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smallholder tree-based land use systems at the farm level in terms of carbon seques-
tration, soil fertility and erosion, and long-term productivity; (ii) assess the degree
of economic risk associated with each alternative land use system of degraded
uplands; and (iii) draw policy implications related to productivity improvement and
sustainable land use in degraded uplands in order to achieve sustained livelihood
and, at the same time, protect the environment. To answer these objectives, the rest
of the paper is organized as follows. Section 14.2 presents the methodology, partic-
ularly the bioeconomic modeling procedures employed in this study. It is followed
by the results and discussion of findings in Section 14.3 and by the conclusions,
policy implications and recommendations in the last section.
14.2 Methodology
A bioeconomic analysis (Fig. 14.1) was carried out to determine the economic and
environmental impacts, including carbon sequestration benefits of tree-based farm-
ing systems vis-à-vis current cropping or land use system. The biophysical compo-
nent was modeled and simulated using Soil Changes Under Agroforestry (SCUAF)
version 4.0 (Young et al. 1998). SCUAF is a simple, deterministic model that can
be used to predict crop yield as a function of changes in soil carbon, nitrogen and
Fig. 14.1 Economic valuation framework used to quantify the impacts of alternative land use systems
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