Forest products as safety net, deforestation and the tragedy of the commons

Overview & Synopsis

Non-timber forest product (NTFP) are commonly used by poor agricultural house-holds of developing countries to smooth their consumption and to cope with agricultural risk. This paper explores the potential implications of this safety-net use on the land-use choice and labor allocation. We consider that the land-use is a long-run choice variable, while labor allocation is a short-term choice variable. In this context, it appears that risk reduction may have two opposite implications. In the short run, risk reduction tends to reduce the pressure on common resource extraction, while in the long run, risk reduction may tend to increase deforestation.