IDEAS home Printed from https://ideas.repec.org/p/eth/wpswif/13-170.html
   My bibliography  Save this paper

Dynamics of Indirect Land-Use Change: Empirical Evidence from Brazil

Author

Abstract

The expansion of a given land use may affect deforestation directly if forests are cleared to free land for this use, or indirectly, via the displacement of other land-use activities from non-forest areas towards the forest frontier. Unlike direct land conversion, indirect land-use changes affecting deforestation are not immediately observable. They require the linking of changes occurring in different regions. This paper empirically assesses the possible indirect effects of sugarcane expansion in Brazil’s state of São Paulo, on forest conversion decisions in the country’s Amazon region. Further, it examines the evidence for a mechanism through which these effects might materialize, namely a displacement of cattle ranching activities from São Paulo state to the Amazon. The results suggest a positive relationship between sugarcane expansion and deforestation. This indirect land-use effect is shown to be a dynamic process materializing over 10 to 15 years.

Suggested Citation

  • Saraly Andrade de Sá & Charles Palmer & Salvatore Di Falco, 2013. "Dynamics of Indirect Land-Use Change: Empirical Evidence from Brazil," CER-ETH Economics working paper series 13/170, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:13-170
    as

    Download full text from publisher

    File URL: http://www.cer.ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/WP-13-170.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Saraly Andrade de Sá & Charles Palmer & Stefanie Engel, 2012. "Ethanol Production, Food and Forests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 1-21, January.
    4. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2011. "Ethanol expansion and indirect land use change in Brazil," Working Papers 0114, Universidade Federal do Paraná, Department of Economics.
    5. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    6. repec:asg:wpaper:1013 is not listed on IDEAS
    7. Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January.
    8. Sergio Margulis, 2004. "Causes of Deforestation of the Brazilian Amazon," World Bank Publications, The World Bank, number 15060, June.
    9. Andersen,Lykke E. & Granger,Clive W. J. & Reis,Eustaquio J. & Weinhold,Diana & Wunder,Sven, 2002. "The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon," Cambridge Books, Cambridge University Press, number 9780521811972.
    10. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    11. Barbier, E B & Burgess, J C, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
    12. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, World Bank Group, vol. 14(1), pages 73-98, February.
    13. Feng, Hongli & Rubin, Ofir D. & Babcock, Bruce A., 2008. "Greenhouse Gas Impacts of Ethanol from Iowa Corn," Lifecycle Carbon Footprint of Biofuels Workshop, January 29, 2008, Miami Beach, Florida 49101, Farm Foundation.
    14. Goldemberg, José & Guardabassi, Patricia, 2009. "Are biofuels a feasible option?," Energy Policy, Elsevier, vol. 37(1), pages 10-14, January.
    15. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andersen, Lykke E. & Groom, Ben & Killick, Evan & Ledezma, Juan Carlos & Palmer, Charles & Weinhold, Diana, 2017. "Modelling Land Use, Deforestation, and Policy: A Hybrid Optimisation-Heterogeneous Agent Model with Application to the Bolivian Amazon," Ecological Economics, Elsevier, vol. 135(C), pages 76-90.
    2. Keles, Derya & Choumert-Nkolo, Johanna & Combes Motel, Pascale & Nazindigouba Kéré, Eric, 2018. "Does the expansion of biofuels encroach on the forest?," Journal of Forest Economics, Elsevier, vol. 33(C), pages 75-82.
    3. Alexander Pfaff & Juan Robalino, 2017. "Spillovers from Conservation Programs," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 299-315, October.
    4. Furgała-Selezniow, Grażyna & Jankun-Woźnicka, Małgorzata & Mika, Mirosław, 2020. "Lake regions under human pressure in the context of socio-economic transition in Central-Eastern Europe: The case study of Olsztyn Lakeland, Poland," Land Use Policy, Elsevier, vol. 90(C).
