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Technical Efficiency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest

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  • Sébastien MARCHAND

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

Abstract

This paper analyses the impact of farm productivity as well as farm size on deforestation in Brazil. A two step econometric approach is adopted. A bootstrapped translog stochastic frontier that is a posteriori checked for functional consistency is used in order to estimate technical efficiency of which estimates are introduced in a land use model to assess the impact of productivity and farm size on deforestation. Analysis of agricultural census tract data suggests that technical efficiency has a nonlinear (convex) effect: less and more efficient farms use more land for agricultural activities and so they have a positive effect on deforestation. However, the majority of farms are on the ascendant slope so that efficiency implies more deforestation in Brazilian Legal Amazon. Moreover, farm size has a robust negative effect on deforestation. Contrary to many studies, this result suggests that small farms convert more natural (forested) land into agricultural land than large ones.

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File URL: http://publi.cerdi.org/ed/2010/2010.12.pdf
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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201012.

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Length: 30
Date of creation: 2010
Date of revision:
Handle: RePEc:cdi:wpaper:1161

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Keywords: Farm size; Stochastic frontier model; Brazil.; Land use model;

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Cited by:
  1. Groom, Ben & Palmer, Charles, 2014. "Relaxing constraints as a conservation policy," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 19(04), pages 505-528, August.

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