@article{2d790ddd7bd949b49ab06e245e087962,
title = "Environmental policies that shape productivity: Evidence from cattle ranching in the Amazon",
abstract = "We examine two potential economic benefits of environmental policy, increased agricultural investment and productivity. This is important because if these benefits are realized, environmental policy could optimize land use for food production while minimizing the negative environmental impacts. We employ multiple empirical techniques to analyze a market-led and a public-led anti-deforestation policy that influence the vast cattle ranching sector in the Brazilian Amazon. We show that both policies increased cattle productivity, while the market-led policy also increased investment. We find no evidence that the two policies were substitutes or complements. Results indicate that the policies were each effective in different market- and land-use-contexts, so that enforcement of both policies increased productivity for a larger set of properties. Our research reveals both indirect and unintended benefits of environmental regulation, which have implications for the design of policies that affect the agricultural sector, a major driver of land-use change.",
keywords = "Amazon, Environmental regulation, Induced intensification, Land investment, Productivity, Unintended benefits",
author = "Fanny Moffette and Marin Skidmore and Gibbs, {Holly K.}",
note = "Funding Information: We thank Ryan Abman, Jennifer Alix-Garcia, Kathy Baylis, Jill Caviglia-Harris, Francisco Costa, Jens Engelmann, Jeremy Foltz, Laura Schechter, Andrew Stevens; the editor Lucija Muehlenbachs and three anonymous referees, as well as participants at the MWIEDC 2019, AERE Summer Conference 2019, AERE@ASSA 2020, Global Open Series in Environmental Economics 2020, Development Workshop at the University of Wisconsin-Madison for helpful comments and suggestions. Jacob Munger assisted with the construction of the database and Ian Schelly prepared the maps. Funding provided by the Gordon and Betty Moore Foundation, United States of America and the Norwegian Agency for Development Cooperation{\textquoteright}s Department for Civil Society under the Norwegian Forest and Climate Initiative. Holly has a consulting relationship with the National Wildlife Federation . Any errors or omissions are the sole responsibility of the authors. Funding Information: We thank Ryan Abman, Jennifer Alix-Garcia, Kathy Baylis, Jill Caviglia-Harris, Francisco Costa, Jens Engelmann, Jeremy Foltz, Laura Schechter, Andrew Stevens; the editor Lucija Muehlenbachs and three anonymous referees, as well as participants at the MWIEDC 2019, AERE Summer Conference 2019, AERE@ASSA 2020, Global Open Series in Environmental Economics 2020, Development Workshop at the University of Wisconsin-Madison for helpful comments and suggestions. Jacob Munger assisted with the construction of the database and Ian Schelly prepared the maps. Funding provided by the Gordon and Betty Moore Foundation, United States of America and the Norwegian Agency for Development Cooperation's Department for Civil Society under the Norwegian Forest and Climate Initiative. Holly has a consulting relationship with the National Wildlife Federation. Any errors or omissions are the sole responsibility of the authors. Publisher Copyright: {\textcopyright} 2021",
year = "2021",
month = sep,
doi = "10.1016/j.jeem.2021.102490",
language = "English (US)",
volume = "109",
journal = "Journal of Environmental Economics and Management",
issn = "0095-0696",
publisher = "Academic Press Inc.",
}