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Rafael Araujo

@araujocrrafael.bsky.social
777 followers 605 following 32 posts

Assistant Prof. of Economics (FGV EESP) rafaelcraraujo.github.io

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Reposted by Rafael Araujo
Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
We often think of transportation infrastructure as a key driver of economic growth. And that’s true. But it also has a big environmental footprint -- one that’s often underestimated.
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Reposted by Rafael Araujo
Khoa @khoavuumn.bsky.social · 19/08/2025
Synthetic Control Method be like
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
We wrote a short summary for @voxdev.bsky.social here 👉 voxdev.org/topic/energy...
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
The full paper is now out in the Journal of Development Economics 👉 www.sciencedirect.com/science/arti...
sciencedirect.com
Transportation infrastructure and deforestation in the Amazon
We examine the effects of transportation infrastructure on deforestation in the Amazon. We build an inter-regional trade model in which agricultural c…
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
This kind of evidence matters. If we care about protecting the Amazon while supporting development, we need better tools to measure the real impacts of infrastructure -- and design smarter policies.
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
The big takeaway? It’s not just about what happens near the road/railroad/port itself. The deforestation footprint is spatially complex, spreading in ways that standard impact assessments often miss.
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
In our new paper, just published in the Journal of Development Economics -- with the brilliant Juliano Assunção and @arthurbraganca7.bsky.social -- we look at how roads, railroads, and waterways affect deforestation in the Amazon.
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Rafael Araujo @araujocrrafael.bsky.social · 17/06/2025
We often think of transportation infrastructure as a key driver of economic growth. And that’s true. But it also has a big environmental footprint -- one that’s often underestimated.
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Reposted by Rafael Araujo
Bård Harstad @bardharstad.bsky.social · 19/05/2025
My pleasure! Thank you, @araujocrrafael.bsky.social, @franciscocosta.bsky.social, and Sant'Anna, for responding carefully, and ConGrat with an important publication ‪@reveconstudies.bsky.social
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Rafael Araujo @araujocrrafael.bsky.social · 18/05/2025
Our paper on Amazon deforestation is out! Grateful to everyone who helped along the way. I'd like to highlight one thing that made a huge difference: clear and thoughtful guidance from the editor.
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Reposted by Rafael Araujo
Erik Ansink @erikansink.bsky.social · 11/05/2025
Just a few days left to apply to this 3-year postdoc position in environmental economics at @vusbe.bsky.social to work with me on the economics of water management (drought, contract design, nature based solutions, experiments, etc). Application deadline: May 15. workingat.vu.nl/vacancies/po...
workingat.vu.nl
Vacancy — Post-doc in Environmental Economics
A Postdoctoral Fellow position is available at the Department of Spatial Economics at Vrije Universiteit Amsterdam, starting in Fall 2025. Are you interested? Please apply at Vrije Universiteit Amster...
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Reposted by Rafael Araujo
Bruno Ferman @brunoferman.bsky.social · 29/04/2025
🧵New survey paper: "Inference with Few Treated Units" Luis Alvarez, Bruno Ferman and Kaspar Wüthrich Tired of referees saying your standard errors are wrong? This survey will help you understand if you really have a problem — and, if so, how to fix it!
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
🚨New Working Paper🚨 "Potato Potahto in the FAO-GAEZ Productivity Measures? Nonclassical Measurement Error with Multiple Proxies" w/ @vitorpossebom.bsky.social Link: arxiv.org/abs/2502.12141
arxiv.org
Potato Potahto in the FAO-GAEZ Productivity Measures? Nonclassical Measurement Error with Multiple Proxies
The FAO-GAEZ crop productivity data are widely used in Economics. However, the existence of measurement error is rarely recognized in the empirical literature. We propose a novel method to partially i...
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
We highlight that our proposed methodology can be used in many empirical contexts. To employ our partial identification strategy, we only require an exogenous mismeasured treatment variable and two exogenous proxies.
media.tenor.com
a teddy bear is dancing in a kitchen in a happy dance costume .
ALT: a teddy bear is dancing in a kitchen in a happy dance costume .
