Spatial complementarity of forests and farms: accounting for ecosystem services.

From: American Journal of Agricultural Economics | Date: November 1, 2005| Author: Butry, David T.; Pattanayak, Subhrendu K. | Copyright information

Our article considers the economic contributions of forest ecosystem services, using a case study from Flores, Indonesia, in which forest protection in upstream watersheds stabilize soil and hydrological flows in downstream farms. We focus on the demand for a weak complement to the ecosystem services--farm labor--and account for spatial dependence due to economic interactions, ecosystem processes, and data integration. The estimated models have theoretically expected properties across eight...

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