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Pasture conversion and competitive cattle rents in the Amazon

Author

Listed:
  • Mann, Michael L.
  • Kaufmann, Robert K.
  • Bauer, Dana Marie
  • Gopal, Sucharita
  • Nomack, Mallory
  • Womack, Jesse Y.
  • Sullivan, Kerry
  • Soares-Filho, Britaldo S.

Abstract

The economic incentives for conversion to pasture in Mato Grosso Brazil are investigated using pastureland rents. Pastureland rents are estimated from physical and geographic determinants, and verified by predicting the location of conversion to pasture between 2001 and 2004. Results indicate that a one-hundred dollar increase in mean cattle rent increases the probability of conversion to pasture from 8.6 to 11.1%. The use of economic rent allows the direct study of fiscal policy levers on land conversion behavior, expanding policy discussions beyond the role of roads and road improvement towards the use of excise and conversion taxes, or conservation subsidies.

Suggested Citation

  • Mann, Michael L. & Kaufmann, Robert K. & Bauer, Dana Marie & Gopal, Sucharita & Nomack, Mallory & Womack, Jesse Y. & Sullivan, Kerry & Soares-Filho, Britaldo S., 2014. "Pasture conversion and competitive cattle rents in the Amazon," Ecological Economics, Elsevier, vol. 97(C), pages 182-190.
  • Handle: RePEc:eee:ecolec:v:97:y:2014:i:c:p:182-190
    DOI: 10.1016/j.ecolecon.2013.11.014
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    References listed on IDEAS

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    Cited by:

    1. Petterson Molina Vale, 2015. "The Conservation versus Production Trade-off: Does Livestock Intensification Increase Deforestation? The Case of the Brazilian Amazon," Working Papers 2015.20, Fondazione Eni Enrico Mattei.
    2. Petterson Molina Vale, 2014. "The conservation versus production trade-off: does livestock intensification increase deforestation? Evidence from the Brazilian Amazon," GRI Working Papers 174, Grantham Research Institute on Climate Change and the Environment.
    3. Bowman, Maria S., 2016. "Impact of foot-and-mouth disease status on deforestation in Brazilian Amazon and cerrado municipalities between 2000 and 2010," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 25-40.

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