{"title":"Fertilizer prices and deforestation in Africa","authors":"Yacouba Kassouri","doi":"10.1016/j.foodpol.2024.102674","DOIUrl":null,"url":null,"abstract":"<div><p>This study explores the impact of fertilizer (urea) prices on local deforestation by exploiting the exogenous variation in the world price of urea inclusive of trade costs from the world market to the local market. The empirical analysis relies on a unique geo-coded dataset on the market price of urea across 158 subnational hub markets in 21 African countries and satellite-derived forest loss estimates over the period 2003 – 2012. The results suggest that fertilizer prices positively affect deforestation rate and forest cover loss. On average, a 1 % increase in local urea prices corresponds to 97.65 Ha of forest loss within a particular local market catchment. Specifically, the results reveal a price elasticity of approximatively 1 between urea prices and forest loss. The heterogeneity analysis suggests that the effects of urea prices on forest loss tend to be concentrated in markets with subtropical and tropical ecological features. Furthermore, I provide evidence for the land-conversion mechanism, implying that urea prices are positively associated with the expansion of agricultural land. Estimating an event study around exposure to a sustained jump in urea prices reveals a persistent response of deforestation and forest cover loss to fertilizer prices.</p></div>","PeriodicalId":321,"journal":{"name":"Food Policy","volume":"126 ","pages":"Article 102674"},"PeriodicalIF":6.8000,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S030691922400085X/pdfft?md5=e9df64fa3c956db4ba0907725ad7a511&pid=1-s2.0-S030691922400085X-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Food Policy","FirstCategoryId":"97","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S030691922400085X","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
This study explores the impact of fertilizer (urea) prices on local deforestation by exploiting the exogenous variation in the world price of urea inclusive of trade costs from the world market to the local market. The empirical analysis relies on a unique geo-coded dataset on the market price of urea across 158 subnational hub markets in 21 African countries and satellite-derived forest loss estimates over the period 2003 – 2012. The results suggest that fertilizer prices positively affect deforestation rate and forest cover loss. On average, a 1 % increase in local urea prices corresponds to 97.65 Ha of forest loss within a particular local market catchment. Specifically, the results reveal a price elasticity of approximatively 1 between urea prices and forest loss. The heterogeneity analysis suggests that the effects of urea prices on forest loss tend to be concentrated in markets with subtropical and tropical ecological features. Furthermore, I provide evidence for the land-conversion mechanism, implying that urea prices are positively associated with the expansion of agricultural land. Estimating an event study around exposure to a sustained jump in urea prices reveals a persistent response of deforestation and forest cover loss to fertilizer prices.
期刊介绍:
Food Policy is a multidisciplinary journal publishing original research and novel evidence on issues in the formulation, implementation, and evaluation of policies for the food sector in developing, transition, and advanced economies.
Our main focus is on the economic and social aspect of food policy, and we prioritize empirical studies informing international food policy debates. Provided that articles make a clear and explicit contribution to food policy debates of international interest, we consider papers from any of the social sciences. Papers from other disciplines (e.g., law) will be considered only if they provide a key policy contribution, and are written in a style which is accessible to a social science readership.