| dc.description.abstract | The aim of this thesis is to study the effect of two new agricultural technologies on agricultural land use and forests. To guide our empirical work, we present a simple model in which the effect on land use in agriculture depends on the factor-bias of technical change. To test the predictions of the model, we utilize an instrumental variables approach to study the introduction of genetically engineered soy and a second harvesting season of maize in Brazil. In order to identify the effect of these technologies, we exploit the exogenous timing of their adoption, in addition to their heterogeneous impacts on agricultural productivity across geographical areas.
Ourmainfindingisthattechnicalchangeinagriculturehasambiguouseffectsonforestloss. First, land-augmenting technical change, in the form of second season maize, increases the land productivity which reduces pressure on forests. Second, labor-augmenting technical change, in the form of genetically engineered soy, increases labor productivity, rising the pressure on forest. However, our results suggest that a second harvesting season of maize primarily is exploited as a method to consolidate soy and maize cultivation. Thus, we find the effect of land augmenting technical change to be indirect, as a result of increased double cropping of soy and maize leading to a reduction in first season maize cultivation. We also find indications of genetically engineered soy replacing cultivation of first season maize. | nb_NO |
