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Contracting, market access and deforestation

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  • Abman, Ryan
  • Lundberg, Clark

Abstract

We study the impacts of market access on forest loss in Ghana through a program designed to increase smallholder participation in oil palm commodity markets. Improved market access is facilitated through production contracts in which smallholders receive credit to establish production, a guaranteed price and quantity for the contract duration, and output pickup at the village. Using a variety of difference-in-differences approaches, we find substantial increases in forest loss in targeted villages following the introduction of the contracting program. The findings suggest that the ecological impacts of reforms to market access may be sizeable.

Suggested Citation

  • Abman, Ryan & Lundberg, Clark, 2024. "Contracting, market access and deforestation," Journal of Development Economics, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:deveco:v:168:y:2024:i:c:s030438782400018x
    DOI: 10.1016/j.jdeveco.2024.103269
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    More about this item

    Keywords

    Market access; Deforestation; Credit constraints; Contracting; Ghana; Oil palm;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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