Local institutions: Regulation and valuation of forest use—Evidence from Central Sulawesi,Indonesia

Forest management poses particular challenges as the pressure on forests is huge due to deforestation. In this context, the establishment of protected areas is a common conservation measure where institutions are put in place and sanctions regarding forest use are enforced. This paper focuses on the practice of sustainable forest management and the associated perspectives of local institutions at the rainforest margins of Lore Lindu National Park (LLNP) in Central Sulawesi, Indonesia.     

A model of shifting cultivation: can soil conservation reduce deforestation?

Shifting cultivators manage soil not only by adjusting soil use on already‐cleared lands, as in continuous cultivation, but also by clearing forests to obtain new fertile soils. This study examines the crucial link between on‐farm soil conservation and deforestation in shifting cultivation by modeling forest clearing as an investment in soil for a private farmer. More generally, by doing so the study attempts to integrate deforestation and soil conservation models which have been separately developed in the literature. Our policy goal is to arrest tropical deforestation—as destruction of global commons—caused by land degradation in shifting cultivation while improving the well‐being of poor shifting cultivators. Our integrated approach enables joint policy analyses of deforestation and land degradation. Three welfare‐enhancing policies are considered. The first is agricultural and nonagricultural subsidies affecting farm and nonfarm income opportunities. The second is fiscal and tenure policies affecting discount rates. Our question is whether the link between forest clearing and soil fertility alters the outcomes of these two standard macroeconomic policies commonly found in the literature. The third policy (or program) is various soil conservation measures affecting soil regeneration and erosivity on already‐cleared lands. This article examines a very important question which has received little attention in previous theoretical works: can soil conservation reduce deforestation? This study confirms anti‐deforestation effects of the promotion of nonfarming activities—a common and often emphasized finding in previous works—among shifting cultivators. More importantly, it also demonstrates that improving various soil conservation measures not only discourages forest clearing among shifting cultivators but also tends to have greater effects on forest protection than promoting nonfarming activities. Contrarily, agricultural price subsidy or technological progress gives rise to the opposite outcome, and lowering the farmer's discount rate or improving tenure security encourages him/her to clear more forests just to accumulate soil.     

The opportunity cost of preserving the Brazilian Amazon forest

We estimate the trade‐off between forest preservation and agricultural production for the Legal Amazon region, using census and deforestation data for municipalities in 2006. We use a directional distance function to represent the production possibility frontier, and then calculate the shadow price of reducing deforestation in terms of agricultural income foregone. Results indicate that, on average, to preserve 1 ha of forest, $797 in annual agricultural GDP must be foregone. Using a discount rate of 10% and average forest carbon density of 132 tons per hectare, these results imply an average shadow price of $16 per ton of CO₂ permanently sequestered.     

Solving Brazil's land use puzzle: Increasing production and slowing Amazon deforestation

Brazil has become an agricultural powerhouse, producing roughly 30 % of the world’s soy and 15 % of its beef by 2013 – yet historically much of that growth has come at the expense of its native ecosystems. Since 1985, pastures and croplands have replaced nearly 65 Mha of forests and savannas in the legal Amazon. A growing body of work suggests that this paradigm of horizontal expansion of agriculture over ecosystems is outdated and brings negative social and environmental outcomes. Here we propose four strategies that can reduce deforestation, while increasing production and social wellbeing. First, eliminate land grabbing and land speculation through designation of public forests. This would clarify land tenure and limit the pool of land available for uncontrolled expansion of agriculture and ranching. Second, reduce deforestation on private properties by implementing existing mechanisms in Brazil’s Forest Code to facilitate payments for environmental services, with support from market initiatives for sustainable sourcing of agricultural products. Third, incentivize increased productivity on medium and large properties through targeted investments. By stimulating adoption of proven technologies for sustainable intensification, this would help meet Brazil’s production targets and growing international demand for agricultural products, without expanding into new production areas. Finally, foster economic, environmental and social improvements through technical assistance to small farmers. Small farmers occupy a large swath of the Amazon and often lack access to technical assistance, production technology, and markets. Providing quality technical assistance to small farmers could help them better align production practices with local opportunities; increase household income and improve livelihoods; and reduce deforestation pressure. By implementing these four strategies in a coordinated effort between public and private agents, Brazil can show the world how to reduce deforestation while increasing agricultural output, reestablishing its leadership in managing natural resources and mitigating climate change.     

