Subsidies and Cattle Production in the Amazon: An Economic Policy Analysis

Emily A. McClain, Catherine Halbrendt, Jennifer Sherbourne and Conrado Gempesaw

No 197874, 1992 Occasional Paper Series No. 6 from International Association of Agricultural Economists

Abstract: Cattle production has been a major source of agricultural deforestation in Brazil's Amazon rainforest. Brazilian credit subsidies have been blamed for speeding cattle expansion and thus deforestation. A stochastic coefficients regression approach was used to quantify the effects of credit subsidies and world prices on cattle numbers in five Amazon rigions for the 1963-83 period. Results show that cattle production has been positively correlated to both prices and credit. Elasticities show that these relationships strengthened over time and that production has been more responsive to credit than to world prices.

Keywords: Livestock Production/Industries; Production Economics; Public Economics (search for similar items in EconPapers)
Pages: 8
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaaeo6:197874

DOI: 10.22004/ag.econ.197874

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