His analysis has implications for poverty, deforestation and land degradation. He explicitly takes into account the fact that the households are consumers as well as producers of fuel. A macro oriented approach to deforestation is provided in the paper by Elina Uitamo. She buttresses changes in socio-economic conditions in the Philippines and how they affect deforestation in the country. Her main conclusion is that population density as well as the shares of tenant and small farms has an impact deforestation in the Philippines.
Deforestation increases with a larger share of small and tenant farms and higher population density.
Peichen Gong looks at diversification of management alternatives decision making under of uncertainty when the forest owner is risk-averse. Gong provides an empirical illustration showing that the optimal strategy is to divide the stand into two parts of equal size and harvest one part a year later than the other. This harvest strategy can significantly reduce the variance of the net present value, although at the cost of a slight decrease in the expected net present value. Diversification of the harvest decision depends on the size of the stand, the fixed harvest cost, discount rate and site quality. Many recent papers in the literature look at the role of forests in national climate policy.