    5. Amin, A. & Choumert-Nkolo, J. & Combes, J.-L. & Combes Motel, P. & Kéré, E.N. & Ongono-Olinga, J.-G. & Schwartz, S., 2019. "Neighborhood effects in the Brazilian Amazônia: Protected areas and deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 272-288.
    6. Julien Wolfersberger & Serge Garcia & Philippe Delacote, 2013. "An empirical analysis of the cumulative nature of deforestation," Working Papers 1303, Chaire Economie du climat.
    7. Amigues, Jean-Pierre & Moreaux, Michel, 2018. "Competing Land Uses and Fossil Fuel, Optimal Energy Conversion Rates During the Transition Toward a Green Economy Under a Pollution Stock Constraint," TSE Working Papers 18-981, Toulouse School of Economics (TSE).
    8. Sant'Anna, Marcelo Castello Branco, 2019. "How green is sugarcane ethanol?," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 807, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    9. Hoel, Michael & Sletten, Thea Marcelia, 2016. "Climate and forests: The tradeoff between forests as a source for producing bioenergy and as a carbon sink," Resource and Energy Economics, Elsevier, vol. 43(C), pages 112-129.
    10. Ali, Daniel Ayalew & Deininger, Klaus & Harris, Anthony, 2017. "Using National Statistics to Increase Transparency of Large Land Acquisition: Evidence from Ethiopia," World Development, Elsevier, vol. 93(C), pages 62-74.
    11. Fischer, Joern & Abson, David J. & Butsic, Van & Chappell, M. Jahi & Ekroos, Johan & Hanspach, Jan & Kuemmerle, Tobias & Smith, Henrik G. & von Wehrden, Henrik, 2014. "Land sparing versus land sharing: Moving forward," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 149-157.
    12. Anelise Rahmeier Seyffarth, 2016. "The Impact of Rising Ethanol Production on the Brazilian Market for Basic Food Commodities: An Econometric Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 511-536, July.
    13. Choumert Nkolo, Johanna & Combes Motel, Pascale & Guegang Djimeli, Charlain, 2018. "Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature," Ecological Economics, Elsevier, vol. 147(C), pages 230-242.
    14. Dupoux, Marion, 2019. "The land use change time-accounting failure," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    15. Marion Dupoux, 2016. "The land use change time-accounting failure," Working Papers 2016.25, FAERE - French Association of Environmental and Resource Economists.
    16. Sonia SCHWARTZ & Jean Galbert ONGONO OLINGA & Eric Nazindigouba KERE & Pascale COMBES MOTEL & Jean-Louis COMBES & Johanna CHOUMERT & Ariane Manuela AMIN, 2014. "A spatial econometric approach to spillover effects between protected areas and deforestation in the Brazilian Amazon," Working Papers 201406, CERDI.
    17. Garth John Holloway, 2020. "Sustainable Land-Use Pathway Ranking and Selection," Sustainability, MDPI, Open Access Journal, vol. 12(19), pages 1-31, September.
    18. Ceddia, Michele Graziano & Gunter, Ulrich & Pazienza, Pasquale, 2019. "Indigenous peoples' land rights and agricultural expansion in Latin America: A dynamic panel data approach," Forest Policy and Economics, Elsevier, vol. 109(C).
    19. Goetz, Ariane & German, Laura & Hunsberger, Carol & Schmidt, Oscar, 2017. "Do no harm? Risk perceptions in national bioenergy policies and actual mitigation performance," Energy Policy, Elsevier, vol. 108(C), pages 776-790.
    20. Wolfersberger, Julien & Delacote, Philippe & Garcia, Serge, 2015. "An empirical analysis of forest transition and land-use change in developing countries," Ecological Economics, Elsevier, vol. 119(C), pages 241-251.
    21. 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.
    22. 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.
    23. Rebecca Lima Albuquerque Maranhão & Osmar Abílio de Carvalho Júnior & Potira Meirelles Hermuche & Roberto Arnaldo Trancoso Gomes & Concepta Margaret McManus Pimentel & Renato Fontes Guimarães, 2019. "The Spatiotemporal Dynamics of Soybean and Cattle Production in Brazil," Sustainability, MDPI, Open Access Journal, vol. 11(7), pages 1-13, April.
