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Agricultural Trade and Deforestation: the Role of New Roads

Author

Listed:
  • Douglas Gollin

    (CEPR - Center for Economic Policy Research, Tufts University)

  • Julien Wolfersberger

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Chaire économie du climat - Chaire économie du climat, AgroParisTech)

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 up to one quarter 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. Turning to the future, we examine the potential impact of Brazil's official infrastructure plans, and we quantify the ecological costs of improving market access in currently isolated areas.

Suggested Citation

  • Douglas Gollin & Julien Wolfersberger, 2024. "Agricultural Trade and Deforestation: the Role of New Roads," Working Papers hal-04171124, HAL.
    • Handle: RePEc:hal:wpaper:hal-04171124
    Note: View the original document on HAL open archive server: https://agroparistech.hal.science/hal-04171124v3
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    File URL: https://agroparistech.hal.science/hal-04171124v3/document
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