The market and land-use impacts of
agricultural intensification and fuelwood taxation
in Uganda have been estimated using a comput-
able general equilibrium model. Across-the-
board yield growth causes total agricultural out-
put 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 produc-
tion 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)