Economics of Multiple Use Cork Oak Woodlands: Two Case Studies of Agroforestry Systems

Abstract

Jerez (Spain) and Iteimia (Tunisia) cork oak agroforestry systems have close natural environments but they differ in land property rights, labour market and economic development contexts. These human induced differences result in similarities and dissimilarities on natural resources multiple use management. In this study we apply a simplified agroforestry accounting system (AAS) in two publicly owned cork oak agroforestry systems (COAS) for an average year, assuming steady state situation, without considering both environmental outputs (private and public) and government expenditures. The study objectives are to analyse the multiple Jerez and Iteimia agroforestry system activities intra-relationships taking into account intermediate outputs and to estimate a set of on-site cork oak agroforestry economic indicators related to single activity and the COAS as whole aggregated activities. In addition, in order to estimate separately the Iteimia open access grazing resource rent and the household's self-employed labour cost, we propose a simulated pricing approach trade-off as an alternative to close substitute goods pricing method. The study results show that Jerez generates a commercial capital income loss and employees receive competitive wage rate, while undertakes a significant investment on agroforestry natural resources conservation and improvements. Opposite to Jerez, Iteimia actual management offers a positive capital income and a high household self-employed labour income on hectare basis, mainly from livestock and, in a less extent, other agroforestry land uses carried out in the local subsistence-economy. The noteworthy dependence of Iteimia households on cork oak multiple use, with a current negative impact on that resources conservation, make household subsistence-economy highly sensitive to nature conservationist policies and measures.