Agricultursl Expansion And Deforestation

Question 1

Debate on causes of tropical deforestation

Answer 1

Population approach

Market approach

Question 2

Population approach as a cause of tropical deforestation

Answer 2

Poverty and population growth

Question 3

Market approach as a cause of tropical deforestation

Answer 3

Market factors e.g prices, costs, property rights

Question 4

Model and assumptions (3)

Answer 4

Total production X= Productivity (x) (output per ha) x land area(H)

X=xH

Where we assume land is abundant and homogenous,
Limit on expansion is costs related to accessibility (distance from centre of village) i.e more costly further away

μR² (R is radius we call b MAX)

Question 5

Model continued…
2 labour costs on farm

And labour input per ha formula

Answer 5

Q-cost of transport to field (linked to b (radius))

Cost of working on the field, set to 1.

Labour input per hectare is given by
L=1+Qb (so l varies with distance b)

Question 6

So we have model for deforestation, but what determines deforestation?

3 assumptions and 4 models

Answer 6

3 assumptions
Household preferences and objective function
Market assumptions
Property rights regime

4 models
Subsistence
Chayanovian
Open economy, private property
Open economy, open access

Question 7

Comparing models

Question 8

S

Question 9

S

Question 10

V

Question 11

Sv

Question 12

Sv

Question 13

V

Question 14

Vd

Question 15

S