Market instruments and forests: Evaluating the EU'S deforestation-free regulation in Brazil's soy supply chain

The European Union's Deforestation-Free Regulation (EUDR), approved in 2023 and set to take effect in December 2026, mandates plot-level traceability and physical segregation of compliant from non-compliant products in supply chains linked to deforestation. This paper assesses the economic and environmental impacts of EUDR compliance costs on Brazil's soybean supply chain. Using a dynamic multiregional computable general equilibrium (CGE) model with integrated land-use transitions, we simulate c