Persistence of cattle ranching in the Brazilian Amazon: A spatial analysis of the rationale for beef production

Fed by demand for beef within Brazil and in global markets, the Brazilian herd grew from 147 million head of cattle in 1990 to ≈200 million in 2007. Eighty-three percent of this expansion occurred in the Amazon and this trend is expected to continue as the industry bounces back from a recent agricultural downturn. Intensification of the cattle industry has been suggested as one way to reduce pressure on forest margins and spare land for soybean or sugarcane production, and is the cornerstone of Brazil's plan for mitigation of greenhouse gas emissions. To this end, federal credit programs and research and development activities in Brazil are aligning to support intensification goals, but there is no guarantee that this push for intensification will decrease the demand for land at the forest margin and as result curb CO₂ emissions from deforestation. In this paper we use a spatially explicit rent model which incorporates the local effects of biophysical characteristics, infrastructure, land prices, and distance to markets and slaughterhouses to calculate 30-year Net Present Values (NPVs) of extensive cattle ranching across the Brazilian Amazon. We use the model to ask where extensive ranching is profitable and how land acquisition affects profitability. We estimate that between 17% and 80% of land in the Amazon would have moderate to high NPVs when ranched extensively if it were settled, i.e. if the rancher does not buy the land but acquires it through land grabbing. In addition, we estimate that between 9% and 13% of land in the Amazon is vulnerable to speculation (i.e. areas with positive NPVs only if land is settled and not purchased), which suggests that land speculation is an important driver of extensive ranching profitability, and may continue to be in the future. These results suggest that pro-intensification policies such as credit provision for improved pasture management and investment in more intensive production systems must be accompanied by implementation and enforcement of policies that alter the incentives to clear forest for pasture, discourage land speculation, and increase accountability for land management practices if intensification of the cattle sector is to deter new deforestation and displace production from low-yield, extensive cattle production systems in frontier regions of the Brazilian Amazon.     

Crossing spatial analyses and livestock economics to understand deforestation processes in the Brazilian Amazon: the case of São Félix do Xingú in South Pará

The Amazon is the largest tropical forest area on Earth, and has been undergoing rapid deforestation for the last four decades. In the Brazilian Amazon, large‐scale pasture for cattle ranching and soybean production are the main land uses, leading to a yearly deforestation rate of 0.5%. These conversions are mostly located in frontier areas distributed along the so‐called “arc of deforestation”. Within this large zone, various land use change processes are interacting through several modes of land valuation and organisation. From several case studies in the State of Pará (Brazil), the current project aims at analysing how landscape dynamics are related to infrastructure development, ecological conditions, zoning policies and to the evolution and the organisation of the production, consumption and marketing chains of livestock products. This paper presents the results for one test site, the region of São Félix do Xingú, South of Pará This region is the focus of land speculation, cattle expansion, and deforestation. Road construction, investments in electrical energy, financial credit for cattle, and the land reform policies have all fuelled this process. All these factors make this region one of the most dynamic agricultural frontiers in the Brazilian Amazon. The main objective of the paper is to improve our understanding of deforestation processes by crossing spatial analyses and 1ivestock economics.studies, and to characterise the role and impact of various natural and anthropic factors in the location and development of the main types of farmers, and their policy implications.     

REDD+ and the agriculture frontier: Understanding colonists’ utilization of the land

Given the importance of the agricultural frontier as an engine of deforestation, this paper focuses on how colonists (from the Spanish word for “colonists” that is used to describe migrants to the agricultural frontier), who are important and largely overlooked stakeholders, perceive the new climate mitigation mechanism known as Reducing Emissions from Deforestation and forest Degradation in developing countries (REDD+). We aimed (1) to document colonists’ land use, perceptions, needs, and aspirations and (2) to understand if and how they could be taken into account under REDD+ policies. The study, including multiple data collection techniques (e.g., focus group, interviews, and participatory activities), was conducted in eastern Panama. Three areas that were adjacent to the Province of Darien border were chosen because of their similar forested landscapes and varying accessibility to a main road. Our results suggest that land use preferences, culture, forest scarcity and dependency, inequalities (e.g., land use, amount of forest, and land area), and lack of technical capacities are key elements to be considered when developing a REDD+ strategy with colonist communities. We propose that halting deforestation without both considering local communities’ perceptions and giving effective alternatives could seriously undermine livelihoods.     

