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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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  • Klemick, Heather, 2011. "Shifting cultivation, forest fallow, and externalities in ecosystem services: Evidence from the Eastern Amazon," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 95-106, January.
  • Handle: RePEc:eee:jeeman:v:61:y:2011:i:1:p:95-106
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    References listed on IDEAS

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    1. Subhrendu K. Pattanayak & David T. Butry, 2005. "Spatial Complementarity of Forests and Farms: Accounting for Ecosystem Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 995-1008.
    2. Chomitz, Kenneth M & Kumari, Kanta, 1998. "The Domestic Benefits of Tropical Forests: A Critical Review," World Bank Research Observer, World Bank Group, vol. 13(1), pages 13-35, February.
    3. Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amazônia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
    4. Witcover, Julie & Vosti, Stephen A. & Carpentier, Chantal Line & De Ara Jo Gomes, T Mara Cl Udia, 2006. "Impacts of soil quality differences on deforestation, use of cleared land, and farm income," Environment and Development Economics, Cambridge University Press, vol. 11(03), pages 343-370, June.
    5. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
    6. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
    7. George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
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    Citations

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    Cited by:

    1. Beekman, Gonne & Bulte, Erwin H., 2012. "Social norms, tenure security and soil conservation: Evidence from Burundi," Agricultural Systems, Elsevier, vol. 108(C), pages 50-63.
    2. Yoshito Takasaki, 2013. "Deforestation, forest fallowing, and soil conservation in shifting cultivation," Tsukuba Economics Working Papers 2013-003, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
    3. Wu, Yu & Mullan, Katrina & Biggs, Trent & Caviglia-Harris, Jill L. & Harris, Daniel & Sills, Erin O., 2018. "Do Forests Provide Watershed Services to Local Populations in the Humid Tropics? Evidence from the Brazilian Amazon," 2018 Annual Meeting, August 5-7, Washington, D.C. 274012, Agricultural and Applied Economics Association.
    4. Wang, Y. & Huang, J., 2018. "Do forests relieve crop thirst in the face of drought? Empirical evidence from South China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276959, International Association of Agricultural Economists.
    5. repec:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9981-2 is not listed on IDEAS
    6. 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, vol. 40(3), pages 1-17, December.
    7. Bareille, Francois & Dupraz, Pierre, 2017. "Biodiversity Productive Capacity in Mixed Farms of North-West of France: a Multi-output Primal System," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261288, European Association of Agricultural Economists.
    8. Winslow D. Hanse & Helen T. Naughton, 2013. "Social and Ecological Determinants of Land Clearing in the Brazilian Amazon: A Spatial Analysis," Land Economics, University of Wisconsin Press, vol. 89(4), pages 699-721.
    9. repec:eee:ecolec:v:152:y:2018:i:c:p:172-182 is not listed on IDEAS
    10. repec:eee:ecolec:v:138:y:2017:i:c:p:199-222 is not listed on IDEAS
    11. Hettig, Elisabeth & Lay, Jann & Sipangule, Kacana, 2015. "Drivers of households' land-use decisions - A critical review of micro-level studies in tropical regions," EFForTS Discussion Paper Series 15, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    12. Bostian, Moriah B. & Dupraz, Pierre & Minviel, Jean Joseph, 2015. "Production effects of wetland conservation: evidence from France," Working Papers 210465, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    13. Bareille, François & Dupraz, Pierre, 2016. "Biodiversity productive effects in milk farms of western France: a multi-output primal system," 149th Seminar, October 27-28, 2016, Rennes, France 244774, European Association of Agricultural Economists.
    14. 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 6668, The World Bank.

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