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Land Use Impacts of Agricultural Intensification and Fuelwood Taxation in Uganda

The market and land-use impacts of agricultural intensification and fuelwood taxation in Uganda have been estimated using a computable general equilibrium model. Across-the-board yield growth causes total agricultural output to rise and commodity prices to fall. Forest area increases, as does land planted to cash crops. But other uses of rural natural resources decline, including the area planted to food crops. Taxing raw material inputs to fuelwood production leads to an increase in price and a decrease in consumption and production. However, forest area does not expand. Instead, it contracts a little. (JEL Q11, Q23)