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Land-use dynamics, agricultural productivity, and forest conservation policy design

Author

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  • Olli-Pekka Kuusela
  • Jussi Lintunen

Abstract

Agricultural productivity and its future path vary widely across countries, as does the price elasticity of demand for agricultural goods. These differences, driven by technology, trade exposure, development, and climate-change impacts, matter for the design of primary forest conservation policies. We develop a dynamic model with primary forests, age-structured secondary forests, and agricultural land to study forest transitions with two instruments, payments for ecosystem services (PES), and land-conversion taxes. Our central result is that the optimal PES is regime dependent.

Suggested Citation

  • Olli-Pekka Kuusela & Jussi Lintunen, 2026. "Land-use dynamics, agricultural productivity, and forest conservation policy design," WIDER Working Paper Series wp-2026-95, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2026-95
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