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Transportation infrastructure and deforestation in the Amazon

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  • Araujo, Rafael
  • Assunção, Juliano
  • Bragança, Arthur

Abstract

We examine the effects of transportation infrastructure on deforestation in the Amazon. We build an inter-regional trade model in which agricultural commodities can be produced either in cleared lands or in forest lands. The model delivers a closed-form expression connecting deforestation and market access. Using panel data on the evolution of the transportation network and land use we estimate sizable effects of infrastructure on deforestation. Model simulations indicate that ignoring transportation infrastructure’s effects beyond the projects surroundings underestimates deforestation impacts by one quarter. We also show how our framework can be used to evaluate the deforestation induced by individual projects, an essential input for public policies.

Suggested Citation

  • Araujo, Rafael & Assunção, Juliano & Bragança, Arthur, 2025. "Transportation infrastructure and deforestation in the Amazon," Journal of Development Economics, Elsevier, vol. 177(C).
    • Handle: RePEc:eee:deveco:v:177:y:2025:i:c:s0304387825001105
    DOI: 10.1016/j.jdeveco.2025.103559
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    Cited by:

    1. Falco, Chiara & Raimondi, Valentina, 2025. "Hydropower dams, deforestation, and land use change: evidence from Brazil," FEEM Working Papers 376270, Fondazione Eni Enrico Mattei (FEEM).
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    3. Farid Farrokhi & Elliot Kang & Heitor S. Pellegrina & Sebastian Sotelo, 2025. "Deforestation: A Global and Dynamic Perspective," NBER Working Papers 34150, National Bureau of Economic Research, Inc.

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    Keywords

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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