Historic Logging vs GDP in the Brazilian Amazon

Group 2

Quick Introduction


Objective: Apply the mathematical and coding techniques developed in the EPPS Math & Coding Camp - Fall 2025 to a real use case

Method: Data collection from official websites, visual and regression analyses

Problem: Are logging rates in the Brazilian Amazon correlated with the GDP of the Brazilian states that it covers?

Quick Introduction


Results:

  • The state of Amazonas has the highest nominal logging rates as compared to other northern Brazilian states

  • The state yearly GDP is highly correlated to the logging rates

  • The logging rates can be reasonably estimated using a simple linear regression model

Data sources


GDP data - IPEA (Brazil’s Applied Economics Research Institute)

https://www.ipeadata.gov.br/ExibeSerieR.aspx?stub=1&serid=1540855420&MINDATA=2014&MAXDATA=2025&TNIVID=2&TPAID=1&module=R

Logging historical data - Kaggle.com

https://www.kaggle.com/datasets/fidelissauro/desmatamento-brasil

Data overview


Data Dictionary


State: Brazilian states covered by Amazon

Year: Years under measurement

GDP: State Gross Domestic Product in BRL millions (Braziilan Reais)

Area: Logged area in square kilometers

Logging evolution over time per Brazilian state

Visual assessment of correlation between GDP and Logging

Regression plot

Regression results


Call:
lm(formula = area ~ gdp, data = amazonas)

Coefficients:
(Intercept)          gdp  
    -2083.2         32.4  

Conslusion


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