Clément Nedoncelle

(INRAE, Paris-Saclay)

 

 

Abstract:
Are changes in foreign demand determining deforestation? We tackle this question from the soy exports perspective. Indeed, conversion from forests to soy-producing areas is a major driver of deforestation. Using disaggregated exports data at the municipality – exporter – destination and year level in Brazil, we estimate whether changes in foreign demand are related to soy exports and in fine to soy-related deforestation. On the one hand, we estimate an average micro-level elasticity of soy exports to foreign demand of around 0.2 across specifications. On the other hand, we document that the average response above hides significant heterogeneities across locations and exporters. Third, relying on these results, we quantify the effects of a foreign demand negative shock on soy-related deforestation.