IDEAS home Printed from https://ideas.repec.org/p/ags/aare03/58271.html
   My bibliography  Save this paper

Tree-crop interactions and their environmental and economic implications in the presence of carbon-sequestration payments

Author

Listed:
  • Wise, Russell M.
  • Cacho, Oscar J.

Abstract

Growing trees with crops has environmental and economic implications. Trees can help prevent land degradation and increase biodiversity while at the same time allow for the continued use of the land to produce agricultural crops. In fact, growing trees alongside crops is known to improve both the productivity and sustainability of the land. However, due to high labour-input requirements, high costs of establishment, and delayed revenue returns, trees are often not economically attractive to landholders. Because of the Kyoto Protocol, and the growing emphasis on market-based solutions to environmental problems, the ability of trees to sequester and store CO2 has altered the economic landscape of agroforestry systems. The economic and management implications of carbon-sequestration payments on agroforestry systems are addressed in this study using a bioeconomic modelling approach. An agroforestry system in Indonesia is simulated using a biophysical process model. A general economic analysis of this system, from the standpoint of individual landholders, is then developed and the implications for management and policy are discussed.

Suggested Citation

  • Wise, Russell M. & Cacho, Oscar J., 2003. "Tree-crop interactions and their environmental and economic implications in the presence of carbon-sequestration payments," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58271, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:58271
    DOI: 10.22004/ag.econ.58271
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/58271/files/2003_wise.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.58271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Menz, Kenneth M. & Magcale-Macandog, Damasa & Rusastra, I Wayan (ed.), 1999. "Improving Smallholder Farming Systems in Imperata Areas of Southeast Asia: Alternatives to Shifting Cultivation," Monographs, Australian Centre for International Agricultural Research, number 114830.
    2. Cacho, Oscar, 2001. "An analysis of externalities in agroforestry systems in the presence of land degradation," Ecological Economics, Elsevier, vol. 39(1), pages 131-143, October.
    3. Wise, Russell M. & Cacho, Oscar J., 2002. "A Bioeconomic Analysis of Soil Carbon Sequestration in Agro-Forests," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125612, Australian Agricultural and Resource Economics Society.
    4. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2005. "Transaction and abatement costs of carbon-sink projects in developing countries," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 597-614, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oscar Cacho & Leslie Lipper, 2006. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 06-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Wise, Russell M. & Cacho, Oscar J., 2006. "Optimal Land-Use Decisions in the Presence of Carbon Payments and Fertilizer Subsidies: An Indonesian Case Study," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25356, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wise, Russell M. & Cacho, Oscar J., 2006. "Optimal Land-Use Decisions in the Presence of Carbon Payments and Fertilizer Subsidies: An Indonesian Case Study," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25356, International Association of Agricultural Economists.
    2. Wise, Russell M. & Cacho, Oscar J., 2008. "Bioeconomic meta-modelling of Indonesian agroforests as carbon sinks," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6772, Australian Agricultural and Resource Economics Society.
    3. Brausmann, Alexandra & Bretschger, Lucas, 2018. "Economic development on a finite planet with stochastic soil degradation," European Economic Review, Elsevier, vol. 108(C), pages 1-19.
    4. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2012. "Seeing REDD: A Microeconomic Analysis of Carbon Sequestration in Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126688, International Association of Agricultural Economists.
    5. Oscar J. Cacho & Robyn L. Hean & Russell M. Wise, 2003. "Carbon‐accounting methods and reforestation incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 153-179, June.
    6. Culas, Richard J., 2006. "Forestry, non-forest sector policies and the environment: a review," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174100, Australian Agricultural and Resource Economics Society.
    7. Md Sayed Iftekhar & David Pannell & Jacob Hawkins, 2019. "Costs of Conservation Offset Activities: The State of Publicly Available Information in Australia," Sustainability, MDPI, vol. 11(19), pages 1-13, September.
    8. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2014. "Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia," World Development, Elsevier, vol. 64(C), pages 781-790.
    9. Wise, Russell M. & Cacho, Oscar J., 2002. "A Bioeconomic Analysis of Soil Carbon Sequestration in Agro-Forests," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125612, Australian Agricultural and Resource Economics Society.
    10. Gianluca Egidi & Luca Salvati & Pavel Cudlin & Rosanna Salvia & Manuela Romagnoli, 2020. "A New ‘Lexicon’ of Land Degradation: Toward a Holistic Thinking for Complex Socioeconomic Issues," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    11. repec:ags:aare05:139338 is not listed on IDEAS
    12. Marco Zitti & Adele Sateriano & Luca Salvati, 2013. "Agricultural Profitability And Susceptibility To Soil Degradation In A Changing Mediterranean Landscape," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(1), pages 81-102, JUNE.
    13. Cerbu, Gillian A. & Sonwa, Denis J. & Pokorny, Benno, 2013. "Opportunities for and capacity barriers to the implementation of REDD+ projects with smallholder farmers: Case study of Awae and Akok, Centre and South Regions, Cameroon," Forest Policy and Economics, Elsevier, vol. 36(C), pages 60-70.
    14. Venn, Tyron J., 2005. "Financial and economic performance of long-rotation hardwood plantation investments in Queensland, Australia," Forest Policy and Economics, Elsevier, vol. 7(3), pages 437-454, March.
    15. Patterson, Murray G., 2006. "Development of ecological economics in Australia and New Zealand," Ecological Economics, Elsevier, vol. 56(3), pages 312-331, March.
    16. Moss, Jonathan & Cacho, Oscar J., 2014. "Farm-scale analysis of the potential uptake of carbon offset activities," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187402, New Zealand Agricultural and Resource Economics Society.
    17. Sloan, Sean, 2015. "The development-driven forest transition and its utility for REDD+," Ecological Economics, Elsevier, vol. 116(C), pages 1-11.
    18. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    19. Kim, Man-Keun & Peralta, Denis & McCarl, Bruce A., 2014. "Land-based greenhouse gas emission offset and leakage discounting," Ecological Economics, Elsevier, vol. 105(C), pages 265-273.
    20. Graeme J. Doole & Geoff Kaine & Zack Dorner, 2019. "The optimal diffusion of mitigation options for environmental management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), pages 354-382, April.
    21. Hegde, Ravi & Bull, Gary Q., 2011. "Performance of an agro-forestry based Payments-for-Environmental-Services project in Mozambique: A household level analysis," Ecological Economics, Elsevier, vol. 71(C), pages 122-130.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare03:58271. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.