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 InfoPaper provided by Utah State University, Economics Department in its series Economics Research Institute, ERI Study Papers with number 28344.
Date of creation: 1998
Date of revision:
Demand and Price Analysis; Farm Management;
Other versions of this item:
- Barrett, Christopher B., 1999. "Stochastic food prices and slash-and-burn agriculture," Environment and Development Economics, Cambridge University Press, vol. 4(02), pages 161-176, May.
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