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Soil conservation and consumption risk in a model of low-income agriculture
Shively, Gerald E.
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This paper applies a dynamic model to examine the incentives and consumption risks associated with investments in soil conservation for small hillside farms in the Philippines. The author compares model results with observed data on soil conservation practices. The model results predict consumption risks for small farms lead to inefficient adoption of soil conservation practices, which aligns with the observed trends in soil conservation; adoption patterns are strongly influenced by the risk of the conservation technique, the relative risk vulnerability of individual farms, and the farm size.