Does intensification slow crop land expansion or encourage deforestation?

The role of intensification in minimizing cropland and slowing deforestation is often disputed. We make a broad distinction between technology-induced and market-induced intensification. We find evidence at the local level that technical progress in a few cases may induce land expansion although much depends on where the technical change occurs (near the forest frontier or away from it) and the type of market (local or global). At a global level, technology-driven intensification is strongly land saving although deforestation in specific regions is likely to continue to occur. Market-driven intensification, however, is often a major cause of land expansion and deforestation especially for export commodities in times of high prices. Beyond land saving, the type of intensification matters a lot for environmental outcomes. Finally, technology-driven intensification by itself is unlikely to arrest deforestation unless accompanied by stronger governance of natural resources.