Open-access Effects of deforestation on agricultural productivity in the brazilian legal amazon: evidence from family farming

Abstract

The objective of this study is to measure the effects of deforestation on the agricultural productivity of family farming establishments in the municipalities of the Brazilian Legal Amazon in the years 2006 and 2017. In addition, the effect of deforestation on total factor productivity was estimated. To perform this analysis, an extended Cobb-Douglas production function was assumed. The estimated elasticities show that an increase in the proportion of accumulated deforested area relative to the total area of municipalities in the Legal Amazon resulted in an increase of 0.0288 in agricultural productivity per hectare in 2006 and 0.0229 in 2017. Regarding Total Factor Productivity (TFP), the elasticities were -0.0165 in 2006 and 0.0079 in 2017. Overall, the estimated results suggest that deforestation would generate productivity gains for family farming in the Legal Amazon in the short term, which could intensify it in the long term.

Keywords:
Deforestation; Family farming; Agricultural production function; Agricultural TFP

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Departamento de Economia; Faculdade de Economia, Administração, Contabilidade e Atuária da Universidade de São Paulo (FEA-USP) Av. Prof. Luciano Gualberto, 908 - FEA 01 - Cid. Universitária, CEP: 05508-010, Tel.: (55 11) 3091-5803/5947 - São Paulo - SP - Brazil
E-mail: estudoseconomicos@usp.br
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