IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04934081.html
   My bibliography  Save this paper

Agricultural Exports, Market Power, and Deforestation
[Exportations agricoles, pouvoir de marché et déforestation]

Author

Listed:
  • 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)

  • Philippe Delacote

    (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - 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)

  • Léa Crepin

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - 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)

Abstract

This paper explores how market structure shapes agricultural production and environmental outcomes, particularly deforestation. We focus on the soybean export sector in Brazil-a major driver of deforestation. We show that large exporters, operating within an oligopolistic market, exert market power by purchasing soybeans at lower prices (markdown) rather than raising prices for foreign consumers. Providing both theoretical and empirical evidence, our results suggest that this markdown behavior reduces soybean production and deforestation. Using data from 2004-2017, we find that higher market concentration, as measured by the Herfindahl-Hirschman Index (HHI), is associated with lower soybean production and deforestation. Our findings highlight the importance of trade-related supply chains in understanding deforestation dynamics.

Suggested Citation

  • Clément Nedoncelle & Philippe Delacote & Léa Crepin, 2024. "Agricultural Exports, Market Power, and Deforestation [Exportations agricoles, pouvoir de marché et déforestation]," Working Papers hal-04934081, HAL.
    • Handle: RePEc:hal:wpaper:hal-04934081
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04934081v1
    as

    Download full text from publisher

    File URL: https://hal.inrae.fr/hal-04934081v1/document
    Download Restriction: no
    ---><---

    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:hal:wpaper:hal-04934081. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.