Land use strategies for sustainable rural development under revenue uncertainty: A case from Indonesia

Utkur Djanibekov () and Grace B. Villamor

No 182807, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: We investigated the economic attractiveness of different land uses and possible payments for carbon in rubber monoculture and agroforest, and biodiversity in agroforest under revenue uncertainty in Jambi, Indonesia. A multi-period programming with Monte Carlo simulation and Brownian motion were used. Findings showed that farm incomes would substantially vary, and to mitigate uncertainty the farmland would be diversified. Further increase in carbon prices would result in enhancing the area of rubber monoculture and would lead to possible trade-off in agrobiodiversity. When the payments for ecosystem services are targeted for agroforest then its returns would increase and reduce farm income variability.

Keywords: Land Economics/Use; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 13
Date: 2014-08
New Economics Papers: this item is included in nep-agr, nep-env and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:182807

DOI: 10.22004/ag.econ.182807

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