The valuation of environmental services in the price formation of native rubber in Acre

Abstract

The disarticulation of traditional extractionism in the 1960s led to serious socio-economic and environmental problems in the Amazon. The Extractive Reserves (RESEX) arose as a sustainable development alternative for the region. However, the unique challenges in extractive activities – such as native rubber – continue to result in difficulties with economic viability since the market fails to capture the environmental attributes of the forests. These failures may impact the maintenance of eco-systemic services. The payments for environmental services, such as the environmental certification, arise as a way to compensate those who carry out environmental services. The general aim of this study is to evaluate the environmental valuation in the price formation of the rubber productive chain in the state of Acre. We work with the methodology of price formation through trade margin indicators (Markup) and Effective Appropriation according to the structure of the market circuits of the rubber productive chain in the region. Our results indicate that the extractivists of the Chico Mendes RESEX obtained, in the period of 2018/2019, a level of remuneration for their environmental services which may lead to economic viability in rubber production. However, from the standpoint of maintenance of environmental services – as well as the maintenance of the families of the extractivists – that remuneration is still not enough for an effective environmental valuation.