce significant industrial water demand reductions with limited impact on firms' costs. Regarding pollution control, the estimated marginal effluent treatment costs are far above the current values established for the pollution-related component of the water charge. These results indicate that competitiveness conflicts will not necessarily pervade the political economy of water charges in Brazil.

This article aims at presenting the results of the ?Survey of Industrial Water Use atthe Paraíba do Sul River Basin?. This survey collected data about 488 industrialfacilities located in the river basin area. The survey had the following goals: a)providing a general characterization of the role of water in industrial plants; and b)assessing the financial and environmental impacts of the implementation of watercharges in the basin, through the analysis of firms? water demand behaviour andeffluent treatment costs. Results suggest that water charges may attain satisfactoryresults in terms of water resources conservation while not implying in significant costincreases to the firms. On the other hand, marginal treatment cost estimations are farabove the proposed charge levels for effluent discharge. This indicates that, at leastduring the initial implementation period, water charges will not be an effectivemechanism to induce firms to undertake pollution control measures.

It was significant the reduction of child mortality rate associated with waterbornediseases in Brazil in the last two decades. Applying an epidemiological model we wereable to identify that not only improvement in sanitation coverage as well as access toeducational and health services were responsible for such rate pattern. Based on oureconometric results we estimate how much each service expansion would cost to saveone single life by reducing the analyzed mortality rate. Our results indicate thatcontinuous access to education is by far the least cost alternative. However,prevention with sanitation services seems to match almost equivalent costs of thedefensive expenditures on health services.

This article aims at presenting the results of the "Survey of Industrial Water Use at the Paraiba do Sul River Basin". This survey collected data about 488 industrial facilities located in the river basin area. The survey had the following goals: a) providing a general characterization of the role of water in industrial plants; and b) assessing the financial and environmental impacts of the implementation of water charges in the basin, through the analysis of firms' water demand behaviour and effluent treatment costs. Results suggest that water charges may attain satisfactory results in terms of water resources conservation while not implying in significant cost increases to the firms. On the other hand, marginal treatment cost estimations are far above the proposed charge levels for effluent discharge. This indicates that, at least during the initial implementation period, water charges will not be an effective mechanism to induce firms to undertake pollution control measures.

It was significant the reduction of child mortality rate associated with waterborne diseases in Brazil in the last two decades. Applying an epidemiological model we were able to identify that not only improvement in sanitation coverage as well as access to educational and health services were responsible for such rate pattern. Based on our econometric results we estimate how much each service expansion would cost to save one single life by reducing the analyzed mortality rate. Our results indicate that continuous access to education is by far the least cost alternative. However, prevention with sanitation services seems to match almost equivalent costs of the defensive expenditures on health services.