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Protected-areas and technological progress in agriculture in the Brazilian Legal Amazon: An analysis of the Porter hypothesis

Author

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  • Jean-Galbert Ongono Olinga

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Pascale Combes Motel

    (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne, CERDI - Centre d'Etudes et de Recherche en Droit de l'Immatériel - Université Paris-Saclay)

  • José Gustavo Feres

    (IPEA - Instituto de Pesquisa Economica Aplicada)

  • Sonia Schwartz

    (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

In this article we analyze whether environmental protection policies in Brazilian municipalities of Legal Amazon drive technical progress in agriculture, thus verifying the Porter hypothesis. Specifically, we investigate whether agricultural firms in municipalities with protected areas (PAs) are technically more performant in agriculture than firms in municipalities without protected areas. We use agricultural census data from 1995/1996 and 2005/2006 and derive estimates of potential production frontier, technical efficiency and total factor productivity as proxies of agricultural performance in a stochastic frontier framework. Next, we run estimates of a panel model with fixed effects, including difference-indifference estimator, to assess the effect of protected-area policies on efficiency, potential production and total factor productivity changes. Results are consistent with significant changes in potential production and total factor productivity. Because the shift of the potential production across time is a result of technical progress, our estimates show that agricultural firms in municipalities with protected areas improved their technical progress more in year 2006 compared to year 1996.

Suggested Citation

  • Jean-Galbert Ongono Olinga & Pascale Combes Motel & José Gustavo Feres & Sonia Schwartz, 2023. "Protected-areas and technological progress in agriculture in the Brazilian Legal Amazon: An analysis of the Porter hypothesis," Working Papers hal-04354596, HAL.
    • Handle: RePEc:hal:wpaper:hal-04354596
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-04354596v1
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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