Is There a Tradeoff between Forest Expansion and Agriculture?

Abstract

Expansion of forest area through afforestation and reforestation is a popular strategy to mitigate climate change. However, the vast land area required suggests a potentially large tradeoff between forest expansion and agriculture. From 2003-2010, one of the largest forest expansion programs in India was implemented in Rajasthan state. We estimate the effects of this program on the agricultural sector using two-way fixed effects and synthetic difference-in-differences approaches, finding the program had no impact on cultivated area in Rajasthan. Moreover, agricultural production and yield increased following the program’s implementation. We discuss implications for afforestation and reforestation as climate mitigation strategies.