The Effect of Rural Credit on Deforestation: Evidence from the Brazilian Amazon-Reference-Cited by-同舟云学术

The Effect of Rural Credit on Deforestation: Evidence from the Brazilian Amazon

Published:2019-11-22 Issue:626 Volume:130 Page:290-330
ISSN:0013-0133
Container-title:The Economic Journal
language:en
Short-container-title:

Author:

Assunção Juliano¹,Gandour Clarissa²,Rocha Romero³,Rocha Rudi⁴

Affiliation:

1. Climate Policy Initiative/Núcleo de Avaliação de Políticas Climáticas, PUC-Rio and Department of Economics, PUC-Rio

2. Climate Policy Initiative/Núcleo de Avaliação de Políticas Climáticas, PUC-Rio

3. Institute of Economics, Federal University of Rio de Janeiro (UFRJ)

4. São Paulo School of Business Administration, Getulio Vargas Foundation (FGV EAESP)

Abstract

Abstract In 2008, the Brazilian government made the concession of rural credit in the Amazon conditional upon stricter requirements as an attempt to curb forest clearings. This article studies the impact of this innovative policy on deforestation. Difference-in-differences estimations based on a panel of municipalities show that the policy change led to a substantial reduction in deforestation, mostly in municipalities where cattle ranching is the leading economic activity. The results suggest that the mechanism underlying these effects was a restriction in access to rural credit, one of the main support mechanisms for agricultural production in Brazil.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

Link

http://academic.oup.com/ej/advance-article-pdf/doi/10.1093/ej/uez060/31534869/uez060.pdf

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