Abstract
Deforestation in the Brazilian Amazon released approximately 5.7 billion tons of CO2 to the atmosphere between 2000 and 2010, and 50–80% of this deforestation was for pasture. Most assume that increasing demand for cattle products produced in Brazil caused this deforestation, but the empirical work to-date on cattle documents only correlations between cattle herd size, pasture expansion, cattle prices, and deforestation. This paper uses panel data on deforestation and foot-and-mouth disease (FMD) status—an exogenous demand shifter—to estimate whether changes in FMD status caused new deforestation in municipalities in the Brazilian Amazon and cerrado biomes during the 2000–2010 period. Results suggest that, on average, becoming certified as FMD-free caused a temporary spike in deforestation in the 2 years after a municipality became FMD-free, but caused subsequent deforestation to decline relative to infected municipalities during the 2000–2010 period.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