Reconciling rural development and ecological restoration: Strategies and policy recommendations for the Brazilian Atlantic Forest

Increased demand for both agricultural production and forest restoration may lead to increased competition for land in the next decades. Sustainably increasing cattle ranching productivity is a potential solution to reconcile different land uses, while also improving biodiversity conservation and the provision of ecosystem services. If not strategically implemented in integration with complementary policies, sustainable intensification can however result in negative environmental, economic and social effects. We analyzed the potential for sustainable intensification as a solution for a conflict between agricultural expansion and forest restoration in the Paraitinga Watershed at the Brazilian Atlantic Forest, a global biodiversity hotspot. In addition, we provide policy recommendations for sustainable development in the region, based on interviews with producers and local actors. We found that the Paraitinga Watershed has the potential to increase its cattle-ranching productivity and, as a result, relinquish spared land for other uses. This was true even in the most conservative intensification scenario considered (50% of the maximum potential productivity reached), in which 76,702 ha of pastures can be spared for other uses (46% of total pasture area). We found that restoration, apiculture and rural tourism are promising activities to promote sustainable development in the region, thus potentially increasing food production and mitigating competition for land. Our study shows that results from socioeconomic interviews and biophysical modelling of potential productivity increases offer robust insights into practical solutions on how to pursue sustainable development in one of the world’s most threatened biodiversity hotspots.     

Addressing climate change cause and effect on land cover and land use in South Asia

This paper evaluates the role of trade liberalization and agricultural intensification in mitigating climate change cause and effects on land use and emissions using a computable general equilibrium model. Our results indicate that cropland expansion triggered by climate-induced crop productivity changes results in deforestation and increases emissions in South Asia and globally. Global full trade liberalization on all goods is the optimum policy for South Asia despite significant global deforestation, but for the world, unilateral partial trade liberalization on all goods is a more appropriate policy while ensuring a considerable emissions reduction for South Asia. These results indicate that mitigation responses to climate change are location specific and no one trade policy is suitable at the regional and global levels. Lastly, agricultural intensification by improving productivity growth is the best strategy in land-based emissions mitigation, thereby avoiding the transformation of forest and pasture lands for agricultural cultivation both at regional and global levels.     

Temporal and spatial modelling of tropical deforestation: a survival analysis linking satellite and household survey data

We estimate a spatially explicit model of the forest clearance process among smallholder farmers in an agricultural frontier of southern Mexico. Our analysis takes as its point of departure a simple utility‐maximising model that suggests many possible determinants of deforestation in an economic environment characterised by missing or thin markets. Hypotheses from the model are tested on a data set that combines a time series of satellite imagery with data collected from a survey of farm households whose agricultural plots were geo‐referenced using a global positioning system (GPS). We implement a survival analysis to identify the effect of household level explanatory variables on the probability of deforestation. This approach allows us to introduce a measure of the time until clearance as a covariate, thereby affording a control for the effect of potentially important explanatory variables that vary through time but are not directly observable. In addition to identifying several variables relevant for policy analysis, including household demographics, proximity to roads, and government provision of agricultural support, model results suggest that the deforestation process is characterised by non‐linear duration dependence, with the probability of forest clearance first decreasing and then increasing with the passage of time.     

Evaluating the long‐term impacts of promoting “green” agriculture in the Amazon

Frontier development in the Brazilian Amazon has created vast areas of largely deforested landscapes. Conservation efforts in these post‐frontier zones seek to protect the remaining forest fragments and promote sustainable agricultural practices that absorb labor, meet market demand, and generate ecosystem services. Assessments of these efforts often find that rates of sustained uptake are disappointingly low and that impacts are difficult to discern, but this could be due to the short‐time frames of both the efforts themselves and their evaluation. We investigate the impacts of participation in an internationally sponsored farmer association that for 15 years promoted sustainable agricultural practices in the heavily deforested state of Rondônia, Brazil. Using data from a georeferenced four‐period panel survey of farmers in combination with remote sensing data on land use spanning the life of the association, we apply matching methods to estimate the impacts of participation. We find that membership resulted in more diversified production systems, including more land allocated to agroforestry. Members also deforested less of their farms, but this difference is not statistically significant after we control for selection bias in membership.     

