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Agricultural Trade and Deforestation: The Role of New Roads

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  • Gollin, Douglas
  • Wolfersberger, Julien

Abstract

In this paper, we study how new roads affect the spatial patterns of agricultural production and consequently impact deforestation and development outcomes, focusing on the historical experience of Brazil. We find that the expansion of Brazil’s road network since the 1990s can account for a tenth of the total amount of deforestation that the country has experienced, with significant variation across regions. Perhaps surprisingly, our results suggest that the increase in agricultural income attributable to road construction has been more limited. Focusing on complementarities with technical change, we examine how improved market access combined with new agricultural technologies impacted land conversion.

Suggested Citation

  • Gollin, Douglas & Wolfersberger, Julien, 2024. "Agricultural Trade and Deforestation: The Role of New Roads," CEPR Discussion Papers 19710, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19710
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    File URL: https://cepr.org/publications/DP19710
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    Keywords

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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