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The super-rich and cropland expansion via direct investments in agriculture

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  • M. Graziano Ceddia

    (University of Bern)

Abstract

Cropland expansion represents an important cause of tropical deforestation, contributing to the loss of ecosystems’ functions. Flex-crops (for example, oil palm, soy and sugar cane) account for an increasing share of cropland and contribute considerably to carbon emissions and biodiversity loss. Various forms of inequality have been shown to affect agricultural expansion, yet the effect of wealth concentration among the super-rich is understudied. Here I show how, over the period 1991–2014, the large amount of wealth in the hands of high-net-worth individuals (HNWI) stimulated foreign direct investments in agriculture in Latin America and Southeast Asia. This, in turn, drove the expansion of flex-crops areas. The combination of these two effects implies that a 1% increase in the wealth of HNWI generated an expansion of the flex-crops area share of up to 2.4–10%. The results point to the urgency of addressing wealth inequality to protect the remaining forests.

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  • M. Graziano Ceddia, 2020. "The super-rich and cropland expansion via direct investments in agriculture," Nature Sustainability, Nature, vol. 3(4), pages 312-318, April.
    • Handle: RePEc:nat:natsus:v:3:y:2020:i:4:d:10.1038_s41893-020-0480-2
    DOI: 10.1038/s41893-020-0480-2
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    Cited by:

    1. Bill Pritchard & Elen Welch & Guillermo Umana Restrepo & Lachlan Mitchell, 2023. "How do financialised agri-corporate investors acquire farmland? Analysing land investment in an Australian agricultural region, 2004–2019," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 1037-1058.
    2. Benedikt Bruckner & Klaus Hubacek & Yuli Shan & Honglin Zhong & Kuishuang Feng, 2022. "Impacts of poverty alleviation on national and global carbon emissions," Nature Sustainability, Nature, vol. 5(4), pages 311-320, April.
    3. Zepharovich, Elena & Ceddia, M. Graziano & Rist, Stephan, 2021. "Social multi-criteria evaluation of land-use scenarios in the Chaco Salteño: Complementing the three-pillar sustainability approach with environmental justice," Land Use Policy, Elsevier, vol. 101(C).
    4. Joel Millward-Hopkins, 2022. "Inequality can double the energy required to secure universal decent living," Nature Communications, Nature, vol. 13(1), pages 1-9, December.

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