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Economic policies and the environment: the case of tree planting on low-income farms in the Philippines

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  • SHIVELY, GERALD E.

Abstract

This paper investigates the potential for economic policies to influence environmental outcomes in low-income agriculture. The analysis focuses on how changes in agricultural prices influence land-use decisions and environmental indicators. Tree-planting decisions of low-income farmers in the Philippines are examined using a stochastic dynamic household model. Empirical analysis and dynamic simulations demonstrate that changes in relative prices and relative price risks are important determinants of tree-planting decisions. Results show that small holders are sensitive to risks associated with tree crops, but that price risk is not an insurmountable barrier to tree crop adoption. The relationship between cropping patterns and two environmental indicators - erosion and species diversity - are discussed.

Suggested Citation

  • Shively, Gerald E., 1998. "Economic policies and the environment: the case of tree planting on low-income farms in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 3(1), pages 83-104, February.
    • Handle: RePEc:cup:endeec:v:3:y:1998:i:01:p:83-104_00
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    Cited by:

    1. Dinh, Hoang Huu & Nguyen, Trung Thanh & Hoang, Viet-Ngu & Wilson, Clevo, 2017. "Economic incentive and factors affecting tree planting of rural households: Evidence from the Central Highlands of Vietnam," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 14-24.
    2. Nguyen, Trung Thanh & Bauer, Siegfried & Uibrig, Holm, 2010. "Land privatization and afforestation incentive of rural farms in the Northern Uplands of Vietnam," Forest Policy and Economics, Elsevier, vol. 12(7), pages 518-526, September.
    3. Ian Coxhead & Agnes Rola & Kwansoo Kim, 2001. "How Do National Markets and Price Policies Affect Land Use at the Forest Margin? Evidence from the Philippines," Land Economics, University of Wisconsin Press, vol. 77(2), pages 250-267.
    4. Mekonnen, Alemu & Damte, Abebe, 2011. "Private Trees as Household Assets and Determinants of Tree-Growing Behavior in Rural Ethiopia," RFF Working Paper Series dp-11-14-efd, Resources for the Future.
    5. Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
    6. Coxhead, Ian, 2000. "Consequences of a Food Security Strategy for Economic Welfare, Income Distribution and Land Degradation: The Philippine Case," World Development, Elsevier, vol. 28(1), pages 111-128, January.
    7. Coxhead, Ian & Shively, Gerald & Shuai, Xiaobing, 2002. "Development policies, resource constraints, and agricultural expansion on the Philippine land frontier," Environment and Development Economics, Cambridge University Press, vol. 7(2), pages 341-363, May.
    8. Blackman, Allen & Nelson, Per-Kristian & Mathis, Mitchell, 2001. "The Greening of Development Economics: A Survey," RFF Working Paper Series dp-01-08, Resources for the Future.
    9. Eli Feinerman & Yacov Tsur, 2014. "Perennial crops under stochastic water supply," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 757-766, November.
    10. Hoang Huu Dinh & Shyam Basnet & Justus Wesseler, 2023. "Impact of Land Tenure Security Perception on Tree Planting Investment in Vietnam," Land, MDPI, vol. 12(2), pages 1-23, February.
    11. Shively, Gerald E. & Pagiola, Stefano, 2001. "Poverty, Agricultural Development, And The Environment: Evidence From A Frontier Region Of The Philippines," 2001 Annual meeting, August 5-8, Chicago, IL 20532, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. ERREYGERS, Guido & FEREDE, Tadele, 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Business and Economics.
    13. Shively, Gerald E., 1999. "Measuring The Environmental Impacts Of Technical Progress In Low-Income Agriculture: Empirical Evidence On Irrigation Development And Forest Pressure In Palawan, The Philippines," 1999 Annual meeting, August 8-11, Nashville, TN 21626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Shively, Gerald & Zelek, Charles, 2002. "Linking Economic Policy and Environmental Outcomes at a Watershed Scale," Philippine Journal of Development PJD 2002 Vol. XXIX No. 1-, Philippine Institute for Development Studies.
    15. Kohlin, Gunnar & Sills, Erin O. & Pattanayak, Subhrendu K. & Wilfong, Christopher, 2011. "Energy, gender and development: what are the linkages ? where is the evidence ?," Policy Research Working Paper Series 5800, The World Bank.
    16. Shively, Gerald E., 1999. "Prices and Tree Planting on Hillside Farms in Palawan," World Development, Elsevier, vol. 27(6), pages 937-949, June.
    17. Alemu Mekonnen, 2009. "Tenure Security, Resource Endowments, and Tree Growing: Evidence from the Amhara Region of Ethiopia," Land Economics, University of Wisconsin Press, vol. 85(2), pages 292-307.

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