@article {Moffette155, author = {Fanny Moffette and Holly K. Gibbs}, title = {Agricultural Displacement and Deforestation Leakage in the Brazilian Legal Amazon}, volume = {97}, number = {1}, pages = {155--179}, year = {2021}, doi = {10.3368/wple.97.1.040219-0045R}, publisher = {University of Wisconsin Press}, abstract = {Does environmental policy aiming to reduce deforestation induce displacement of existing agricultural activities? To shed light on this question, we exploit a difference-in-differences strategy with a distance-based treatment to examine whether two policies in the Brazilian Amazon, the Soy Moratorium and the Zero-Deforestation Cattle Agreements, have displaced production or deforestation into neighboring regions. Our results show evidence that the Soy Moratorium induced soy spillovers onto previously cleared land{\textemdash}mainly pasture{\textemdash}in the less regulated ecosystem. The spillovers from the Cattle Agreements, three years after the Soy Moratorium, resulted in increased deforestation.}, issn = {0023-7639}, URL = {https://le.uwpress.org/content/97/1/155}, eprint = {https://le.uwpress.org/content/97/1/155.full.pdf}, journal = {Land Economics} }