Agricultural Productivity and Forest Conservation: Evidence from the Brazilian Amazon

The article elucidates the historical reduction in deforestation in the Brazilian Amazon in the 2000s. The study finds no evidence of trade-offs between agriculture and forest conservation. Instead, it states that deforestation reductions in priority municipalities have been accompanied by increases in livestock production and productivity (livestock / hectare), consistent with a model in which the guidelines force a decrease in the added value of deforestation, causing farmers with credit constraints to shift investments from deforestation to capital investments in agriculture. The article also suggests that in regions with large productivity gaps and where technologies to increase productivity are readily available, efforts to restrict agricultural expansion through better forest conservation policies may induce intensification.

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