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Protecting Forests Through Farming. A Dynamic Model of Nontimber Forest Extraction

  • Herath Gunatileke
  • Ujjayant Chakravorty


Forest resource extraction by local communities has been cited as a major impediment to the efficient management of protected forests. This paper develops a two sector dynamic model for farming and forest resource extraction by communities living in the forest periphery. The model assumes that land under forestry is constant and households allocate their time to farming and forestry. Comparative dynamic results suggest that higher prices for agriculture output, lower input prices, better knowledge of farming techniques and a lower discount rate may result in a higher equilibrium stock of forest resources. Tobit analysis with primary data collected from the Sinharaja forest in Sri Lanka provides supportive empirical evidence. Copyright Kluwer Academic Publishers 2003

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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 24 (2003)
Issue (Month): 1 (January)
Pages: 1-26

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Handle: RePEc:kap:enreec:v:24:y:2003:i:1:p:1-26
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  1. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
  2. Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
  3. Caputo, Michael R., 1992. "Fundamental symmetries and qualitative properties in the adjustment cost model of the firm," Journal of Mathematical Economics, Elsevier, vol. 21(2), pages 99-112.
  4. LaFrance, Jeffrey T., 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(01), April.
  5. Vincent, Jeffrey R & Gillis, Malcolm, 1998. "Deforestation and Forest Land Use: A Comment," World Bank Research Observer, World Bank Group, vol. 13(1), pages 133-40, February.
  6. Caputo, Michael R., 1990. "How to do comparative dynamics on the back of an envelope in optimal control theory," Journal of Economic Dynamics and Control, Elsevier, vol. 14(3-4), pages 655-683, October.
  7. Simpson, R David & Sedjo, Roger A & Reid, John W, 1996. "Valuing Biodiversity for Use in Pharmaceutical Research," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 163-85, February.
  8. Barrett, Christopher B. & Arcese, Peter, 1995. "Are Integrated Conservation-Development Projects (ICDPs) Sustainable? On the conservation of large mammals in sub-Saharan Africa," World Development, Elsevier, vol. 23(7), pages 1073-1084, July.
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