Skip to main content
×
×
Home

Determinants of Amazon deforestation: the role of off-farm income

  • Claudio Araujo (a1), Jean-Louis Combes (a2) and José Gustavo Féres (a3)
Abstract

This paper aims at assessing the determinants of Amazon deforestation, emphasizing the role played by off-farm income. Initially an economic model is provided which relates off-farm income to deforestation patterns. Subsequently, empirical implications are tested using data from the 2006 Brazilian Agricultural Census. Estimation results suggest that higher off-farm incomes are associated with reduced deforestation rates. In fact, higher off-farm incomes might increase the opportunity cost associated with agricultural activities. The latter option becomes less attractive and farmers dedicate less time to farm activities, thereby reducing deforestation pressure. Results also show that smallholders respond less to the increase in the returns from off-farm activities when compared to largeholders, which matches our hypothesis of labor market imperfections regarding off-farm activities.

Copyright
Corresponding author
*Corresponding author. E-mail: claudio.araujo@uca.fr
References
Hide All
Andersen, L and Reis, EJ (1997) Deforestation, development, and government policy in the Brazilian Amazon: an econometric analysis. Rio de Janeiro, Brazil: Instituto de Pesquisa Econômica Aplicada (IPEA), Texto para discussão 513.
Andrade, SA, Palmer, C and Di Falco, S (2013) Dynamics of indirect land-use change: empirical evidence from Brazil. Journal of Environmental Economics and Management 65, 377393.
Angelsen, A and Kaimowitz, D (1999) Rethinking the causes of deforestation: lessons from economic models. The World Bank Research Observer 14, 7398.
Araujo, C, Araujo-Bonjean, C, Combes, J-L, Motel-Combes, P and Reis, EJ (2009) Property rights and deforestation in the Brazilian Amazon. Ecological Economics 68, 24612468.
Assunção, J, Gandour, C and Rocha, R (2015) Deforestation slowdown in the Brazilian Amazon: prices or policies? Environment and Development Economics 20, 697722.
Banerjee, A (2004) The two poverties. In Dercon, S (ed), Insurance against poverty. Oxford: Oxford University Press, pp. 5975.
Banerjee, A and Newman, A (1991) Risk-bearing and the theory of income distribution. Review of Economics and Studies 58, 211235.
Barbier, EB and Burgess, JC (2001) The economics of tropical deforestation. Journal of Economic Surveys 15, 413433.
Barona, E, Ramankutty, N, Hyman, G and Coomes, OT (2010) The role of pasture and soybean in deforestation of the Brazilian Amazon. Environmental Research Letters 5, 024002.
Bluffstone, RA (1995) The effect of labor market performance on deforestation in developing countries under open access: an example from rural Nepal. Journal of Environmental Economics and Management 29, 4263.
Bryan, G, Chowdory, S and Mobarak, M (2014) Underinvestment in a profitable technology: the case of seasonal migration in Bangladesh. Econometrica 82, 16711748.
Chomitz, KM and Thomas, TS (2003) Determinants of land use in Amazonia: a fine-scale spatial analysis. American Journal of Agricultural Economics 85, 10161028.
Cisneros, E, Zhou, SL and Börner, J (2015) Naming and shaming for conservation: evidence from the Brazilian Amazon. PLoS ONE 10(9): e0136402.
Conte, L and Ferreira Filho, JBS (2007) Substituição de fatores produtivos na produção de soja no Brasil. Revista de Economia e Sociologia Rural 45, 475495.
Ellis, F (2006) Peasant economics: Farm households and economic development, 2nd ed. Cambridge: Cambridge University Press.
Ferraz, C (2001) Explaining agricultural expansion and deforestation: evidence from the Brazilian Amazon, Rio de Janeiro, Brazil: Instituto de Pesquisa Econômica Aplicada (IPEA), Texto para Discussão 828.