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
However, our method reaches very different conclusions when compared to the findings of Nunn and Qian (2011) and Acharya et al. (2016). In particular, we find that the impact of agricultural productivity may be smaller than previously reported.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
To illustrate our methodology, we reevaluate the results of three empirical studies: Nunn and Qian (2011), Bustos et al. (2016) and Acharya et al. (2016). We find that the results by Bustos et al. (2016) are robust to measurement error.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
We derive bounds around the true linear effect of crop productivity on the outcome of interest. These bounds exhaust all the information contained in the first two moments of the data distribution and have intuitive closed-form solutions.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
We propose to partially identify the effect of crop productivity in a linear model with two proxies that are subject to nonclassical measurement error. We impose that the true unobservable productivity is exogenous and that its effect on the outcome is non-negative.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
We document the possibility of measurement error in the GAEZ variables. Their versions differ with respect to calibrated parameters and sources of data. These differences cause large changes in productivity for many crops and regions, suggesting the existence of mismeasurement.
There are two images here, on the left it shows a map of Brazil with the difference between versions 3 and 4 of FAO-GAEZ data for soybeans. On the right it shows a scatter plot of the data.There are two images here, on the left it shows a map of the South of the US with the difference between versions 3 and 4 of FAO-GAEZ data for cotton. On the right it shows a scatter plot of the data.There are two images here, on the left it shows a map of the Old World with the difference between versions 3 and 4 of FAO-GAEZ data for potato. On the right it shows a scatter plot of the data.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
Measurement error in the FAO-GAEZ data is rarely recognized in the empirical literature and is not properly addressed by current statistical methods. We propose a novel method that partially identifies the effect of crop productivity while accounting for measurement error.
media.tenor.com
a man is measuring a piece of wood with a tape measure while a dog looks on
ALT: a man is measuring a piece of wood with a tape measure while a dog looks on
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
The impact of crop productivity on economic outcomes is important in many fields. The most common measure of crop productivity is the FAO-GAEZ measure. However, this measure is based on a prediction model and is subject to measurement error.
this is a picture of the abstract of the paper. The FAO-GAEZ crop productivity data are widely used in Economics. However, the existence of measurement error is rarely recognized in the empirical literature. We propose a novel method to partially identify the effect of agricultural productivity, deriving bounds that allow for nonclassical measurement error by leveraging two proxies. These bounds exhaust all the information contained in the first two moments of the data. We reevaluate three influential studies, documenting that measurement error matters and that the impact of agricultural productivity on economic outcomes may be smaller than previously reported. Our methodology has broad applications in empirical research involving mismeasured variables.
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Rafael Araujo @araujocrrafael.bsky.social · 24/02/2025
🚨New Working Paper🚨 "Potato Potahto in the FAO-GAEZ Productivity Measures? Nonclassical Measurement Error with Multiple Proxies" w/ @vitorpossebom.bsky.social Link: arxiv.org/abs/2502.12141
arxiv.org
Potato Potahto in the FAO-GAEZ Productivity Measures? Nonclassical Measurement Error with Multiple Proxies
The FAO-GAEZ crop productivity data are widely used in Economics. However, the existence of measurement error is rarely recognized in the empirical literature. We propose a novel method to partially i...
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Reposted by Rafael Araujo
Pedro Sant’Anna @pedrosantanna.bsky.social · 03/01/2025
I've decided to collect my DiD materials in a single place. psantanna.com/did-resources There, you will find - 14 lectures of my comprehensive DiD course - Shorter lectures/talks I have given on DiD - My DiD R/Stata/Python packages - Some DiD checklists - DiD materials from my friends Enjoy!
psantanna.com
Pedro H. C. Sant’Anna
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Reposted by Rafael Araujo
Pedro Sant’Anna @pedrosantanna.bsky.social · 29/12/2024
I am thinking of making my DiD materials that I used for teaching in the last 5 years available. I am hoping these would find begineers in need of a step-by-step opinionated walkthrough of several developments Let’s see if I find the energy to do this!
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Reposted by Rafael Araujo
Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
After many iterations my paper on endogenous climate in deforestation modeling is reborn! (an amazing photo from the one and only Sebastião Salgado:)
The figure shows a massive rainfall event over the Amazon Rainforest. The picture, in black and white, highlights the composition of the clouds, the rainfall, and the forest.
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Rafael Araujo @araujocrrafael.bsky.social · 16/11/2024
#econsky
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Reposted by Rafael Araujo
Erik Ansink @erikansink.bsky.social · 14/11/2024
Since I haven't seen it posted on BlueSky yet: check the report by the "Global Commission on the Economics of Water". I like it quite a bit. economicsofwater.watercommission.org #econsky 1/3
economicsofwater.watercommission.org
The Economics of Water: Valuing the Hydrological Cycle as a Global Common Good
A seven-point call to collective action. A sustainable and just water future can be achieved. It requires transforming the economics and restructuring the governance of water.
