RT Journal Article
SR Electronic
T1 The Role of Staple Food Prices in Deforestation
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 100423-0097R
DO 10.3368/le.101.1.100423-0097R
A1 Wilcox, Steven W.
A1 Just, David R.
A1 Ortiz-Bobea, Ariel
YR 2024
UL http://le.uwpress.org/content/early/2024/08/15/le.101.1.100423-0097R.abstract
AB Research on agricultural prices and deforestation has mostly focused on cash crops and export-oriented commodities. We develop a theoretical framework to illustrate how a staple food price shock can lead to deforestation through various channels. We explore our theoretical predictions with data from Cambodia and employ a shift-share instrumental variables strategy. We find that shocks to the price of rice explain most of Cambodia’s recent deforestation. To shed light on mechanisms, we use household data to study land use behavior and welfare. Our findings suggest that staple food prices have a more important role in driving deforestation than previously thought.