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Valuing soil conservation benefits of agroforestry: contour hedgerows in the Eastern Visayas, Philippines

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  • Pattanayak, Subhrendu
  • Evan Mercer, D.

Abstract

Trees can be considered as investments made by economic agents to prevent depreciation of natural assets such as stocks of top soil and water In agroforestry systems farmers use trees in this manner by deliberately combining them with agricultural crops on the same unit of land. Although advocates of agroforestry have asserted that soil conservation is one of its primary benefits, empirical estimates of these benefits have been lacking due to temporal and spatial complexity of agroforestry systems and the nonmarket aspect of soil capital assets. This study designs and applies a bio‐economic framework for valuing the soil conservation benefits of agroforestry. The framework is tested with econometric analysis of data from surveys of households in Eastern Visayas. Philippines, where USAID/Government of Philippines introduced contour hedgerow agroforestry in 1983. By constructing a weighted soil quality index that also incorporates measures of soil fertility, texture and color in addition to erosion, we extend previous economic studies of soil resources. This index is regressed on a variety of farming and site specific bio‐physical variables. Next, we use a Cobb‐Douglas profit function to directly relate agricultural profits and soil quality. Thus, the value of soil conservation is measured as a quasi‐rent differential or the share of producer surplus associated with a change in soil quality. Because this framework assumes the existence of markets, the assumption is tested by analysing the statistical significance of consumption side variables, e.g., number of household members, on production side variables, e.g., profits. Instrumental variables are used to handle the endogeneity of the soil index in the profit equation. Seemingly unrelatedregression (SUR) analysis is used to accommodate correlation of errors across the soil and profit equations. Regression results reveal the importance of agroforestry intensity, private ownership, land fragmentation, and familiarity w
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  • Pattanayak, Subhrendu & Evan Mercer, D., 1998. "Valuing soil conservation benefits of agroforestry: contour hedgerows in the Eastern Visayas, Philippines," Agricultural Economics, Blackwell, vol. 18(1), pages 31-46, January.
  • Handle: RePEc:eee:agecon:v:18:y:1998:i:1:p:31-46
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    4. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2007. "Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-20.
    5. Laura Schmitt, 2009. "Developing and applying a soil erosion model in a data-poor context to an island in the rural Philippines," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(1), pages 19-42, February.
    6. Wu, Yu & Mullan, Katrina & Biggs, Trent & Caviglia-Harris, Jill L. & Harris, Daniel & Sills, Erin O., 2018. "Do Forests Provide Watershed Services to Local Populations in the Humid Tropics? Evidence from the Brazilian Amazon," 2018 Annual Meeting, August 5-7, Washington, D.C. 274012, Agricultural and Applied Economics Association.
    7. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2006. "The Effect Of Soil Conservation On Technical Efficiency: Evidence From Central America," 2006 Annual meeting, July 23-26, Long Beach, CA 21345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Goswami, Kishor & Choudhury, Hari Kanta & Saikia, Jitu, 2012. "Factors influencing farmers' adoption of slash and burn agriculture in North East India," Forest Policy and Economics, Elsevier, vol. 15(C), pages 146-151.
    9. Rasul, Golam & Thapa, Gopal B., 2006. "Financial and economic suitability of agroforestry as an alternative to shifting cultivation: The case of the Chittagong Hill Tracts, Bangladesh," Agricultural Systems, Elsevier, vol. 91(1-2), pages 29-50, November.
    10. Tran Huu Tuan & Henrik Lindhjem, 2008. "Meta-analysis of nature conservation values in Asia & Oceania: Data heterogeneity and benefit transfer issues," EEPSEA Research Report rr2008072, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jul 2008.
    11. Molua, Ernest L., 2005. "The economics of tropical agroforestry systems: the case of agroforestry farms in Cameroon," Forest Policy and Economics, Elsevier, vol. 7(2), pages 199-211, February.
    12. Franco, Juan Agustin & Calatrava-Leyva, Javier, 2006. "Adoption of Soil Erosion Control Practices in Southern Spain Olive Groves," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25787, International Association of Agricultural Economists.
    13. Choudhury, Hari K. & Goswami, Kishor, 2013. "Determinants of expansion of area under jatropha plantation in North East India: A Tobit analysis," Forest Policy and Economics, Elsevier, vol. 30(C), pages 46-52.
    14. André Vizinho & David Avelar & Cristina Branquinho & Tiago Capela Lourenço & Silvia Carvalho & Alice Nunes & Leonor Sucena-Paiva & Hugo Oliveira & Ana Lúcia Fonseca & Filipe Duarte Santos & Maria José, 2021. "Framework for Climate Change Adaptation of Agriculture and Forestry in Mediterranean Climate Regions," Land, MDPI, vol. 10(2), pages 1-33, February.
    15. Calatrava-Leyva, Javier & Franco, Juan Agustin & Gonzalez-Roa, Maria del Carmen, 2005. "Adoption of Soil Conservation Practices in Olive Groves: The Case of Spanish Mountainous Areas," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24661, European Association of Agricultural Economists.
    16. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    17. Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
    18. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2006. "Technical Efficiency and Adoption of Soil Conservation in El Salvador and Honduras," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25784, International Association of Agricultural Economists.
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    20. Hean, Robyn L. & Cacho, Oscar J. & Signor, Anthony & Mullen, John D., 2000. "The Potential Role of Farm Forestry in the Wheat-Sheep Zone of NSW," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123659, Australian Agricultural and Resource Economics Society.
    21. Singha, Chandan, 2021. "Marginal value of sub-watershed treatment on profit in Darjeeling district, India," Land Use Policy, Elsevier, vol. 101(C).

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