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European farmers’ responses to higher commodity prices: cropland expansion or forestlands preservation?

Chouaib Jouf and Laté Lawson

No 2021-10, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper analyses the impact of European farmers’ responsiveness to changes in agri-commodities prices on their trade-off between agricultural expansion and forestland preservation. We investigate this issue by estimating a recursive model using a comprehensive dataset of European agricultural holdings over the period 2008-2017, covering 128 regions (26 countries). Our main finding is that there is indeed evidence of such a trade-off. An increase in commodity prices leads to higher cropland profitability, which in turn causes deforestation in the 128 European regions considered. Replicating the analysis on different subsamples confirms the robustness of these findings.

Keywords: Agricultural commodities prices; Land-use; Cropland; Woodland. (search for similar items in EconPapers)
JEL-codes: Q11 Q18 Q23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2021
New Economics Papers: this item is included in nep-agr and nep-tra
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