Skip to Main Content
Economics of AgroforestryAuthor(s): D. Evan Mercer; Gregory E. Frey; Frederick W. Cubbage
Source: In: Kant, S. and J.R.R. Alavalapati (eds.). Handbook of Forest Resource Economics. Earthscan from Routledge.
Publication Series: Book Chapter
Station: Southern Research Station
PDF: Download Publication (10.31 MB)
DescriptionThis chapter provides principles, literature and a case study about the economics of agroforestry. We examine necessary conditions for achieving efficiency in agroforestry system design and economic analysis tools for assessing efficiency and adoptability of agroforestry. The tools presented here (capital budgeting, linear progranuning, production frontier analysis and risk analysis) can help determine when agroforestry is a feasible option and provide arguments for cases when agroforestry systems are economically, socially and environmentally appropriate, fostering improved sustainable development for landowners, farmers and communities.The chapter closes with a case study applying the capital budgeting and real options analysis to evaluate the potential for agroforestry to augment efforts to restore bottomland hardwood forests in the Lower Mississippi Alluvial Valley. Agroforestry systems provide multiple outputs, potentially reducing risk and increasing income while also purportedly producing more ecosystem services than conventional agriculture. Our review and case study, however, provide cautionary tales about the limits of agroforestry and the need for rigorous economic research and analysis to design efficient and productive agroforestry systems and to optimize private and public investments in agroforestry.
- You may send email to firstname.lastname@example.org to request a hard copy of this publication.
- (Please specify exactly which publication you are requesting and your mailing address.)
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
CitationMercer, D. Evan; Frey, Gregory E.; Cubbage, Frederick W. 2014. Economics of Agroforestry. Chapter 13 in: Kant, S. and J.R.R. Alavalapati (eds.). Handbook of Forest Resource Economics. Earthscan from Routledge. 188-209.
Keywordscapital budgeting, linear programming, real options, silvopasture, production frontier, agroforestry
- A real options model to assess the role of flexibility in forestry and agroforestry adoption and disadoption in the Lower Mississippi Alluvial Valley
- Contribution of suppression difficulty and lessons learned in forecasting fire suppression operations productivity: A methodological approach
- Forecasting poductivity in forest fire suppression operations: A methodological approach based on suppression difficulty analysis and documented experience
XML: View XML