IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v24y2019i02p138-156_00.html
   My bibliography  Save this article

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

Author

Listed:
  • Araujo, Claudio
  • Combes, Jean-Louis
  • Féres, José Gustavo

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.

Suggested Citation

  • Araujo, Claudio & Combes, Jean-Louis & Féres, José Gustavo, 2019. "Determinants of Amazon deforestation: the role of off-farm income," Environment and Development Economics, Cambridge University Press, vol. 24(2), pages 138-156, April.
    • Handle: RePEc:cup:endeec:v:24:y:2019:i:02:p:138-156_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X18000359/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Shively, Gerald & Pagiola, Stefano, 2004. "Agricultural intensification, local labor markets, and deforestation in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 9(2), pages 241-266, May.
    2. Gomes, Marília F. Maciel & Rosado, Patrícia Lopes, 2005. "Mudança na produtividade dos fatores de produção da cafeicultura nas principais regiões produtoras do Brasil," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 43(4), pages 1-23, December.
    3. de Carvalho Filho, Irineu Evangelista, 2008. "Old-age benefits and retirement decisions of rural elderly in Brazil," Journal of Development Economics, Elsevier, vol. 86(1), pages 129-146, April.
    4. Lykke E. Andersen & Eustáquio J. Reis, 2015. "Deforestation, Development, and Government Policy in the Brazilian Amazon: an Econometric Analysis," Discussion Papers 0069, Instituto de Pesquisa Econômica Aplicada - IPEA.
    5. repec:bla:jecsur:v:15:y:2001:i:3:p:413-33 is not listed on IDEAS
    6. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank, vol. 14(1), pages 73-98, February.
    7. 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.
    8. Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amazônia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
    9. Claudio Araujo & Catherine Araujo Bonjean, 1999. "Mesure de l'efficacitééconomique des modes de faire valoir au Brésil," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 181-197, July.
    10. Andrade de Sá, Saraly & Palmer, Charles & di Falco, Salvatore, 2013. "Dynamics of indirect land-use change: Empirical evidence from Brazil," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 377-393.
    11. E. B. Barbier & J. C. Burgess, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
    12. Claudio Ferraz, 2015. "Explaining Agriculture Expansion and Deforestation: Evidence from the Brazilian Amazon – 1980/98," Discussion Papers 0106, Instituto de Pesquisa Econômica Aplicada - IPEA.
    13. 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.
    14. Bluffstone Randall A., 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, Elsevier, vol. 29(1), pages 42-63, July.
    15. Ben Groom & Pauline Grosjean & Andreas Kontoleon & Timothy Swanson & Shiqiu Zhang, 2010. "Relaxing rural constraints: a 'win-win' policy for poverty and environment in China?," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 132-156, January.
    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. Antoine Leblois, 2021. "Mitigating the impact of bad rainy seasons in poor agricultural regions to tackle deforestation," Post-Print hal-03111007, HAL.
    2. Philippe Delacote & Julia Girard & Antoine Leblois, 2019. "Agricultural households' adaptation to weather shocks in Sub-Saharan Africa: What implications for land-use change and deforestation," Working Papers 1902, Chaire Economie du climat.
    3. Apeti, Ablam Estel & N’Doua, Bossoma Doriane, 2023. "The impact of timber regulations on timber and timber product trade," Ecological Economics, Elsevier, vol. 213(C).
    4. Ferreira, Marcelo Dias Paes & Féres, José Gustavo, 2020. "Farm size and Land use efficiency in the Brazilian Amazon," Land Use Policy, Elsevier, vol. 99(C).
    5. Ferreira, M. & Feres, J.G., 2018. "Farm Size and Productive Efficiency in Brazilian Amazon," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277289, International Association of Agricultural Economists.
    6. Zabala, Aiora & Barrios, Luis Enrique García & Pascual, Unai, 2022. "From participation to commitment in silvopastoral programmes: Insights from Chiapas, Mexico," Ecological Economics, Elsevier, vol. 200(C).
    7. Silva, Felipe & Perrin, Richard K. & Fulginiti, Lilyan E., 2016. "Tradeoffs between forests and farming in the Legal Amazon Region of Brazil," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230040, Southern Agricultural Economics Association.

