Investor Presentaiton
METHOD: HOW WAS THE EFFECT OF DEFORESTATION ISOLATED?
To isolate the effect of deforestation on
the price of land and agricultural products,
the study employed new spatial and
econometric modelling techniques, with
the former generating the data necessary to
analyse the latter.
The method posits that the "deforestation
effect" represents the increase in land stock
and the consequent incorporation of land for
agricultural and animal husbandry purposes.
The econometric
analysis was conducted
at the municipal level,
canvassing an 11-year
period (2006-2017).
2006
2007
Econometric
modelling
Spatial
modelling
Land price
Spatial estimation of land prices with data on coverage,
agricultural aptitude and annual regionalised price bulletins
(FNP) for the period spanning 2006 - 2017.
Area prone to deforestation
Analysis and spatial distribution of natural vegetation that
is unprotected by environmental legislation.
Deforestation rate
Analysis and spatial distribution of deforestation
data for the period spanning 2006 - 2017.
Agricultural Inputs
Tractors, staff, agricultural area.
Agricultural products
Rice, bananas, coffee, sugar cane,
oranges, milk, corn and soybeans.
Variables
Access to technical guidance, internet access, storage, higher education,
agricultural aptitude, concentration of establishments, average
distance to ports and highways, deforestation, among others.
2008
2009
2010
2011
2012
Deforestation
2013
2014
For each year of the timeline, the
necessary timeframe for the market
to visibly show the estimated
effects of deforested land being
incorporated was considered
(between 3 and 6 years).
2015
3 years
2016
Observation of
2017
the effect
6 years
HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION?
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