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On Price Liberalization, Poverty, and Shifting Cultivation: An Example from Mexico

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  • Unai Pascual
  • Edward B. Barbier

Abstract

A bioeconomic model is used to explore the potential impacts of price policies on land use under shifting cultivation. The model is calibrated with household level and agroecological data from Yucatan, Mexico. Besides the direct effect of the liberalization of maize prices, the results indicate that changes in real wages in post-NAFTA Mexico may have non-expected effects on the labor diversification and land-use decisions of households. Further, it is shown that income may well be inversely related to both the suboptimal level of forest clearing, and the state of soil fertility, albeit in a non-monotonic (U-shape) way.

Suggested Citation

  • Unai Pascual & Edward B. Barbier, 2007. "On Price Liberalization, Poverty, and Shifting Cultivation: An Example from Mexico," Land Economics, University of Wisconsin Press, vol. 83(2), pages 192-216.
  • Handle: RePEc:uwp:landec:v:83:y:2007:i:2:p:192-216
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    References listed on IDEAS

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    5. Verner, Dorte, 2005. "Activities, employment, and wages in rural and semi-urban Mexico," Policy Research Working Paper Series 3561, The World Bank.
    6. Place, Frank & Otsuka, Keijiro, 2001. "Population, Tenure, and Natural Resource Management: The Case of Customary Land Area in Malawi," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 13-32, January.
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    8. Bruce A. Larson, 1991. "The Causes of Land Degradation along "Spontaneously" Expanding Agricultural Frontiers in the Third World: Comment," Land Economics, University of Wisconsin Press, vol. 67(2), pages 260-266.
    9. James F. Casey, 2004. "Agroforestry adoption in Mexico: using Keynes to better understand farmer decision-making," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(3), pages 505-521.
    10. Pascual, Unai, 2005. "Land use intensification potential in slash-and-burn farming through improvements in technical efficiency," Ecological Economics, Elsevier, vol. 52(4), pages 497-511, March.
    11. Bluffstone Randall A., 1995. "The Effect of Labor Market Performance on Deforestation in Developing Countries under Open Access: An Example from Rural Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 42-63, July.
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    Citations

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    Cited by:

    1. Andersen, Lykke E. & Groom, Ben & Killick, Evan & Ledezma, Juan Carlos & Palmer, Charles & Weinhold, Diana, 2017. "Modelling Land Use, Deforestation, and Policy: A Hybrid Optimisation-Heterogeneous Agent Model with Application to the Bolivian Amazon," Ecological Economics, Elsevier, vol. 135(C), pages 76-90.
    2. Unai Pascual & Roberto Martínez-Espiñeira, 2009. "The effect of environmental change and price policies on livelihoods in tropical agroforestry systems," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 433-446.
    3. Edward B. Barbier & Ramón E. López & Jacob P. Hochard, 2016. "Debt, Poverty and Resource Management in a Rural Smallholder Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 411-427, February.
    4. Arrocha, Fernando & Villena, Mauricio G., 2011. "Applying a bio-economic optimal control model to charcoal production: The case of slash and burn agriculture in Mexico
      [Aplicando un modelo bio-económico de control óptimo a la producción de carbón
      ," MPRA Paper 36361, University Library of Munich, Germany, revised 01 Feb 2012.
    5. Pascual, Unai & Martinez-Espineira, Roberto, 2006. "Poverty and environmental degradation under trade liberalization: searching for second-best policy options," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12), pages 1-24.
    6. Yoshito Takasaki & Oliver T. Coomes & Christian Abizaid & Stéphanie Brisson, 2014. "An Efficient Nonmarket Institution under Imperfect Markets: Labor Sharing for Tropical Forest Clearing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 711-732.
    7. Yoshito Takasaki, 2011. "Economic models of shifting cultivation: a review," Tsukuba Economics Working Papers 2011-006, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
    8. Godoy, Ricardo & Reyes-García, Victoria & Vadez, Vincent & Leonard, William R. & Tanner, Susan & Huanca, Toms & Wilkie, David, 2009. "The relation between forest clearance and household income among native Amazonians: Results from the Tsimane' Amazonian panel study, Bolivia," Ecological Economics, Elsevier, vol. 68(6), pages 1864-1871, April.
    9. Barbier, Edward B., 2012. "Natural capital, ecological scarcity and rural poverty," Policy Research Working Paper Series 6232, The World Bank.
    10. Edward B. Barbier & Jacob P. Hochard, 2019. "Poverty-Environment Traps," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1239-1271, November.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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