Abstract
This research focuses on tackling the issue of fertile land turning into desert in arid regions. It proposes a solution involving financial incentives based on payment for ecosystem services (PES) to encourage the transformation of privately owned sand dunes into agroforestry systems. Under the proposed mechanism, farmers plant Acacia nilotica trees along with pearl millet on sand dunes, which provides resilient economic returns in regions with harsh climatic conditions. In addition, acacia trees help to prevent crop damage on neighboring farms through stabilizing sand dunes and serving as shelterbelts. A dynamic optimization model of land-use decisions between open millet farming and acacia-based agroforestry derives optimal afforestation of sand dunes under varying PES payments, crop incomes, and farm size endowments. Results suggest that such agroforestry systems can be effective towards preventing the spread of desertification in arid regions. Further, PES incentives can improve agroforestry uptake as well as augment farmers’ livelihoods.
Published Version
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