IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v175y2024ics0305750x23002991.html
   My bibliography  Save this article

Beyond Deforestation Reductions: Public Disclosure, Land-Use Change and Commodity Sourcing

Author

Listed:
  • Damm, Yannic
  • Cisneros, Elías
  • Börner, Jan

Abstract

Global commodity supply chains contribute significantly to environmental degradation and greenhouse gas emissions. Improving supply chain transparency can create public awareness and encourage relevant actors to improve their ecological footprint. We exploit Brazil’s Priority List policy for the Amazon region, a public disclosure mechanism introduced in 2008 that effectively reduced deforestation rates, to study how land users and commodity traders respond to the corresponding reputational risk exposure. Specifically, we combine remotely sensed land use data with spatio-temporally disaggregated soy trade statistics covering 15 years and 770 municipalities to measure the effect of priority listing on land-use change, sourcing patterns, and trade destinations. Using the Generalized Synthetic Control method, we find that priority listing led to a sizeable drop in deforestation and a corresponding reduction in pasture expansion. At the same time, soy expansion increased significantly, but instead of expanding into natural forests, it mostly replaced existing pastures and other cropland. The additional soy production was exported predominantly to China, whereas exports to the EU stagnated.

Suggested Citation

  • Damm, Yannic & Cisneros, Elías & Börner, Jan, 2024. "Beyond Deforestation Reductions: Public Disclosure, Land-Use Change and Commodity Sourcing," World Development, Elsevier, vol. 175(C).
  • Handle: RePEc:eee:wdevel:v:175:y:2024:i:c:s0305750x23002991
    DOI: 10.1016/j.worlddev.2023.106481
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X23002991
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2023.106481?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Eric F. Lambin & Holly K. Gibbs & Robert Heilmayr & Kimberly M. Carlson & Leonardo C. Fleck & Rachael D. Garrett & Yann le Polain de Waroux & Constance L. McDermott & David McLaughlin & Peter Newton &, 2018. "The role of supply-chain initiatives in reducing deforestation," Nature Climate Change, Nature, vol. 8(2), pages 109-116, February.
    3. Giulia Sesini & Cinzia Castiglioni & Edoardo Lozza, 2020. "New Trends and Patterns in Sustainable Consumption: A Systematic Review and Research Agenda," Sustainability, MDPI, vol. 12(15), pages 1-25, July.
    4. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    5. Nicolas Koch & Erasmus K H J zu Ermgassen & Johanna Wehkamp & Francisco J B Oliveira Filho & Gregor Schwerhoff, 2019. "Agricultural Productivity and Forest Conservation: Evidence from the Brazilian Amazon," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(3), pages 919-940.
    6. Hendrix, Cullen S. & Wong, Wendy H., 2013. "When Is the Pen Truly Mighty? Regime Type and the Efficacy of Naming and Shaming in Curbing Human Rights Abuses," British Journal of Political Science, Cambridge University Press, vol. 43(3), pages 651-672, July.
    7. le Polain de Waroux, Yann & Garrett, Rachael D. & Graesser, Jordan & Nolte, Christoph & White, Christopher & Lambin, Eric F., 2019. "The Restructuring of South American Soy and Beef Production and Trade Under Changing Environmental Regulations," World Development, Elsevier, vol. 121(C), pages 188-202.
    8. Sills, Erin & Pfaff, Alexander & Andrade, Luiza & Kirkpatrick, Justin & Dickson, Rebecca, 2020. "Investing in local capacity to respond to a federal environmental mandate: Forest & economic impacts of the Green Municipality Program in the Brazilian Amazon," World Development, Elsevier, vol. 129(C).
    9. Kurdistan Wns HamaAli & Subhi R. M. Zeebaree, 2021. "Resources Allocation for Distributed Systems: A Review," International Journal of Science and Business, IJSAB International, vol. 5(2), pages 76-88.
