Economic risks of environmental setbacks in Brazil’s Iguaçu National Park

Abstract

Summary Iguaçu National Park, a UNESCO World Heritage Site, faces threats from proposed legislation aimed at downgrading its protection to allow reopening of the Caminho-do-Colono road, which would fragment the National Park. This study assesses the National Park’s importance in preserving native vegetation and its economic significance via payments for environmental services. We evaluated different scenarios, demonstrating how these resources are vital for certain municipalities. By comparing economic performance before and after the road’s closure, our findings reveal that, contrary to local beliefs, the closure did not negatively impact the local economy. Additionally, these legislative bills are legally infeasible and fail to offer environmental or economic benefits, favouring small interest groups over the collective good. This research highlights that the Caminho-do-Colono road is not a viable approach to municipal development. Instead, maintaining the National Park’s integrity is crucial for both ecological preservation and economic stability in the region. Our analysis underscores the broader implications of environmental conservation efforts and the necessity of rejecting projects that compromise protected areas. This study provides a comprehensive evaluation of the National Park’s role, emphasizing the need for sustainable development that aligns with environmental and community well-being.