RT Journal Article
SR Electronic
T1 Agricultural Displacement and Deforestation Leakage in the Brazilian Legal Amazon
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 155
OP 179
DO 10.3368/wple.97.1.040219-0045R
VO 97
IS 1
A1 Fanny Moffette
A1 Holly K. Gibbs
YR 2021
UL http://le.uwpress.org/content/97/1/155.abstract
AB 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—mainly pasture—in the less regulated ecosystem. The spillovers from the Cattle Agreements, three years after the Soy Moratorium, resulted in increased deforestation.