Jevons paradox and the loss of natural habitat in the Argentinean Chaco: The impact of the indigenous communities’ land titling and the Forest Law in the province of Salta

The Chaco Salteño in Argentina is part of the Dry Chaco ecoregion, the largest neotropical dry forest in the world, and represents an important hotspot for deforestation and natural habitat loss due to agricultural expansion. The purpose of this article is: i) to assess systematically the role of agricultural expansion, intensification and demographics on the loss of natural habitat and ii) to understand how institutional factors contribute to direct the impact of agricultural intensification towards land sparing or Jevons paradox. We use multivariate statistical methods to assess the effect of important institutional changes, including the promulgation of the Forest Law in the Province of Salta and the titling of communal lands to Indigenous Peoples (IPs), on the loss of natural forests, shrublands and grasslands in the Chaco Salteño. Our results show that the approval of the Forest Law in Salta has been ineffective at slowing down the loss of natural habitat and is associated with the emergence of Jevons paradox via the increase in agricultural productivity. Moreover, this new institutional context appears to have increased the pressures on IPs land and encouraged preventive clearing on these lands. Finally, we detect the decreasing importance of livestock heads as drivers of natural habitat loss.     

Are small‐scale rice farmers in eastern India really inefficient? Examining the effects of microtopography on technical efficiency estimates

The article analyzes how controlling for differences in land types (defined by position on a low‐scale toposequence) affects estimates of farm technical efficiency for rice farms in eastern India. Contrasting previous research, we find that farms are considerably more technically efficient when efficiency estimates are carried out at the plot level and control for plot characteristics rather than at the farm level without such controls. Estimates show farms cultivating modern varieties are technically efficient and plots planted with traditional varieties on less productive lands (upland and midupland) operate close to the production frontier. Significant technical inefficiency is found on more productive lands (medium and lowland plots) planted with traditional rice varieties. The finding that these smallholder rain‐fed rice farms are efficient cultivators on some plots contrasts with previous findings of farm‐level inefficiency (i.e., rejects overarching explanations linked to farm operator ignorance or lack of motivation) and suggests more complex explanations are required to address the inefficiency that is present.     

Irrigation Externalities and Agricultural Sustainability in South‐eastern Nigeria

Agricultural intensification by irrigation is increasingly regarded as the key to solving food supply problems in Sub‐Saharan Africa. Conversely, mounting empirical evidence suggests that irrigation externalities might preclude long‐term sustainability of arable agriculture. Choosing between intensive irrigation schemes and less intensive farming systems is therefore, problematic. The paper examines the implications of irrigation intensification in south‐eastern Nigeria using adjacent rain‐fed farms as the counterfactual. The analyses found mixed results. When first introduced, the irrigation scheme increased marginal factor productivity and gross margins but this has subsequently declined to the extent that the marginal factor product of land has become negative. The annual yields of the irrigated farms were also less stable than those of the less intensive rain‐fed farms. These results indicate the dilemma that irrigation externalities present to sustainable agricultural policy and suggest a need to look again at the potential for developments in rain‐fed systems.     

Forest and agricultural land change in the Carpathian region—A meta-analysis of long-term patterns and drivers of change

Humans have altered land cover for centuries, and land-cover change is a main component of global change. Land use transition trajectories, such as the forest transition theory (i.e. switch from deforestation to stable or increasing forest cover), relate long term changes in land use to gradual changes in underlying drivers, such as economic development, demographic change, and urbanization. However, because only few studies examined land change over centuries, it is not clear how land cover changes during very long time-periods which are punctuated by shifts in socio-economics and policies, such as wars. Our goal here was to examine broad land change patterns and processes, and their main driving forces in Central and Eastern Europe during distinct periods of the past 250 years. We conducted a meta-analysis of 66 publications describing 102 case study locations and quantified the main forest and agricultural changes in the Carpathian region since the 18th century. These studies captured gradual changes since the peak of the Austro-Hungarian Empire up to the accession to the European Union of most of the formerly socialist countries in the study region. Agricultural land-use increased during the Austro-Hungarian Empire in 70% of the case studies, but dropped sharply during and especially after the collapse of the Socialism (over 70% of the cases). The highest rates of abandonment occurred between 1990 and 2000. The Carpathian region experienced forest transition during the Interwar period (93% of the cases), and the forest expansion trend persisted after the collapse of Socialism (70% of the cases). In terms of the drivers, institutional and economic factors were most influential in shaping deforestation and agricultural expansion, while socio-demographics and institutional shifts were the key drivers of land abandonment. Our study highlights the drastic effects that socio-economic and institutional changes can have on land-use and land-cover change, and the value of longitudinal studies of land change to uncover these effects.     

