The economics of cropland conversion in Amazonia: The importance of agricultural rent
AbstractWe use spatially efficient logit models to explore the role of economic incentives on the expansion of cropland in the Mato Grosso region between 2001 and 2004. An empirical measure for agricultural economic rent is used to quantify the desirability of a particular plot of land, which previous research proxies with variables such as distance to roads or urban areas, and simple climatic and edaphic variables. Results indicate that the measure for economic rent provides additional information and explanatory power to one of the most commonly used proxies, distance to roads. As predicted by economic theory, it is not simply access or variation in transportation costs that drives the spatial determinants of agricultural expansion, but the expected total returns from the venture. This suggests that spatially explicit rent models can be used to simulate the location and quantity of land-use change in an economically consistent framework. Such a framework lays the foundation for an enhanced methodology that can evaluate the ability of fiscal policy levers to influence the location of agricultural conversion with the ultimate aim of balancing economic and environmental goals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 69 (2010)
Issue (Month): 7 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Land-use change Economics Spatial econometrics Policy analysis;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Newey, Whitney K & West, Kenneth D, 1987.
"A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix,"
Econometric Society, vol. 55(3), pages 703-08, May.
- Whitney K. Newey & Kenneth D. West, 1986. "A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix," NBER Technical Working Papers 0055, National Bureau of Economic Research, Inc.
- Conley, Timothy G. & Molinari, Francesca, 2005.
"Spatial Correlation Robust Inference with Errors in Location or Distance,"
05-12, Cornell University, Center for Analytic Economics.
- Conley, Timothy G. & Molinari, Francesca, 2007. "Spatial correlation robust inference with errors in location or distance," Journal of Econometrics, Elsevier, vol. 140(1), pages 76-96, September.
- Timothy Conley & Francesca Molinari, 2005. "Spatial correlation robust inference with Errors in Location or Distance," CeMMAP working papers CWP10/05, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Vera-Diaz, Maria del Carmen & Kaufmann, Robert K. & Nepstad, Daniel C. & Schlesinger, Peter, 2008. "An interdisciplinary model of soybean yield in the Amazon Basin: The climatic, edaphic, and economic determinants," Ecological Economics, Elsevier, vol. 65(2), pages 420-431, April.
- Robert K. Kaufmann & Seth E. Snell, 1997. "A Biophysical Model of Corn Yield: Integrating Climatic and Social Determinants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 178-190.
- Chomitz, Kenneth M & Gray, David A, 1996. "Roads, Land Use, and Deforestation: A Spatial Model Applied to Belize," World Bank Economic Review, World Bank Group, vol. 10(3), pages 487-512, September.
- Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
- Alexander Pfaff & Juan Robalino & Robert Walker & Steven Aldrich & Marcellus Caldas & Eustaquio Reis & Stephen Perz & Claudio Bohrer & Eugenio Arima & William Laurance & Kathryn Kirby, 2007. "Road Investments, Spatial Spillovers, And Deforestation In The Brazilian Amazon," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 109-123.
- Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January.
- Yagi, Hironori, 2012. "Farm size and Distance-to-Field in Scattered Rice Field Areas:with Integration of Plot and Farm Data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125390, International Association of Agricultural Economists.
- Stibniati Atmadja & Louis Verchot, 2012. "A review of the state of research, policies and strategies in addressing leakage from reducing emissions from deforestation and forest degradation (REDD+)," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 311-336, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.