Stochastic food prices and slash-and-burn agriculture
AbstractThis paper explores the interrelationship between poverty, risk, and deforestation by small farmers in the low-income tropics. A nonseparable household model reveals how exogenous shocks to the mean or variance of a food price distribution might affect peasants' incentives to clear forest. The resulting links between food price policy, farmer behavior, and deforestation offer an innovative explanation of the vicious cycle of peasant immiserization and tropical deforestation. An intriguing, testable hypothesis also emerges: that market-oriented reforms that increase the mean and variance of food prices may inadvertently stimulate deforestation in economies in which a sizable proportion of farmers are net buyers.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Environment and Development Economics.
Volume (Year): 4 (1999)
Issue (Month): 02 (May)
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Other versions of this item:
- Barrett, Christopher B., 1998. "Stochastic Food Prices And Slash-And-Burn Agriculture," Economics Research Institute, ERI Study Papers 28344, Utah State University, Economics Department.
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