Does rural credit promote pasture recovery? Evidence from Brazil's Low-Carbon Agriculture Policy

The recovery effects are stronger in the Midwest and South regions, while they show no systematic relationship with biome characteristics or agricultural frontier dynamics. Cooperative presence mediates the effects of rural credit, enhancing the policy’s overall effectiveness and emphasizing the role of collective financial structures. Additionally, the policy generates positive environmental spillovers by reducing deforestation rates, reinforcing its broader contribution to conservation and climate-mitigation goals.

Together, these results demonstrate that well-designed rural credit schemes can simultaneously foster climate change adaptation, and mitigation while generating broader conservation co-benefits.</p> <p></p><p>The rural credit program contributed to reducing degraded pasture areas in Brazil between 2016 and 2021, supporting low-carbon agriculture.</p><p>The recovery of degraded pastures is more effective when combined with public actions such as technical assistance and sustainable land management practices.</p><p>Regional disparities in the effectiveness of the credit programme for low-carbon agriculture in Brazil highlight the need for governance strategies in shaping public policies and allocating resources.</p><p>The impact of the credit programme for low-carbon agriculture in Brazil is shaped more by political and administrative factors than by biome-specific characteristics.</p><p></p> <p>The rural credit program contributed to reducing degraded pasture areas in Brazil between 2016 and 2021, supporting low-carbon agriculture.</p> <p>The recovery of degraded pastures is more effective when combined with public actions such as technical assistance and sustainable land management practices.</p> <p>Regional disparities in the effectiveness of the credit programme for low-carbon agriculture in Brazil highlight the need for governance strategies in shaping public policies and allocating resources.</p> <p>The impact of the credit programme for low-carbon agriculture in Brazil is shaped more by political and administrative factors than by biome-specific characteristics.</p>