International Trade and Land-Use Change

Blyde, Juan S.; Ramírez, Mayra A.

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Juan S. Blyde, Mayra A. Ramírez,

Inter-American Development Bank, Washington DC, USA

Corresponding Author: Juan S. Blyde ,Email: juanbl@iadb.org

ABSTRACT

This paper measures the environmental footprint of trade-related activities that use land intensively. By combining detailed data on forest cover at the municipal level in Colombia with exports at the same level of disaggregation, the study measures the extent to which the exports of agriculture, mining, and livestock are associated with deforestation. It establishes a causal link by relying on a measure of foreign demand as a source of exogenous variation for the export variable. While exports in some sectors have led to deforestation, this effect is mitigated when production is located in protected areas, indicating that there is no linear relationship between agricultural exports and deforestation. This, in turn, suggests several areas for public policy intervention.

JEL Classification

F14: Empirical Studies of Trade
F18: Trade and Environment
Q15: Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
Q56: Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

Keywords: Exports | Deforestation | Climate Change | Emissions