Agricultural Expansion, Openness to Trade and Deforestation at the Brazilian Amazon: A Spatial Econometric Analysis
The Brazilian Amazon is a large piece of land that hosts only 12% of Brazilian population. Even this low figure and people mostly living in urban areas, the overexploitation of the forest resources driven by economic activities seems to be out-of-control. In the 1970s, abundant government subsidies/incentives for mining, crop and beef production, and gigantic road projects provided infra-structure to the new settlers coming from other parts of the country. For the last decades, frontier regions of Amazon have been a major scene of land conflicts between farmers, squatters, miners, indigenous group and public authorities. Furthermore, from the openness of economy in the 1990s, we also find some evidence that the very attractive demand of international markets for timber, and recently, the attractive international prices of agricultural commodities are determinants that have been also pushing to more deforestation through the conversion of forest to new agricultural areas. The main objective of this paper is to investigate how international trade has affected the dynamics of deforestation in the Brazilian Amazon. The analysis also focuses on the expansion of crop and cattle activities, and other determinants such as gross domestic product, demographic density and roads. To achieve such goal, we combine standard econometrics with the spatial econometrics in order to capture, across the space, the socio-economic interactions among the agents in their interrelated economic system. The data used in this study correspond to a balanced panel for 732 counties from 2000 to 2007 totalizing 6,256 observations. The main findings suggest that the openness to trade indicator used--export plus import over GDP--goes up, the result is more deforestation. We also find that beef cattle and the production of soybeans, sugarcane and cotton are pushing to more deforestation in the region. The extraction of firewood and timber had both a positive and significant in impact on deforestation, as expected. Moreover, as the GDP goes up, it pushes to more deforestation as well. On the other hand, as the square of GDP goes up indicate less deforestation, supporting, to some extent, the environmental Kuznets Curve hypothesis.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Claudio Araujo & Catherine Araujo Bonjean & Jean-Louis Combes & Pascale Combes Motel & Eustaquio J. Reis, 2011.
"Property rights and deforestation in the Brazilian Amazon,"
- Araujo, Claudio & Bonjean, Catherine Araujo & Combes, Jean-Louis & Combes Motel, Pascale & Reis, Eustaquio J., 2009. "Property rights and deforestation in the Brazilian Amazon," Ecological Economics, Elsevier, vol. 68(8-9), pages 2461-2468, June.
- Claudio ARAUJO & Catherine ARAUJO BONJEAN & Jean-Louis COMBES & Pascale COMBES MOTEL & Eustaquio J. REIS, 2008. "Property rights and deforestation in the Brazilian Amazon," Working Papers 200820, CERDI.
- Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
- Diana Weinhold & Eustaquio J. Reis, 2001. "Model Evaluation and Causality Testing in Short Panels: The Case of Infrastructure Provision and Population Growth in the Brazilian Amazon," Journal of Regional Science, Wiley Blackwell, vol. 41(4), pages 639-657.
- Ramón López & Gregmar I. Galinato, 2005. "Trade Policies, Economic Growth, and the Direct Causes of Deforestation," Land Economics, University of Wisconsin Press, vol. 81(2).
- Jean-Louis Arcand & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2011.
"Deforestation and the Real Exchange Rate,"
- Jean-Louis ARCAND & Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 2005. "Deforestation and the Real Exchange Rate," Working Papers 200533, CERDI.
- Jean-Louis ARCAND & Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT, 2003. "Deforestation and the Real Exchange Rate," Working Papers 200332, CERDI.
- Badi H. Baltagi & Dong Li, 2006.
"Prediction in the Panel Data Model with Spatial Correlation: The Case of Liquor,"
Center for Policy Research Working Papers
84, Center for Policy Research, Maxwell School, Syracuse University.
- Badi Baltagi & Dong Li, 2006. "Prediction in the Panel Data Model with Spatial Correlation: the Case of Liquor," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(2), pages 175-185.
- Alexander Pfaff & Juan Robalino & Robert Walker & Steven Aldrich & Marcellus Caldas & Eustaquio Reis & Stephen Perz & Claudio Bohrer & Eugenio Arima & William Laurance & Kathryn Kirby, 2007. "Road Investments, Spatial Spillovers, And Deforestation In The Brazilian Amazon," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 109-123.
- Kelley Pace, R. & Barry, Ronald, 1997. "Sparse spatial autoregressions," Statistics & Probability Letters, Elsevier, vol. 33(3), pages 291-297, May.
- Badi H. Baltagi & Georges Bresson & Alain Pirotte, 2006.
"Panel Unit Root Tests and Spatial Dependence,"
Center for Policy Research Working Papers
88, Center for Policy Research, Maxwell School, Syracuse University.
- Susana Ferreira, 2004. "Deforestation, Property Rights, and International Trade," Land Economics, University of Wisconsin Press, vol. 80(2), pages 174-193.
- Walker, Robert & Moran, Emilio & Anselin, Luc, 2000. "Deforestation and Cattle Ranching in the Brazilian Amazon: External Capital and Household Processes," World Development, Elsevier, vol. 28(4), pages 683-699, April.
- Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
- Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
- Edward B. Barbier, 2001. "The Economics of Tropical Deforestation and Land Use: An Introduction to the Special Issue," Land Economics, University of Wisconsin Press, vol. 77(2), pages 155-171.
- Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amaz�nia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
- Baltagi, Badi H. & Heun Song, Seuck & Cheol Jung, Byoung & Koh, Won, 2007. "Testing for serial correlation, spatial autocorrelation and random effects using panel data," Journal of Econometrics, Elsevier, vol. 140(1), pages 5-51, September.
- Marcelo Bentes Diniz & José Nilo de Oliveira Junior & Nicolino Trompieri Neto & Márcia Jucá Teixeira Diniz, 2009. "Causas do desmatamento da Amazônia: uma aplicação do teste de causalidade de Granger acerca das principais fontes de desmatamento nos municípios da Amazônia Legal brasileira [Causes of deforestation i," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 19(1), pages 121-151, January-A.
- Mertens, B. & Poccard-Chapuis, R. & Piketty, M. -G. & Lacques, A. -E. & Venturieri, A., 2002. "Crossing spatial analyses and livestock economics to understand deforestation processes in the Brazilian Amazon: the case of Sao Felix do Xingu in South Para," Agricultural Economics, Blackwell, vol. 27(3), pages 269-294, November.
- LE GALLO, Julie & ERTUR, Cem, 2000. "Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2000-09, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
- repec:cup:cbooks:9780521811972 is not listed on IDEAS
- Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, vol. 53(1), pages 17-39, June.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1013. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.