    10. Xu, Yiqing, 2017. "Generalized Synthetic Control Method: Causal Inference with Interactive Fixed Effects Models," Political Analysis, Cambridge University Press, vol. 25(1), pages 57-76, January.
    11. Gardner, T.A. & Benzie, M. & Börner, J. & Dawkins, E. & Fick, S. & Garrett, R. & Godar, J. & Grimard, A. & Lake, S. & Larsen, R.K. & Mardas, N. & McDermott, C.L. & Meyfroidt, P. & Osbeck, M. & Persson, 2019. "Transparency and sustainability in global commodity supply chains," World Development, Elsevier, vol. 121(C), pages 163-177.
    12. Kosrat Dlshad Ahmed & Subhi R. M. Zeebaree, 2021. "Resource Allocation in Fog Computing: A Review," International Journal of Science and Business, IJSAB International, vol. 5(2), pages 54-63.
    13. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    14. Assunção, Juliano & Rocha, Romero, 2019. "Getting greener by going black: the effect of blacklisting municipalities on Amazon deforestation," Environment and Development Economics, Cambridge University Press, vol. 24(2), pages 115-137, April.
    15. Lima, Mendelson & Silva Junior, Carlos Antonio da & Rausch, Lisa & Gibbs, Holly K. & Johann, Jerry Adriani, 2019. "Demystifying sustainable soy in Brazil," Land Use Policy, Elsevier, vol. 82(C), pages 349-352.
    16. Jushan Bai, 2009. "Panel Data Models With Interactive Fixed Effects," Econometrica, Econometric Society, vol. 77(4), pages 1229-1279, July.
    17. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    18. Wehner, Joachim & de Renzio, Paolo, 2013. "Citizens, Legislators, and Executive Disclosure: The Political Determinants of Fiscal Transparency," World Development, Elsevier, vol. 41(C), pages 96-108.
    19. Daniele Asioli & Jessica Aschemann-Witzel & Rodolfo M. Nayga, 2020. "Sustainability-Related Food Labels," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 171-185, October.
    20. Godar, Javier & Persson, U. Martin & Tizado, E. Jorge & Meyfroidt, Patrick, 2015. "Towards more accurate and policy relevant footprint analyses: Tracing fine-scale socio-environmental impacts of production to consumption," Ecological Economics, Elsevier, vol. 112(C), pages 25-35.
    21. Elías Cisneros & Sophie Lian Zhou & Jan Börner, 2015. "Naming and Shaming for Conservation: Evidence from the Brazilian Amazon," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-24, September.
    22. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    23. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    24. Noémi Kreif & Richard Grieve & Dominik Hangartner & Alex James Turner & Silviya Nikolova & Matt Sutton, 2016. "Examination of the Synthetic Control Method for Evaluating Health Policies with Multiple Treated Units," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1514-1528, December.
    25. Jorge Hargrave & Krisztina Kis-Katos, 2013. "Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for the 2000s," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 471-494, April.
    26. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    27. dos Santos Massoca, Paulo Eduardo & Brondízio, Eduardo Sonnewend, 2022. "National policies encounter municipal realities: A critical analysis of the outcomes of the List of Priority Municipalities in curbing deforestation in the Brazilian Amazon," World Development, Elsevier, vol. 158(C).
    28. Aija Rusina, 2020. "Name and shame? Evidence from the European Union tax haven blacklist," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1364-1424, December.
    29. Paul J. Ferraro & Juan José Miranda, 2017. "Panel Data Designs and Estimators as Substitutes for Randomized Controlled Trials in the Evaluation of Public Programs," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 281-317.
    30. , Nabila, 2021. "Improve The Quality Of Human Resources In Indonesia," OSF Preprints tpkhv, Center for Open Science.
    Full references (including those not matched with items on IDEAS)

