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Fertilizer prices and deforestation in Africa

Bibliographic Data

ID11931791
AuthorsYacouba Kassouri (0000-0002-5423-8263, German Centre for Integrative Biodiversity Research, corresponding author)
Year2024
Volume126
Pages102674-102674
Publication date2024-07-01
Open AccessYes
TypeARTICLE
VenueFood Policy (JOURNAL)
Journal identifiersISSN: 0306-9192 • E-ISSN: 1873-5657
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.foodpol.2024.102674
OpenAlexW4400482596
LanguageEN
References cited36

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

Agricultural economics · Agricultural land · Agriculture · Agronomy · Biology · Deforestation (computer science · Economics · Fertilizer · Market price · Natural resource economics · Urea · Conservation, Biodiversity, and Resource Management · Economic and Environmental Valuation · Energy, Environment, Economic Growth · Ecology · Finance

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