Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
| Session | |
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Land Use 1: Sustainable Tropical Forestry Location: B010 Session Chair: Beate Deixelberger, University of Graz | |
| Presentation 1 | |
Industrial Activity, State Capacity, and Deforestation: Evidence from Brazil 1: Sao Paulo School of Economics (FGV EESP); 2: Sao Paulo School of Business Administration (FGV EAESP); 3: Boston College and Nova SBE, United States of America Does industrial activity drive deforestation and land degradation, and can limited state capacity be overcome to decouple economic growth from environmental harm? We examine these questions in the context of slaughterhouse plant openings in Brazil from 1994 to 2019. Guided by a simple conceptual framework and using a staggered difference-in-differences approach, we show that plant openings increase livestock production while reducing forest cover and degrading pastureland. However, following the introduction of legally enforceable, incentive-compatible agreements between slaughterhouses and federal prosecutors—which penalize purchases of livestock from illegally deforested areas but act as a green certification mechanism—plant openings increase productivity without driving deforestation. Our findings suggest that tying firm performance to environmental goals through market-aligned legal mechanisms that are low-cost for the government can generate both economic and environmental gains. | |

