Agricultural exports, market concentration, and deforestation

Exportations agricoles, concentration de marché et déforestation

Clément Nedoncelle, Philippe Delacote and Léa Crepin
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Léa Crepin: CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, INERIS - Institut National de l'Environnement Industriel et des Risques

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Abstract: This paper studies how exporter concentration in agricultural value chains relates to production and deforestation. Focusing on the Brazilian soybean sector, we combine detailed trade data with municipality-level information on production and forest cover over 2004–2021. We document that exports are highly concentrated among a few large firms and that higher concentration is systematically associated with lower agricultural revenues per unit of output. Consistent with these patterns, we find that municipalities with more concentrated exporter structures exhibit lower soybean production and lower deforestation. We interpret these results as suggestive evidence that buyer concentration shapes production incentives and land-use outcomes, highlighting a potential tradeoff between farmer revenues and environmental pressures.

Keywords: Concentration; Deforestation; Exporters; Market power (search for similar items in EconPapers)
Date: 2024-02
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