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GEO Brasil - UNEP

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annex x 2 - main economic and<br />

environmental links<br />

econômicas e ambientais<br />

It is hard to evaluate the environmental connections to the<br />

recent macroeconomic context in Brazil, both in value and<br />

in magnitude. However, some conclusions may be drawn.<br />

On the positive side of the issue, public deficit control<br />

contributed to fiscal inability to maintain fiscal subsidies<br />

and sectorial credits. Among these are the ones that affect<br />

the environment. A realistic tariff system related to a rise in<br />

water, sanitation and energy costs. On the other hand, the<br />

need for inflation control may have set up barriers to the<br />

internalisation of environmental costs in other economic<br />

sectors.<br />

annex 2<br />

381

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