Industrial Activity, State Capacity, and Deforestation: Evidence from Brazil

We thank Julio Aguirre, Juliano Assunção, Nano Barahona, André R. Cardoso, Karen Clay, J. Anthony Cookson , Eric Edwards, P.J. Hill, Akshaya Jha, Erik Katovich, Bryan Leonard, Joshua Lewis, Thiago Lobo, Sophie Mathes, Gabriel Monteiro, Jacob Moscona, Nick Parker, Sara Sutherland, Rudi Rocha, Shawn Regan, Vitor Possebom, Nathaly Rivera, and Daniel Vargas, seminar participants at Carnegie Mellon University, Helsinki Graduate School of Economics, the Property and Environment Research Center (PERC), and at the Mercator Research Institute on Global Commons and Climate Change (MCC) – Berlin, and conference participants at the AERE Summer Conference, Annual Meeting of the Brazilian Econometric Society, EEA-ESEM Conference, International Economic Association World Congress, RIDGE Environmental Economics Workshop, and the World Congress of the Econometric Society for invaluable comments and suggestions. This work started while Dotta was a visiting scholar at Carnegie Mellon University. Part of the project was executed while Severnini was a summer Lone Mountain Fellow at PERC. The authors gratefully acknowledge financial support from Boston College (Schiller Institute for Integrated Science and Society), CAPES (Brazilian National Science Foundation), Carnegie Mellon University (Heinz College), FAPESP (Grant n. 2021/11959-3), Instituto Escolhas, and PERC. The usual disclaimer applies. Declarations of interest: none. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.