The deforestation effects of trade and agricultural productivity in Brazil

Igor Carreira, Francisco Costa and João Paulo Pessoa

Journal of Development Economics, 2024, vol. 167, issue C

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.

Keywords: Deforestation; Trade; Agricultural productivity; Technology; Soy; Brazil (search for similar items in EconPapers)
JEL-codes: F18 O13 Q16 Q17 Q23 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: The Deforestation Effects of Trade and Agricultural Productivity in Brazil (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:167:y:2024:i:c:s0304387823001736

DOI: 10.1016/j.jdeveco.2023.103217

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