SEARCA - Los BaƱos - the PhilippinesCoxhead, IanMiranda, MarioMasters, WilliamMacArthur FoundationU.S.-Philippines Fulbright ProgramShively, Gerald E.2016-04-192016-04-191998Environment and Development Economics 3(1): 83-1041355-770X1469-4395http://hdl.handle.net/10919/65312Metadata only recordThis paper assesses the influences of economic policies and agricultural prices on farmers' land use decisions and the environmental consequences. The author applies a stochastic dynamic household model to study the tree planting decisions made by small holder farmers in the Philippines. The simulation results reveal that both the relative prices and the variability of the prices significantly influence tree planting choices. Although low-income farmers are wary of the risks of tree crop adoption, the aversion to risk can be with policies that make tree crops more attractive choices. This paper also discusses the influence of cropping patterns on soil erosion and local biodiversity.text/plainen-USIn CopyrightBiodiversityEconomic policyEnvironmental impactsSoil erosionTropical zonesAgricultureAgrobiodiversityModelingEconomic modeling and analysisVulnerability and riskTree cropsStochastic dynamic household modelLow-income farmsPrice riskPrice variabilityCropping patternsMangoFarm/Enterprise ScaleEconomic policies and the environment: The case of tree planting on low-income farms in the PhilippinesAbstractCopyright 1998 Cambridge University Press