    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. Sébastien Marchand, 2011. "Technical Efficiency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest," Working Papers halshs-00552981, HAL.
    2. 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.
    3. Galinato, Gregmar I. & Galinato, Suzette P., 2013. "The short-run and long-run effects of corruption control and political stability on forest cover," Ecological Economics, Elsevier, vol. 89(C), pages 153-161.
    4. Sébastien MARCHAND, 2010. "Technical Ef?ciency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest," Working Papers 201012, CERDI.
    5. 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.
    6. Robert Innes & George Frisvold, 2009. "The Economics of Endangered Species," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 485-512, September.
    7. Faria, Weslem & de Almeida, Alexandre, 2013. "Relationship between Openness to Trade and Deforestation: Empirical Evidence from the Brazilian Amazon," TD NEREUS 3-2013, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    8. Weslem Rodrigues Faria & Admir Antônio Betarelli Júnior & Rosa Lívia Gonçalves Montenegro, 2019. "Multidimensional characteristics and deforestation: an analysis for the Brazilian Legal Amazon," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 1959-1979, July.
    9. Harding, Torfinn & Herzberg, Julika & Kuralbayeva, Karlygash, 2021. "Commodity prices and robust environmental regulation: Evidence from deforestation in Brazil," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    10. Faria, Weslem Rodrigues & Almeida, Alexandre Nunes, 2016. "Relationship between openness to trade and deforestation: Empirical evidence from the Brazilian Amazon," Ecological Economics, Elsevier, vol. 121(C), pages 85-97.
    11. Lina O Anderson & Samantha De Martino & Torfinn Harding & Karlygash Kuralbayeva & Andre Lima, 2016. "The Effects of Land Use Regulation on Deforestation:," OxCarre Working Papers 172, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    12. Damette, Olivier & Delacote, Philippe, 2012. "On the economic factors of deforestation: What can we learn from quantile analysis?," Economic Modelling, Elsevier, vol. 29(6), pages 2427-2434.
    13. Pascale COMBES MOTEL & Jean-Louis COMBES & Catherine ARAUJO BONJEAN & Claudio ARAUJO & Eustaquio J. REIS, 2010. "Does Land Tenure Insecurity Drive Deforestation in the Brazilian Amazon?," Working Papers 201013, CERDI.
    14. 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.
    15. Claudio Ferraz, 2015. "Explaining Agriculture Expansion and Deforestation: Evidence from the Brazilian Amazon – 1980/98," Discussion Papers 0106, Instituto de Pesquisa Econômica Aplicada - IPEA.
    16. Danilo Camargo Igliori, 2006. "Deforestation, Growth And Agglomeration Effects: Evidence From Agriculture In The Brazilian Amazon," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 102, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Weslem Faria & Alexandre Almeida, 2011. "Agricultural Expansion, Openness to Trade and Deforestation at the Brazilian Amazon: A Spatial Econometric Analysis," ERSA conference papers ersa11p1013, European Regional Science Association.
    18. Yoshito Takasaki, 2011. "Economic models of shifting cultivation: a review," Tsukuba Economics Working Papers 2011-006, Faculty of Humanities and Social Sciences, University of Tsukuba.
    19. Andrade de Sá, Saraly & Palmer, Charles & di Falco, Salvatore, 2013. "Dynamics of indirect land-use change: Empirical evidence from Brazil," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 377-393.
    20. Klemick, Heather, 2011. "Constraints or Cooperation? Determinants of Secondary Forest Cover Under Shifting Cultivation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(3), pages 471-487, December.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    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:cup:endeec:v:24:y:2019:i:02:p:138-156_00. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.