Agriculture

The impact of agricultural credit on the cattle inventory and deforestation in Colombia: a spatial analysis

D. M. Tejada, M. F. D. Baca, et al.

This study by Daniela Mejía Tejada and colleagues explores the intriguing relationship between agricultural credit, cattle production, and deforestation in Colombia. Utilizing advanced spatial panel data models, the research finds unexpected results—highlighting significant regional influences in cattle production while revealing no connections to deforestation. Dive in to understand the complexities of credit access in agriculture!

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~3 min • Beginner • English

Index

Abstract

The objective of this study is to analyze the impact of credit on cattle production and deforestation in Colombia through spatial panel data models using a departmental panel for 2011–2020. Results suggest that access to credit is significantly associated with cattle production, with relationships that can be either negative or positive depending on whether number or value of credits and sectoral targeting are considered. There is evidence of spatial dependence in cattle production, indicating departments are affected by neighboring departments. For deforestation, the number of cattle affects annual deforestation rates—consistent with limited coverage of sustainably intensified systems—while there is no relationship between deforestation and access to credit, nor evidence of spatial correlation in deforestation.

Publisher

npj Climate Action

Published On

Mar 15, 2024

Authors

Daniela Mejía Tejada, Manuel Francisco Díaz Baca, Karen Johanna Enciso Valencia, Aura María Bravo Parra, Jesús Fernando Flórez, John Jairo Junca Paredes, Stefan Burkart

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