Dataset Information

Leakage does not fully offset soy supply-chain efforts to reduce deforestation in Brazil.

ABSTRACT: Zero-deforestation supply chain policies that leverage the market power of commodity buyers to change agricultural producer behavior can reduce forest clearing in regions with rapid commodity expansion and weak forest governance. Yet leakage-when deforestation is pushed to other regions-may dilute the global effectiveness of regionally successful policies. Here we show that domestic leakage offsets 43-50% of the avoided deforestation induced by existing and proposed zero-deforestation supply chain policies in Brazil's soy sector. However, cross-border leakage is insignificant (<3%) because soybean production is displaced to existing U.S. farmland. Eliminating deforestation from the supply chains of all firms exporting Brazilian soy to the EU or China from 2011-2016 could have reduced net global deforestation by 2% and Brazilian deforestation by 9%. Thus, if major tropical commodity importers (e.g., the EU) require traders to eliminate deforestation from their supply chains, it could help bend the curve on global forest loss.

SUBMITTER: Villoria N

PROVIDER: S-EPMC9482629 | biostudies-literature | 2022 Sep

REPOSITORIES: biostudies-literature

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Leakage does not fully offset soy supply-chain efforts to reduce deforestation in Brazil.

Villoria Nelson N Garrett Rachael R Gollnow Florian F Carlson Kimberly K

Nature communications 20220917 1

Zero-deforestation supply chain policies that leverage the market power of commodity buyers to change agricultural producer behavior can reduce forest clearing in regions with rapid commodity expansion and weak forest governance. Yet leakage-when deforestation is pushed to other regions-may dilute the global effectiveness of regionally successful policies. Here we show that domestic leakage offsets 43-50% of the avoided deforestation induced by existing and proposed zero-deforestation supply cha ...[more]

PMID: 36115865

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Project description:Previous research has established the usefulness of remotely sensed vegetation index (VI) data from the Moderate Resolution Imaging Spectroradiometer (MODIS) to characterize the spatial dynamics of agriculture in the state of Mato Grosso (MT), Brazil. With these data it has become possible to track MT agriculture, which accounts for ~85% of Brazilian Amazon soy production, across periods of several years. Annual land cover (LC) maps support investigation of the spatiotemporal dynamics of agriculture as they relate to forest cover and governance and policy efforts to lower deforestation rates. We use a unique, spatially extensive 9-year (2005-2013) ground reference dataset to classify, with approximately 80% accuracy, MODIS VI data, merging the results with carefully processed annual forest and sugarcane coverages developed by Brazil's National Institute for Space Research to produce LC maps for MT for the 2001-2014 crop years. We apply the maps to an evaluation of forest and agricultural intensification dynamics before and after the Soy Moratorium (SoyM), a governance effort enacted in July 2006 to halt deforestation for the purpose of soy production in the Brazilian Amazon. We find the pre-SoyM deforestation rate to be more than five times the post-SoyM rate, while simultaneously observing the pre-SoyM forest-to-soy conversion rate to be more than twice the post-SoyM rate. These observations support the hypothesis that SoyM has played a role in reducing both deforestation and subsequent use for soy production. Additional analyses explore the land use tendencies of deforested areas and the conceptual framework of horizontal and vertical agricultural intensification, which distinguishes production increases attributable to cropland expansion into newly deforested areas as opposed to implementation of multi-cropping systems on existing cropland. During the 14-year study period, soy production was found to shift from predominantly single-crop systems to majority double-crop systems.

Project description:As consumers' green awareness continues to grow, the level of a product's eco-friendliness and the quality of its marketing have become significant factors in shaping consumers' purchasing decisions. The power structures within the supply chain, as well as corresponding government subsidy policies, are also key elements influencing sustainable strategies for the green supply chain. In a green supply chain comprising one manufacturer and one e-commerce platform, two sales models exist within the online e-commerce platforms: reselling and agency selling. This paper establishes and analyzes three distinct Stackelberg game models, namely: manufacturer-led model without subsidy (bm), manufacturer-led model with subsidy (sm), and platform-led model with subsidy (sp). The results are shown as follows, with the rise of consumers' environmental awareness, more consumers opt for green products, inspiring the manufacturer to increase its optimal greenness and platform to enhance its optimal marketing efforts level. Notably, government subsidies provide a significant stimulus. An increase in the green technology cost coefficient leads to a decline in the manufacturer's profits across all three modes. Intriguingly, the manufacturer's profits are always highest in the sp mode. As the marketing efforts cost coefficient increases, the platform's profits decrease in the bm and sm modes. In contrast, in the sp mode, the platform's profits increase rather than a decrease. The choice of mode primarily depends on the platform's marketing efforts cost coefficient. When this coefficient exceeds a threshold, the platform chooses the sp mode. However, due to the relatively low marketing efficiency in this scenario, the manufacturer prefers the sm mode. For the government, the sp mode involves agency selling, serves as an effective mechanism to redistribute subsidies, thereby yielding the maximum social welfare benefits. Management insights are provided for the manufacturer and platform managers to make decisions about the degree of greenness and marketing efforts level, along with insights for governments to optimize subsidy policies.

Dataset Information

Leakage does not fully offset soy supply-chain efforts to reduce deforestation in Brazil.

Publications

Leakage does not fully offset soy supply-chain efforts to reduce deforestation in Brazil.

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