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The Conservation versus Production Trade-off: Does Livestock Intensification Increase Deforestation? The Case of the Brazilian Amazon

Author

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  • Molina Vale, Petterson

Abstract

More cattle, less deforestation? Land use intensification in the Amazon is an unexpected phenomenon. Theories of hollow frontier, speculative behaviour and boom-bust all share the prediction that livestock production will remain largely extensive. Yet between 1996 and 2006 productivity of cattle grew by an astounding 57.5% in the average Amazon municipality. Does rising land productivity of cattle increase deforestation? I use secondary data and spatial econometrics to look for evidence of a positive relation between cattle intensification and deforestation (‘rebound effect’). The reduced-form model I employ is based on a spatial econometric specification by Arima et al. (2011) and uses panel data at the municipality-level. I show that mounting productivity in consolidated areas has been associated with lower deforestation both in frontier and consolidated municipalities. This suggests that any process of out-migration spurred by the rising productivity is insufficient to have a positive impact on deforestation.

Suggested Citation

  • Molina Vale, Petterson, 2015. "The Conservation versus Production Trade-off: Does Livestock Intensification Increase Deforestation? The Case of the Brazilian Amazon," Climate Change and Sustainable Development 199337, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:199337
    DOI: 10.22004/ag.econ.199337
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    File URL: https://ageconsearch.umn.edu/record/199337/files/NDL2015-020.pdf
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    Cited by:

    1. Francisco Fontes & Charles Palmer, 2017. "Was von Thünen right? Cattle intensification and deforestation in Brazil," GRI Working Papers 261, Grantham Research Institute on Climate Change and the Environment.

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