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The deforestation effects of trade and agricultural productivity in Brazil

Carreira, Igor, Costa, Francisco and Pessoa, João Paulo (2024) The deforestation effects of trade and agricultural productivity in Brazil. Journal of Development Economics, 167. ISSN 0304-3878

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Identification Number: 10.1016/j.jdeveco.2023.103217

Abstract

This paper quantifies the relative footprint of trade and agricultural productivity on deforestation across Brazilian municipalities between 2000 and 2017. Using remote-sensing data, we identify distinct effects of these two phenomena on land use. Greater exposure to new genetically engineered soy seeds is associated with faster deforestation through cropland expansion. We find no significant association between local exposure to Chinese demand and deforestation, but exposure to trade with China mitigates the deforestation impacts from the new soy technology. Our findings suggest that, when considered together, productivity gains altering municipalities’ comparative advantage played a more significant role in driving deforestation across Brazil than Chinese demand alone.

Item Type: Article
Official URL: https://www.sciencedirect.com/journal/journal-of-d...
Additional Information: © 2023 Elsevier B.V.
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce
JEL classification: Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D; Agricultural Technology; Agricultural Extension Services
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity
F - International Economics > F1 - Trade > F18 - Trade and Environment
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q23 - Forestry
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Date Deposited: 15 Dec 2023 10:54
Last Modified: 13 Apr 2024 21:15
URI: http://eprints.lse.ac.uk/id/eprint/121065

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