Quantifying and comparing the value of non-timber forest products in the Amazon

The use of sustainable harvest practices in the tropics is often proposed as a way to maintain the environment and address the poverty issues that dominate many tropical regions of the world. In theory, the adoption of these methods can provide win-win solutions to tropical deforestation because they address the en viron men tal consequences of deforestation while increasing the welfare of forest inhabitants. However, there is little reliable data that can be used to test this hypothesis since many of the goods produced in sustainable systems do not have well-defined markets and are most often consumed at home. This paper examines the benefits of collecting and harvesting non-timber forest products in the tropics through various methods using household panel data collected in 1996 and 2000 in the Ouro Preto do Oeste region of Rondonia, Brazil. We estimate the use-value of land under forest, agriculture, and pasture and complement these estimations with census data and regession analysis. Our estimations reveal that households utilizing sustainable practices in the forms of agroforestry and the collection of non-timber forest products have significantly higher levels of diversification. We conclude that directing policy towards "win-win" strategies may not be desirable for reducing both poverty and deforestation in this region since we find no clear evidence that these can successfully be addressed simultaneously. Sustainable development policy should focus on increasing the value of the forest, or reducing the opportunity cost of leaving standing forest on the household lot, if sustainable production strategies are to be more attractive to households in the future. (c) 2005 Elsevier B.V. All rights reserved.