Total factor productivity and greenhouse gas emissions: An analysis for agriculture in the Legal Amazon
DOI:
https://doi.org/10.54766/rberu.v18i2.1058Keywords:
Legal amazon, TFP, Malmquist indexAbstract
Deforestation in the Brazilian Amazon, known as the Legal Amazon, is one of the main drivers of greenhouse gas (GHG) emissions in the region. Reducing deforestation and subsequent emissions can be achieved through more efficient agricultural production. This article measures the variation in Total Factor Productivity (TFP) in the Legal Amazon’s agriculture, comparing methods that include GHG emissions with those that do not. We calculated and compared the Malmquist and generalized Malmquist indices, which ignore by-products, with the Malmquist- Lundberg and generalized Malmquist-Lundberg indices, which account for by-products. Results show that indices considering GHG emissions exhibited lower growth compared to traditional indices. Additionally, 56% of municipalities in the Legal Amazon prioritize economic growth over GHG emissions control.
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