protection and regeneration may benefit not only the world community but
also slash-and-burn farmers.
Finally, the potential for farmers to be compensated through carbon trad-
ing for the losses they incur by switching to agroforestry land uses should be
explored further. Carbon trading could increase the likelihood of adoption of
more sustainable land use systems and is one of several environmental
improvement strategies that could be pursued without subsidies or regulations
while benefiting resource-poor forest dwellers.
Endnote
- The internal rate of return is found by setting the present value of costs equal to the
present value of benefits and solving for the discount rate. The resulting discount rate
is known as the internal rate of return and must be compared with some cutoff rate.
Typical cutoff rates in developing countries are 8–15 percent.
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