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The Role of Staple Food Prices in Deforestation: Evidence from Cambodia

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  • Steven W. Wilcox
  • David R. Just
  • Ariel Ortiz-Bobea

Abstract

Research on agricultural prices and deforestation has mostly focused on cash crops and export-oriented commodities. We develop a theoretical framework to illustrate how a staple food price shock can lead to deforestation through various channels. We explore our theoretical predictions with data from Cambodia and use a shift-share instrumental variables strategy. We find that shocks to the price of rice explain most of Cambodia’s recent deforestation. To shed light on mechanisms, we use household data to study land use behavior and welfare. Our findings suggest that staple food prices have a more important role in driving deforestation than previously thought.

Suggested Citation

  • Steven W. Wilcox & David R. Just & Ariel Ortiz-Bobea, 2025. "The Role of Staple Food Prices in Deforestation: Evidence from Cambodia," Land Economics, University of Wisconsin Press, vol. 101(1), pages 89-118.
    • Handle: RePEc:uwp:landec:v:101:y:2025:i:1:p:89-118
    Note: DOI: https://doi.org/10.3368/le.101.1.100423-0097R
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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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