PRICES, LAND USE AND DEFORESTATION: EVIDENCE FROM THE TAPAJÓS BASIN

This research paper analyzes the relationship between agricultural land use and deforestation in the Tapajós basin of the Brazilian Amazon from 2002 to 2012. The author finds that an increase in the relative price of crops (specifically soy) compared to beef encourages the conversion of pasture to cropland, which in turn reduces local deforestation rates.

• Increases in the relative price of crops compared to beef lead to an expansion of soy cultivation and a corresponding reduction in local deforestation rates.
• The study estimates that for every one hectare increase in soy cultivation, there is a decrease of 0.39 hectares in deforestation.
• Between 2002 and 2012, the expansion of soy cultivation by 13,500 square kilometers resulted in the preservation of 5,300 square kilometers of tropical forest in the Tapajós basin, accounting for nearly 15% of the region's total deforestation during that period.
• The reduction in deforestation is attributed to a 'displacement effect' where crop cultivation, being more capital and labor-intensive than cattle ranching, increases local input prices, thereby forcing low-productivity cattle ranchers out of agriculture.
• The local environmental benefits of cropland expansion are most concentrated in municipalities along the agricultural frontier in central Mato Grosso, specifically Nova Mutum, Sorriso, Sinop, and Vera.
• While cropland expansion can cause negative spillover effects (increasing deforestation in other regions), the author's findings suggest that the local positive externalities mitigate between 40% and 90% of these negative indirect effects.

APA

BRAGANÇA, A. (2015). PRICES, LAND USE AND DEFORESTATION: EVIDENCE FROM THE TAPAJÓS BASIN. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/01/Prices_Land_Use_and_Deforestation_Working_Paper_CPI.pdf

Chicago

BRAGANÇA, ARTHUR. PRICES, LAND USE AND DEFORESTATION: EVIDENCE FROM THE TAPAJÓS BASIN. Climate Policy Initiative, 2015. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/01/Prices_Land_Use_and_Deforestation_Working_Paper_CPI.pdf.

Wikipedia

{{cite report |last1=BRAGANÇA |first1=ARTHUR |title=PRICES, LAND USE AND DEFORESTATION: EVIDENCE FROM THE TAPAJÓS BASIN |publisher=Climate Policy Initiative |date=August 2015 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/01/Prices_Land_Use_and_Deforestation_Working_Paper_CPI.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bragana2015prices, author = {BRAGANÇA, ARTHUR}, title = {{PRICES, LAND USE AND DEFORESTATION: EVIDENCE FROM THE TAPAJÓS BASIN}}, institution = {Climate Policy Initiative}, year = {2015}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/01/Prices_Land_Use_and_Deforestation_Working_Paper_CPI.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }