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Foreign Demand, Soy Exports, and Deforestation
[Demande étrangère, exportations de soja et déforestation]

Author

Listed:
  • Léa Crepin

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • Clément Nedoncelle

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The current paper aims to assess the credibility of demand-side policies to curb deforestation. We tackle this question focusing on the Brazilian soy sector, as conversion from forests to soyproducing areas is a major driver of deforestation. We estimate a firm-level gravity model relating soy exports to destination-specific soy demand. First, we estimate a positive elasticity of soy exports to foreign demand, which confirms the credibility of demand-side policies. Second, we document that the average response hides significant heterogeneities across exporters and across municipalities. Combining export elasticities with soy expansion possibilities, demand-side policies could hence avoid aggregate deforestation, particularly in regions proximate to the Amazon.

Suggested Citation

  • Léa Crepin & Clément Nedoncelle, 2023. "Foreign Demand, Soy Exports, and Deforestation [Demande étrangère, exportations de soja et déforestation]," Working Papers hal-04312450, HAL.
    • Handle: RePEc:hal:wpaper:hal-04312450
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04312450
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