Technological and policy options for sustainable agricultural intensification in eastern Uganda

This article presents a bio‐economic household model, which has been developed to assess the potential impacts of agricultural intensification efforts on economic and ecological indicators in eastern Uganda. A study region in the Lake Victoria Crescent was selected with comparative advantages for intensive agricultural production: high agricultural potential, high market access, and high population density. However, current production is characterized by low input–output systems revealing a discrepancy between development opportunities and actual development outcomes. Based on a farmer participatory research approach, production methods were introduced in the study region aimed at fostering sustainable agricultural development. Data from two community surveys, two comprehensive household and plot level surveys, and farm‐trial data were used to develop and calibrate bio‐economic models for four representative household types. Model scenarios reveal that farm households in eastern Uganda would not pursue sustainable intensification under current socio‐economic conditions. The market environment has to be improved substantially, i.e., transaction and transportation costs have to be reduced, innovative credit schemes for smallholders have to be introduced, and alternative forms of labor acquisition have to be promoted, to provide sufficient economic incentives for the adoption of environmentally sound production methods. In addition, agricultural service provision needs to be reformed and more agricultural research is needed for new and better‐targeted technologies.     

Private property and Mennonites are major drivers of forest cover loss in central Yucatan Peninsula,Mexico

The role of land tenure and Mennonites as drivers of deforestation in the Central Yucatan Peninsula has not been empirically assessed. We evaluate different drivers and their relationship to forest cover change between 1986 and 2015 and assess how land tenure and Mennonite communities impact forest cover loss in the Municipality of Hopelchen, Campeche, Mexico. This study shows that forest cover loss has increased in the last decade (2005–2015), and that land tenure regime type is associated with this loss. Throughout the study period, statistical comparisons show rates of forest cover loss were significantly higher in private and federal property compared to forests in ejidos (communal property). Forest cover loss in Mennonite private property was also significantly higher than in non-Mennonite owned private property. The role of land tenure and the expansion of the agroindustrial production model as major drivers of forest cover loss in the region provide important insight into developing municipal land use plans and conservation strategies to reduce deforestation. Programs, incentives and policy directed towards forest conservation in the region that typically target ejido communities, will need to consider the growing trend of private property expansion within federal lands and work more closely with private property owners including Mennonite communities if deforestation reduction programs are to be successful.     

Deprived land-use intensification in shifting cultivation: the population pressure hypothesis revisited

This article provides a theoretical framework, based on optimal control theory, to analyze farm households' land‐use intensification decisions in forest‐based shifting cultivation (slash‐and‐burn) agroecosystems. The main results from the analysis generally coincide with the “Population Pressure Hypothesis” (PPH) as an important driver of soil degradation due to the so‐called “fallow crisis” or “deprived land‐use intensification” in shifting cultivation. However, the model also shows, from a supply perspective, that such a vicious circle of lower yields and greater forest land clearing may be avoided when the production elasticity of on‐farm labor outweighs the elasticity of substitution between farm labor and soil fertility. Furthermore, using data from shifting cultivating households from Yucatán, Mexico, we calibrate the effect of changes in population density. The numerical analysis suggests that by contrast to better‐off households, when population density increases, poorer shifting cultivating households' optimal labor allocation strategy is to further extensify land use by clearing more forest in the village common property land, or ejido land.     

Land tenure and farm management efficiency: the case of paddy and cinnamon production in customary land areas of Sumatra

This study attempts to identify the impacts of land tenure institutions on the efficiency of farm management based on a case study of lowland paddy (rice) and upland cinnamon production in customary land areas of Sumatra. While the traditional joint-family ownership system is found to exist in paddy land, more individualised ownership systems are widely observed in upland areas. Yet, we found no statistical evidence that residual profit per unit of land is affected by land tenure institutions in either the lowlands or uplands, indicating that the prevailing land tenure institutions are equally conducive to efficient farm management.     

Property rights, production technology, and deforestation: cocoa in Cameroon

In this article, we use a vintage‐capital model with risk of eviction to assess cocoa farmers' response to changes in their tenure security and to the introduction of a new, faster‐maturing cocoa variety. The model is calibrated with data from Cameroon in calendar year 2000, and then used to simulate the effects of institutional and technical change on farmer welfare and deforestation rates. Our findings can be summarized in three points. First, improved tenure security over cocoa fields increases farmers' consumption and welfare, but at the expense of more deforestation. Second, the introduction of new cocoa varieties with faster maturity and higher input response also unambiguously raises farmers' consumption and welfare. Doing so increases deforestation under insecure land tenure, but slows down deforestation under secure land tenure. Third, when introducing the two innovations together (more security and also new varieties), there is both an increase in welfare and a decline in deforestation. In sum, the availability of new cocoa cultivars calls for stronger tenure security, to accommodate investment in the new technology without increasing deforestation.