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Shifting cultivation, forest fallow, and externalities in ecosystem services: Evidence from the Eastern Amazon

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  • Klemick, Heather

Abstract

This study examines the value of fallow ecosystem services in shifting cultivation, including hydrological externalities that may affect other farms. Using farm-level survey data from the Brazilian Amazon, I estimate a production function to assess the value of forest fallow and test whether it provides local externalities to agricultural production. Soil quality controls, instrumental variables, and spatial econometric approaches help address endogeneity issues. I use GIS data on external forest cover at the farm level and model the hydrological externality as an upstream-to-downstream process. The estimated parameters indicate that fallow contributes significantly to productivity both on farm and downstream. In addition, most farms allocate sufficient land to fallow, accounting for both the value of hydrological spillovers and the opportunity cost of land left out of cultivation. These results suggest that farming communities may have some self-interest in preserving forest cover locally--a finding that may bolster policy efforts aimed at conserving tropical forests for their global public goods.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 61 (2011)
Issue (Month): 1 (January)
Pages: 95-106

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Handle: RePEc:eee:jeeman:v:61:y:2011:i:1:p:95-106

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Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: Forest Farms Fallow Ecosystem services Land use Spatial econometrics Externalities Brazil;

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Cited by:
  1. May, Peter H. & Soares-Filho, Britaldo Silveira & Strand, Jon, 2013. "How much is the Amazon worth ? the state of knowledge concerning the value of preserving amazon rainforests," Policy Research Working Paper Series, The World Bank 6668, The World Bank.
  2. Yoshito Takasaki, 2013. "Deforestation, forest fallowing, and soil conservation in shifting cultivation," Tsukuba Economics Working Papers, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba 2013-003, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  3. Klemick, Heather, 2011. "Constraints or Cooperation? Determinants of Secondary Forest Cover Under Shifting Cultivation," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, Northeastern Agricultural and Resource Economics Association, vol. 40(3), December.

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