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Determinants of Amazon deforestation: the role of off-farm income

Author

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  • Araujo, Claudio
  • Combes, Jean-Louis
  • Féres, José Gustavo

Abstract

This paper aims at assessing the determinants of Amazon deforestation, emphasizing the role played by off-farm income. Initially an economic model is provided which relates off-farm income to deforestation patterns. Subsequently, empirical implications are tested using data from the 2006 Brazilian Agricultural Census. Estimation results suggest that higher off-farm incomes are associated with reduced deforestation rates. In fact, higher off-farm incomes might increase the opportunity cost associated with agricultural activities. The latter option becomes less attractive and farmers dedicate less time to farm activities, thereby reducing deforestation pressure. Results also show that smallholders respond less to the increase in the returns from off-farm activities when compared to largeholders, which matches our hypothesis of labor market imperfections regarding off-farm activities.

Suggested Citation

  • Araujo, Claudio & Combes, Jean-Louis & Féres, José Gustavo, 2019. "Determinants of Amazon deforestation: the role of off-farm income," Environment and Development Economics, Cambridge University Press, vol. 24(2), pages 138-156, April.
    • Handle: RePEc:cup:endeec:v:24:y:2019:i:02:p:138-156_00
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    Cited by:

    1. Adam G. Walke & Edward B. Barbier, 2025. "Land Redistribution and Agricultural Frontier Expansion," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 51(2), pages 165-197, April.
    2. Antoine Leblois, 2021. "Mitigating the impact of bad rainy seasons in poor agricultural regions to tackle deforestation," Post-Print hal-03111007, HAL.
    3. Apeti, Ablam Estel & N’Doua, Bossoma Doriane, 2023. "The impact of timber regulations on timber and timber product trade," Ecological Economics, Elsevier, vol. 213(C).
    4. Zabala, Aiora & Barrios, Luis Enrique García & Pascual, Unai, 2022. "From participation to commitment in silvopastoral programmes: Insights from Chiapas, Mexico," Ecological Economics, Elsevier, vol. 200(C).
    5. Silva, Felipe & Perrin, Richard K. & Fulginiti, Lilyan E., "undated". "Tradeoffs between forests and farming in the Legal Amazon Region of Brazil," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230040, Southern Agricultural Economics Association.
    6. Cano, Priscila B. & Cabrini, Silvina M. & Poggio, Santiago L., 2025. "Decision-making on crop sequence diversification in the Argentine pampas," Land Use Policy, Elsevier, vol. 159(C).
    7. Philippe Delacote & Julia Girard & Antoine Leblois, 2019. "Agricultural households' adaptation to weather shocks in Sub-Saharan Africa: What implications for land-use change and deforestation," Working Papers 1902, Chaire Economie du climat.
    8. Ferreira, Marcelo Dias Paes & Féres, José Gustavo, 2020. "Farm size and Land use efficiency in the Brazilian Amazon," Land Use Policy, Elsevier, vol. 99(C).
    9. Ferreira, M. & Feres, J.G., 2018. "Farm Size and Productive Efficiency in Brazilian Amazon," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277289, International Association of Agricultural Economists.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • 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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