Gebara, M-F and Thuault, A (2013) GHG mitigation in Brazil's land use sector: an introduction to the current national policy landscape. Available at http://wri.org/publication/ghg-mitigationbrazil-land-use-sector.
Godar, J, Gardner, T, Tizado, EJ and Pacheco, P (2014) Actor-specific contribution to the deforestation slowdown in the Brazilian Amazon. Procedings of the National Academy of Sciences of the United States of America 111, 1559115596.
Gomes, MF and Rosado, PL (2005) Mudança na produtividade dos fatores de produção da cafeicultura nas principais regiões produtoras do Brasil. Revista de Economia e Sociologia Rural 43, 633655.
Grisa, C, Schneider, S and Conterato, MA (2014) A produção para autoconsumo no Brasil: uma análise a partir do Censo Agropecuário 2006. In Schneider, S and Ferreira, F (eds), Aspectos multidimensionais da agricultura brasileira: diferentes visões do Censo Agropecuário 2006. Brasilia: Instituto de Pesquisa Econômica Aplicada (IPEA), pp. 165186, chapter 6.
Groom, B, Grosjean, P, Kontoleon, A, Swanson, T and Zhang, S (2010) Relaxing rural constraints: a ‘win-win’ policy for poverty and environment in China? Oxford Economic Papers 62, 132156.
IBGE (2009) Censo Agropecuário 2006: Brasil, grandes regiões e unidades da Federação. Rio de Janeiro, Brazil: Instituto Brasileiro de Geografia e Estatística.
Kahn, J and Mcdonald, JA (1995) Third-world debt and tropical deforestation. Ecological Economics 12, 107123.
Kihlstrom, R and Laffont, JJ (1979) A general equilibrium entrepreneurial theory of firm formation based on risk aversion. Journal of Political Economy 87, 719748.
Margulis, S (2003) Causas do desmatamento da Amazônia Brasileira, 1st ed. Brasilia: Banco Mundial.
Nepstad, D, Soares, BS, Merry, ED, Lima, A, Moutinho, P, Carter, J, Browman, M, Cattaneo, A, Rodrigues, H and Schwartzman, S (2009) The end of deforestation in the Brazilian Amazon. Science 326, 13501351.
Nepstad, D, Stickler, C, Alencar, A, Azevedo, A, Swette, B, Bezerra, T, Digiano, M, Shimada, J, Seroa Da Motta, R, Armijo, E, Castello, L, Brando, P, Hansen, MC, McGrath-Horn, M, Carvalho, O and Hess, L (2014) Slowing amazon deforestation through public policy and interventions in beef and soy supply chains. Science 344, 11181123.
Pfaff, A (1999) What drives deforestation in the Brazilian Amazon? evidence from satellite and socioeconomic data. Journal of Environmental Economics and Management 37, 2643.
Pfaff, A, Robalino, J, Herrera, D and Sandoval, C (2015) ‘Protected areas’ impacts on Brazilian Amazon deforestation: Examining conservation –development interactions to inform planning. PLos ONE 10, e0129460.
Reis, EJ and Blanco, FA (2000) The causes of Brazilian Amazon deforestation. In Paolo, M and Vanhanen, H (eds), World Forests: From Deforestation to Transition? Dordrecht, Netherlands: Kluwer Academic Publishers, Springer, pp. 143165.
Sant'anna, AA (2017) Land inequality and deforestation in the Brazilian Amazon. Environment and Development Economics 22, 125.
Shively, GE and Pagiola, S (2004) Agricultural intensification, local labor markets and deforestation in the Phillipines. Environment and Development Economics 9, 241266.
Stock, JH and Yogo, M (2005) Testing for weak instruments in linear IV regression. In Andrews, D and Stock, J (eds), Identification and inference for econometric models: Essays in honor of Thomas J Rothenberg. New York: Cambridge University Press, pp. 80108.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
  • URL: /core/journals/environment-and-development-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed