Protected-areas and technological progress in agriculture in the Brazilian Legal Amazon: An analysis of the Porter hypothesis

Jean-Galbert Ongono Olinga (), Pascale Combes Motel, José Feres () and Sonia Schwartz
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Jean-Galbert Ongono Olinga: CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne
Pascale Combes Motel: CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne
Authors registered in the RePEc Author Service: Pascale Motel Combes ()

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Abstract: In this article we analyze whether environmental protection policies in Brazilian municipalities of Legal Amazon drive technical progress in agriculture, thus verifying the Porter hypothesis. Specifically, we investigate whether agricultural firms in municipalities with protected areas (PAs) are technically more performant in agriculture than firms in municipalities without protected areas. We use agricultural census data from 1995/1996 and 2005/2006 and derive estimates of potential production frontier, technical efficiency and total factor productivity as proxies of agricultural performance in a stochastic frontier framework. Next, we run estimates of a panel model with fixed effects, including difference-indifference estimator, to assess the effect of protected-area policies on efficiency, potential production and total factor productivity changes. Results are consistent with significant changes in potential production and total factor productivity. Because the shift of the potential production across time is a result of technical progress, our estimates show that agricultural firms in municipalities with protected areas improved their technical progress more in year 2006 compared to year 1996.

Keywords: Protected areas; efficiency; potential production frontier; Porter hypothesis C21 Q10 Q24 Q28; Porter hypothesis (search for similar items in EconPapers)
Date: 2023-12-19
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