Spillover effects of market-based instruments under revenue uncertainty in Jambi Province, Indonesia

Utkur Djanibekov () and Grace Villamor

No 211578, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: In the case study of Indonesia we investigated possible effects of different types of market-based instruments (MBI), including rewards and taxes, on larger farmer (landlord) that adopts MBI and spillovers on working on his land under sharecropping arrangement another farmer (tenant). Multi-period expected value model with Monte Carlo simulation and Brownian motion was used. Findings showed that high prices of MBI would increase incomes of landlord but would reduce incomes of tenant through reduced working activities at landlord due to less cultivation of labor demanding crops. In most cases the incomes of landlord would be the under the MBI scenarios than in the business-as-usual scenario. If uncertainty in revenues is considered then MBI would reduce variability in incomes of both landlord and tenant. Rewards for increasing supply rather than taxation for reducing provision of ecosystem services resulted in higher rural incomes and provision of ecosystem services.

Keywords: International Development; Marketing (search for similar items in EconPapers)
Pages: 23
Date: 2015
New Economics Papers: this item is included in nep-cse and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/211578/files/D ... 0uncertainty-868.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211578

DOI: 10.22004/ag.econ.211578

Access Statistics for this paper

More papers in 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().