DEFORESTATION AND ASSET ACCUMULATION AMONG SMALL SCALE FARMERS

Yoshito Takasaki

No 21786, 2000 Annual meeting, July 30-August 2, Tampa, FL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper explores deforestation and asset accumulation among small scale farmers in tropical forests. In a two-state variable control model, forest clearing is an investment in land holdings and the productivity of forest clearing is a function of non-land assets like chainsaws. Comparative static analyses demonstrate that: (1) the addition of non-land asset accumulation options may or may not change the impacts of policy measures on deforestation, depending on labor market conditions; and (2) discount rate decreases (through for example credit subsidies) offer the prospect of a win-win scenario-- forest protection and asset accumulation-- only when an active labor market exits.

Keywords: Community/Rural/Urban Development; Land Economics/Use; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 23
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea00:21786

DOI: 10.22004/ag.econ.21786

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