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The study finds that Resolution 3,545, implemented in 2008, led to a substantial reduction in deforestation in the Brazilian Amazon, primarily by restricting access to rural credit for cattle ranching. Using a difference-in-differences approach and 2SLS estimation, the authors estimate that total deforested area from 2009 to 2011 was approximately 60% smaller than it would have been without the policy. The results indicate that cattle ranching is highly dependent on official credit and that credit constraints in the region lead to reduced expansion at the extensive margin. In contrast, crop-oriented municipalities showed no significant impact on deforestation, as crop production is less dependent on official rural credit and more focused on intensification.