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Subsidies and Deforestation
08/08/2023
14% of forest loss each year is associated with subsidies for products such as soybeans, palm oil and beef due to the advance of the agricultural frontier.
El 14% de la pérdida de bosques en cada año están asociadas a las subvenciones de productos como la soja, el aceite de palma y la carne de res debido al avance de la frontera agrícola (Darmania et al., 2023)
Damania, Richard; Balseca, Esteban; de Fontaubert, Charlotte; Gill, Joshua; Kim, Kichan; Rentschler, Jun; Russ, Jason; Zaveri, Esha. 2023. Detox Development: Repurposing Environmentally Harmful Subsidies. © Washington, DC : World Bank. https://opsaa.iica.int/resource-1036-desarrollo-detox:-reutilizacion-de-subvenciones-perjudiciales-para-el-medio-ambiente
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Instruments:
- Payments or subsidies to the producer based on farm services (mechanization, etc.)
- Payments or subsidies to the producer for the acquisition of fixed assets (fixed capital formation)
- Payments or subsidies to the producer based on agricultural production
- Payments or subsidies for the acquisition of variable inputs (eg fertilizers)
- Consumer prices subsidies for agrifood products
- Export subsidies
- Subsidies to interest rates on agricultural loans
- Support or subsidy for the acquisition of production assets
- Support or subsidy for agricultural producer prices
- Incentives or subsidies for the adoption of good sustainable production practices