    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. Léa Crepin, 2022. "Do forest conservation policies undermine the soybean sector in the Brazilian Amazon? Evidence from the blacklisting of municipalities," Working Papers 2022.07, FAERE - French Association of Environmental and Resource Economists.
    2. Simon Freyaldenhoven & Christian Hansen & Jorge Perez Perez & Jesse Shapiro, 2021. "Visualization, Identification, and stimation in the Linear Panel Event-Study Design," Working Papers 21-44, Federal Reserve Bank of Philadelphia.
    3. Hans-Bernd Schaefer & Rok Spruk, 2024. "Islamic Law, Western European Law and the Roots of Middle East's Long Divergence: a Comparative Empirical Investigation (800-1600)," Papers 2401.14435, arXiv.org, revised Mar 2024.
    4. Isabelle Chort & Berk Öktem, 2024. "Agricultural shocks, coping policies and deforestation: Evidence from the coffee leaf rust epidemic in Mexico," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1020-1057, May.
    5. Crepin, Léa, 2024. "Do forest conservation policies undermine the soybean sector in the Brazilian Amazon? Evidence from the priority listing of municipalities," Ecological Economics, Elsevier, vol. 224(C).
    6. Miranda, Bruno Varella & de Oliveira, Gustavo Magalhães, 2023. "Assessing the performance of voluntary environmental agreements under high monitoring costs: Evidence from the Brazilian Amazon," Ecological Economics, Elsevier, vol. 214(C).
    7. Rafaty, R. & Dolphin, G. & Pretis, F., 2020. "Carbon pricing and the elasticity of CO2 emissions," Cambridge Working Papers in Economics 20116, Faculty of Economics, University of Cambridge.
    8. Dmitry Arkhangelsky & Guido Imbens, 2023. "Causal Models for Longitudinal and Panel Data: A Survey," Papers 2311.15458, arXiv.org, revised Jun 2024.
    9. Luya Wang & Jeffrey S. Racine & Qiaoyu Wang, 2024. "Bootstrap Inference on a Factor Model Based Average Treatment Effects Estimator," Department of Economics Working Papers 2024-03, McMaster University.
    10. Joakim Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Working Papers 2023.10, FAERE - French Association of Environmental and Resource Economists.
    11. Roxanne Kovacs & Maurice Dunaiski & Janne Tukiainen, 2023. "The effect of compulsory face mask policies on community mobility in Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(4), pages 1027-1055, October.
    12. Callaway, Brantly & Karami, Sonia, 2023. "Treatment effects in interactive fixed effects models with a small number of time periods," Journal of Econometrics, Elsevier, vol. 233(1), pages 184-208.
    13. Dmitry Arkhangelsky & David Hirshberg, 2023. "Large-Sample Properties of the Synthetic Control Method under Selection on Unobservables," Papers 2311.13575, arXiv.org, revised Dec 2023.
    14. Joakim A. Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Finance and Economics Discussion Series 2023-066, Board of Governors of the Federal Reserve System (U.S.).
    15. Youngho Kim, 2024. "Payments for Ecosystem Services Programs and Climate Change Adaptation in Agriculture," Economics Series Working Papers 1054, University of Oxford, Department of Economics.
    16. repec:ags:aaea22:335971 is not listed on IDEAS
    17. van Rijn, Jordan, 2024. "The effects of membership expansion on credit union risk and returns," International Review of Financial Analysis, Elsevier, vol. 93(C).
    18. Philipp Barteska & Jay Euijung Lee, 2024. "Bureaucrats and the Korean export miracle," Discussion Papers 2024-11, Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP).
    19. Chakraborty Avinandan & Doremus Jacqueline & Stith Sarah, 2021. "The effects of recreational cannabis access on labor markets: evidence from Colorado," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-86, January.
    20. Eli Ben‐Michael & Avi Feller & Jesse Rothstein, 2022. "Synthetic controls with staggered adoption," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 84(2), pages 351-381, April.
    21. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.

    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:eee:wdevel:v:175:y:2024:i:c:s0305750x23002991. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.