Technical Efﬁciency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest
AbstractThis 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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Date of creation: 06 Jan 2011
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Farm size; Stochastic frontier model; Brazil.; Land use model;
Other versions of this item:
- Sébastien MARCHAND, 2010. "Technical Efﬁciency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest," Working Papers 201012, CERDI.
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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- Groom, Ben & Palmer, Charles, 2014.
"Relaxing constraints as a conservation policy,"
Environment and Development Economics,
Cambridge University Press, vol. 19(04), pages 505-528, August.
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