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Risks and returns from soil conservation: evidence from low-income farms in the Philippines

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  • Shively, Gerald E.

Abstract

This paper examines risks and returns associated with soil conservation on hillside farms in the Philippines. Stochastic efficiency analysis is combined with a heteroskedastic regression model to assess the impacts of contour hedgerows on lowincome corn farms. Regression analysis indicates that, over time, contour hedgerows can improve yields up to 15% compared with conventional practices. The analysis also provides weak support for a hypothesis that hedgerows are variance reducing. However, results show that the reduction in yield variability afforded by hedgerows is modest, and that yield variability may increase by as much as 5% as hedgerow intensity rises. Tests for stochastic dominance show that, compared with the conventional tillage system, hedgerows do not constitute an unambiguously dominant production strategy. Stochastic efficiency with respect to a function is used to identify a range for the coefficient of relative risk aversion within which hedgerows dominate conventional tillage. Results suggest this range would be rather high; hedgerows dominate the conventional cropping strategy only for decision-makers with relative risk aversion coefficients in the range 3-5.5. Implications for soil conservation adoption in low-income settings are discussed. © 1999 Elsevier Science B.V. All rights reserved.
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  • Shively, Gerald E., 1999. "Risks and returns from soil conservation: evidence from low-income farms in the Philippines," Agricultural Economics, Blackwell, vol. 21(1), pages 53-67, August.
  • Handle: RePEc:eee:agecon:v:21:y:1999:i:1:p:53-67
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    6. Shively, Gerald E., 1998. "Modeling Impacts Of Soil Conservation On Productivity And Yield Variability: Evidence From A Heteroskedastic Switching Regression," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20930, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Feder, Gershon & O'Mara, Gerald T, 1981. "Farm Size and the Diffusion of Green Revolution Technology," Economic Development and Cultural Change, University of Chicago Press, vol. 30(1), pages 59-76, October.
    8. Francisco, Herminia A. & Cruz, Wilfrido & Conway, Zenaida T., 1988. "The On-Site and Downstream Costs of Soil Erosion," Working Papers WP 1988-11, Philippine Institute for Development Studies.
    9. ZELLNER, Arnold & KMENTA, Jan & DREZE, Jacques H., 1966. "Specification and estimation of Cobb-Douglas production function models," CORE Discussion Papers RP 12, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Matthew T. Gregg, 2009. "Cultural Persistence as Behavior Towards Risk: Evidence from the North Carolina Cherokees, 1850-1880," Journal of Income Distribution, Journal of Income Distribution, vol. 18(2), pages 3-15, June.
    2. Medhin, Haileselassie A. & Köhlin, Gunnar, 2008. "Soil Conservation and Small-Scale Food Production in Highland Ethiopia: A Stochastic Metafrontier Approach," Discussion Papers dp-08-22-efd, Resources For the Future.
    3. Laura Schmitt, 2009. "Developing and applying a soil erosion model in a data-poor context to an island in the rural Philippines," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(1), pages 19-42, February.
    4. Dorothé Yong Ngondjeb & Bernadette Dia Kamgnia & Patrick Nje & Michel Havard, 2014. "L’Évaluation économique de l'investissement dans la conservation des sols: Le cas des aménagements antiérosifs dans le bassin versant du lac Lagdo au Cameroun," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 393-410, September.
    5. Bekele, Wagayehu, 2003. "Economics of soil and water conservation," Department of Economics publications 362, Swedish University of Agricultural Sciences, Department of Economics.
    6. Coxhead, Ian, 2002. "Development and the Upland Resource Base: Economic and Policy Context, and Lessons from a Philippine Watershed," Philippine Journal of Development PJD 2002 Vol. XXIX No. 1-, Philippine Institute for Development Studies.
    7. Coxhead, Ian, 2002. "Development and the Environment in Asia: A Survey of Recent Literature," Staff Paper Series 455, University of Wisconsin, Agricultural and Applied Economics.
    8. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2006. "The Effect Of Soil Conservation On Technical Efficiency: Evidence From Central America," 2006 Annual meeting, July 23-26, Long Beach, CA 21345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Dalton, Timothy J. & Lilja, Nina K. & Johnson, Nancy & Howeler, Reinhardt, 2011. "Farmer Participatory Research and Soil Conservation in Southeast Asian Cassava Systems," World Development, Elsevier, vol. 39(12), pages 2176-2186.
    10. Liane Faltermeier & Awudu Abdulai, 2009. "The impact of water conservation and intensification technologies: empirical evidence for rice farmers in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 365-379, May.
    11. Calatrava-Leyva, Javier & Franco, Juan Agustin & Gonzalez-Roa, Maria del Carmen, 2005. "Adoption of Soil Conservation Practices in Olive Groves: The Case of Spanish Mountainous Areas," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24661, European Association of Agricultural Economists.
    12. Lapar, Ma. Lucila A. & Ehui, Simeon K., 2004. "Factors affecting adoption of dual-purpose forages in the Philippine uplands," Agricultural Systems, Elsevier, vol. 81(2), pages 95-114, August.

    More about this item

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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