Land speculation and interest rate subsidies as a cause of deforestation: The role of cattle ranching in Costa Rica

Land inequality and deforestation in the Brazilian Amazon

“…As expected, cattle prices and rural credit have positive and relatively stable positive coefficients. These results are in line with a large number of authors' findings and signal that there are strong economic incentives for deforestation in the Brazilian Amazon region (Alston et al , 1999; Margulis, 2003; Roebeling and Hendrix, 2010; Hargrave and Kis-Katos, 2013; Assunção et al , 2015). In fact, as observed in section 2, deforestation confers on the occupant greater capitalization (because deforested land is more valued) and provides benefits through the sale of wood and the development of cattle activities 22…”

“…(Alston et. al, 1999;Silva, 2010, Roebeling andHendrix, 2010). In fact, as observed in Section II, deforestation confers to the occupant greater capitalization (because deforested land is more valued) and provides benefits through the sale of wood and the development of cattle activities.…”

Migration, remittances and smallholder decision-making: Implications for land use and livelihood change in Central America

“…The influx of remitted income has led to more land purchases for housing to the detriment of agriculture by both removing productive land from cultivation and by increasing the opportunity cost for its continued use for farming in lieu of its sale for new home construction. Under such circumstances, investments in land uses consistent with decreasing labor and land productivity, such as pasture, make economic sense (Loker, 1993; Roebeling and Hendrix, 2010). As explained above, it also is consistent with Central and broader Latin American “cattle culture” described in detail by Latinamericanist anthropologists (Grandia, 2009; Hoelle, 2011).…”

“…Should this barrier be overcome then ranching can become a valuable smallholder livelihood strategy. Cattle ranching, in contrast to row crop agriculture, ameliorates labor shortages associated with migration as only a few laborers are needed to raise and monitor large numbers of cattle (Loker, 1993; Roebeling and Hendrix, 2010). …”

Deforestation Around the World

“…However, the "conservationist" reputation of the country is relatively recent and largely contrasts from the unsustainable practices driving the economic model of Central America during the second half the XX century. Overall, the land speculation by cattle ranchers in combination with interest rate subsidies (i.e., financial incentives widely provided by government entities and public banks) is pointed as the main cause of deforestation in Costa Rica and in the rest of Latin America (Kull et al, 2007;Roebeling & Hendrix, 2010). Thus, since 1960 most government policies, national and international investment, and international cooperation programs have all promoted the deforestation, colonization, and "hamburgerization" (i.e., the pasture expansion for the beef industry proliferation for export to USA) of the Central American land (Harrison, 1989;Myers, 1981).…”