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Do National Markets and Price Policies Affect Land Use at the Forest Margin? Evidence from the Philippines

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  • IAN COXHEAD
  • Agnes Rola

Abstract

We examine linkages between national agricultural markets and the pattern of deforestation and agricultural development in an upland watershed. Growth in the watershed has been associated with deforestation as well as increasing evidence of agricultural land quality degradation, soil erosion and diminished watershed function. We ask to what extent forces external to the watershed and the local economy, and in particular market development and associated economic policies, might influence land use and resource management decisions. The evidence indicates that national markets -- and thus policies -- may play a much larger role in determining upland farmers' land allocation decisions than is commonly assumed in the design of upland "sustainable agriculture" projects and policies.
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Suggested Citation

  • IAN COXHEAD & Agnes Rola, 1999. "Do National Markets and Price Policies Affect Land Use at the Forest Margin? Evidence from the Philippines," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 426, Wisconsin-Madison Agricultural and Applied Economics Department.
    • Handle: RePEc:wop:wisaes:426
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    File URL: http://www.aae.wisc.edu/www/pub/sps/stpap426.pdf
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    References listed on IDEAS

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    1. Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
    2. Ian Coxhead & Sisira Jayasuriya, 1994. "Technical Change in Agriculture and Land Degradation in Developing Countries: A General Equilibrium Analysis," Land Economics, University of Wisconsin Press, vol. 70(1), pages 20-37.
    3. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    4. IAN A. COXHEAD & Gerald Shively, 1995. "Measuring the Environmental Impacts of Economic Change: The Case of Land Degradation in Philippine Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 384, Wisconsin-Madison Agricultural and Applied Economics Department.
    5. Jayasuriya, S. K. & Shand, R. T., 1986. "Technical change and labor absorption in Asian agriculture: Some emerging trends," World Development, Elsevier, vol. 14(3), pages 415-428, March.
    6. Jessica D. Tjornhom & George W. Norton & Victor Gapud, 1998. "Impacts of price and exchange rate policies on pesticide use in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 18(2), pages 167-175, March.
    7. Gerald E. Shively, 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low‐income farmers in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 165-177, December.
    8. Coxhead, Ian & Shively, Gerald & Shuai, Xiaobing, 2002. "Development policies, resource constraints, and agricultural expansion on the Philippine land frontier," Environment and Development Economics, Cambridge University Press, vol. 7(2), pages 341-363, May.
    9. Edward B. Barbier, 1990. "The Farm-Level Economics of Soil Conservation: The Uplands of Java," Land Economics, University of Wisconsin Press, vol. 66(2), pages 199-211.
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    Cited by:

    1. Angelsen, Arild, 2007. "Forest cover change in space and time : combining the von Thunen and forest transition theories," Policy Research Working Paper Series 4117, The World Bank.
    2. Briones, Roehlano M., 2009. "Impact Assessment of National and Regional Policies Using the Philippine Regional General Equilibrium Model (PRGEM)," Discussion Papers DP 2009-03, Philippine Institute for Development Studies.
    3. Bayou Demeke & Ian Coxhead, 2005. "The Effect of National Policies and Labor Market on Land Use Decisions in Developing Countries: An Application of Maximum Simulated Likelihood to System of Censored Acreages with Panel Data," Others 0503007, University Library of Munich, Germany.
    4. Coxhead, Ian & Jayasuriya, Sisira, 2002. "Development Strategy, Poverty and Deforestation in the Philippines," Staff Paper Series 456, University of Wisconsin, Agricultural and Applied Economics.
    5. Caviglia-Harris, Jill L., 2005. "Cattle Accumulation and Land Use Intensification by Households in the Brazilian Amazon," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-18, October.

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