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Rafael Araujo @araujocrrafael.bsky.social · 15/11/2024
Thanks, Manuel!!
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Manuel Linsenmeier @mlinsenmeier.bsky.social · 11/11/2024
What a paper! Interdisciplinary env econ research at its best.
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Reposted by Rafael Araujo
Brenda Prallon @brendaprallon.bsky.social · 11/11/2024
Rafa’s work has some of my favorite examples of serious economic theory + relevant policy question + super cool data. check it out!
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Rafael Araujo @araujocrrafael.bsky.social · 15/11/2024
media.tenor.com
a man in a suit and tie is standing in front of a door that has a sign on it that says waiting room
ALT: a man in a suit and tie is standing in front of a door that has a sign on it that says waiting room
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
or directly here: rafaelcraraujo.github.io/assets/paper...
rafaelcraraujo.github.io
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
And you can read the paper here: rafaelcraraujo.github.io
rafaelcraraujo.github.io
Welcome
Assistant Professor of Economics, FGV EESP
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Main takeaway: We can make economics and natural sciences work together. Doing so reveals new insights about our environment and how we impact it.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Natural sciences have studied these mechanisms for decades but economics can also bring new lessons. When farmers reoptimize their crop choices in response to climate shifts, economic outcomes shift too.
This figure shows two overlapped histograms showing the distribution of returns in scenarios with and without adaptation. The distribution of the scenario with adaptation is significantly to the right of the distribution of the scenario without adaptation.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Take the Xingu Indigenous Territories (can you spot it?), removing Xingu’s protection status expands agricultural land but worsens the climate. Ignoring climate feedback would miss the bigger picture: 40% of the agricultural gains from deforestation are offset by climate feedback.
The figure shows a satellite image constrating a large green patch of forest (the Xingu) surrounded by large brown patches of agricultural land.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Why does this matter? I apply the model to the Amazon, focusing on how protecting indigenous territories impacts agriculture. Flying rivers operate over long distances, meaning deforestation policies create a network of winners and losers
This figure shows two maps of the Brazilian state of Mato Grosso. One, on the left, shows the impact of Xingu's deforestation on forest cover. The scale varies from a zero effect to 10%+. On the right, the maps shows the impact of deforestation on the expected return. The scale varies from 0 to -20%-. The spatial pattern in both maps is that the center of the state, a region close to the Xingu, is the most affected region.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
“Does one exist?” I build a model where agricultural productivity depends on climate, and climate depends on deforestation. I show that equilibrium exists and show conditions for this thing to be a contraction.
This figure is a drawing showing three people dressed as spider-man pointing at each other. Each spider-man is labeled as "best response".
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
In the tropics, agriculture drives deforestation, but it also depends on a stable climate, which is in part maintained by forests. This feedback creates a delicate equilibrium... if one exists.
The figure shows a satellite image contrasting a small patch of green forest with large patches of brown agricultural land.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Since the 1980s, we’ve known that rainforests like the Amazon can massively influence climate. Without it, 30% of South America's rainfall would disappear. This “flying rivers” mechanism—where trees’ transpiration creates rain hundreds of kilometers away—is crucial yet often overlooked.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
Climate is endogenous—people impact it, and it impacts people. Yet, aside from emissions-focused work, research is sparse, especially in deforestation.
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Rafael Araujo @araujocrrafael.bsky.social · 11/11/2024
After many iterations my paper on endogenous climate in deforestation modeling is reborn! (an amazing photo from the one and only Sebastião Salgado:)
The figure shows a massive rainfall event over the Amazon Rainforest. The picture, in black and white, highlights the composition of the clouds, the rainfall, and the forest.
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Rafael Araujo @araujocrrafael.bsky.social · 27/08/2024
Starter packs
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Eugenie Dugoua @eugeniedugoua.bsky.social · 25/08/2024
And here is Energy & Env Econ Volume 2: bsky.app/starter-pack...
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Rafael Araujo @araujocrrafael.bsky.social · 24/08/2024
Thanks for this. I'd appreciate if you could add me
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JAERE @jaereaere.bsky.social · 02/08/2024
"Going Viral: Public Attention and Environmental Action in the Amazon" by Rafael Araujo (@araujocrrafael.bsky.social), Francisco Costa (@franciscocosta.bsky.social), and Teevrat Garg (@teevrat.bsky.social) was just accepted at JAERE. Read more here: www.journals.uchicago.edu/doi/10.1086/...
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