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Land Use and Transportation Costs in the Brazilian Amazon

Author

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  • Reis, Eustaquio

    (IPEA, Rio de Janeiro)

  • Weinhold, Diana

    (London School of Economics)

Abstract

In this paper we put forth some empirical evidence from the Brazilian Amazon that the relationship between roads and land clearing may be much more complex than the conventional wisdom implies. In particular we find that in areas that already at least partially cleared, improving the road network (i.e. decreasing transport costs) may actually decrease the rate of deforestation. We argue that our methodology of explicitly modeling the dynamics should be preferred to the more common static, contemporaneous analyses found in the literature. Furthermore, we endeavor to provide an encompassing explanation of our results. In other words, not only do we show that dynamic modeling yields different conclusions from the conventional wisdom, but using our dynamic approach we are able to explain why so many other studies came to (possibly erroneous) conclusions using more traditional methods.

Suggested Citation

  • Reis, Eustaquio & Weinhold, Diana, 2004. "Land Use and Transportation Costs in the Brazilian Amazon," Staff Paper Series 467, University of Wisconsin, Agricultural and Applied Economics.
  • Handle: RePEc:ecl:wisagr:467
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    File URL: http://www.aae.wisc.edu/pubs/sps/pdf/stpap467.pdf
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    Cited by:

    1. González-Val, Rafael & Pueyo, Fernando, 2012. "Trade liberalisation and global-scale forest transition," MPRA Paper 36271, University Library of Munich, Germany.
    2. Igliori, Danilo Camargo, 2005. "Determinants Of Technical Efficiency In Agriculture And Cattle Ranching: A Spatial Analysis For The Brazilian Amazon," Environmental Economy and Policy Research Discussion Papers 31927, University of Cambridge, Department of Land Economy.
    3. Robalino, Juan & Herrera, Luis Diego, 2010. "Trade and deforestation: A literature review," WTO Staff Working Papers ERSD-2010-04, World Trade Organization (WTO), Economic Research and Statistics Division.

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