Land Use Policy V 66, P 18-27, 2017

Juliano Assunção, Clarissa Costalonga e Gandour, Pedro Martins Pessoa, Romero Cavalcanti Barreto da Rocha.

Once driven by large-scale clearings, Amazon deforestation now occurs mostly in small increments. Did this result from the emergence of a new group of agents or from a strategic adaptation in the behavior of those who led deforestation in the past? We address this question using georeferenced data on private rural properties and deforestation. We cross property-level and forest clearing data in an empirical setting designed to detect shifts towards clearing patches that were knowingly invisible to the monitoring system. We are therefore able to assess not only whether deforesters were responding strategically to stricter monitoring of deforestation, but also how this response differed across actor types. Results suggest that centralized policy efforts introduced starting in the mid-2000s inhibited medium- and large-scale deforestation, but had heterogeneous effects on small-scale deforestation. Although the relative participation of small deforestation polygons increased in both sample states, the relative participation of smallholders in total state deforestation increased in Pará, while remaining constant in Mato Grosso. We interpret these results as suggestive --- albeit not causal --- evidence that landholders strategically responded to the monitoring system by adapting their forest clearings practices to elude monitoring in both Mato Grosso and Pará. In the latter, however, the increase in smallholders' share of annual deforestation suggests that their clearing practices were relatively less affected by what effectively contained deforestation in large properties. The apparent similarity in scale of deforestation across states conceals relevant baseline differences between the agents engaging in forest clearing in each locality. Tailoring policy to account for such differences could strengthen Brazilian conservation policy