    24. Delzeit, Ruth & Klepper, Gernot & Söder, Mareike, 2016. "An evaluation of approaches for quantifying emissions from indirect land use change," Kiel Working Papers 2035, Kiel Institute for the World Economy (IfW).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caravaggio, Nicola, 2020. "Economic growth and the forest development path: A theoretical re-assessment of the environmental Kuznets curve for deforestation," Forest Policy and Economics, Elsevier, vol. 118(C).
    2. Afawubo, Komivi & Noglo, Yawo Agbényégan, 2019. "Remittances and deforestation in developing countries: Is institutional quality paramount?," Research in Economics, Elsevier, vol. 73(4), pages 304-320.
    3. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    4. Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2007. "Cross-Border Acquisitions, Multinationals and Wage Elasticities," Working Paper Series 709, Research Institute of Industrial Economics.
    5. Nuno Carlos LEITÃO & Muhammad SHAHBAZ, 2012. "Migration and Tourism Demand," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(567)), pages 39-48, February.
    6. Alessandra Canepa & Fawaz Khaled, 2018. "Housing, Housing Finance and Credit Risk," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 6(2), pages 1-23, May.
    7. Simona Galletta & Sebastiano Mazzù & Valeria Naciti & Carlo Vermiglio, 2021. "Sustainable development and financial institutions: Do banks' environmental policies influence customer deposits?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 643-656, January.
    8. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.
    9. Samuel Fosu, 2013. "Banking Competition in Africa: Sub-regional Comparative Studies," Discussion Papers in Economics 13/12, Division of Economics, School of Business, University of Leicester, revised Jun 2013.
    10. Hirokazu Mizobata & Hiroshi Teruyama, 2020. "Factor Adjustments and Liquidity Management: Evidence from Japan's Two Lost Decades and Financial Crises," KIER Working Papers 1043, Kyoto University, Institute of Economic Research.
    11. Baah Aye Kusi & Lydia Adzobu & Alex Kwame Abasi & Kwadjo Ansah-Adu, 2020. "Sectoral Loan Portfolio Concentration and Bank Stability: Evidence from an Emerging Economy," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(1), pages 66-99, April.
    12. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    13. Fawaz, Fadi & Rahnamamoghadam, Masha & Valcarcel, Victor, 2014. "A Refinement of the Relationship between Economic Growth and Income Inequality in Developing Countries," MPRA Paper 55268, University Library of Munich, Germany.
    14. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    15. Martin Andersson & Hans Lööf, 2009. "Learning‐by‐Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
    16. Holger Zemanek & Ansgar Belke & Gunther Schnabl, 2009. "Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness," Discussion Papers of DIW Berlin 895, DIW Berlin, German Institute for Economic Research.
    17. Jing Li & Tsun Se Cheong & Jianfa Shen & Dahai Fu, 2019. "Urbanization And Rural–Urban Consumption Disparity: Evidence From China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 983-996, September.
    18. Charles Yuji Horioka & Junmin Wan, 2007. "The Determinants of Household Saving in China: A Dynamic Panel Analysis of Provincial Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(8), pages 2077-2096, December.
    19. Cristian BARRA & Roberto ZOTTI, 2019. "Bank Performance, Financial Stability And Market Concentration: Evidence From Cooperative And Non‐Cooperative Banks," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 103-139, March.
    20. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.

    More about this item

    Keywords

    Indirect land-use changes; Dynamic effects; Biofuels; Deforestation;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eth:wpswif:13-170. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://edirc.repec.org/data/iwethch.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.