UVM Theses and Dissertations
Format:
Print
Author:
Kerchner, Charles
Dept./Program:
Community Development and Applied Economics
Year:
2006
Degree:
MS
Abstract:
This thesis examines the effectiveness of market-based mechanisms in sustaining rural livelihoods in Vermont and the Dominican Republic. At first glance, the two regions where I conducted research appear to have little in common. There are clear differences between the geography, language and culture in New England and a Province on the island of Hispaniola. However, as the two articles in this thesis will show, these regions face similar obstacles to ensuring a sustainable rural economy to future generations.
In the first article, I analyze the potential for market and incentive-based approaches in achieving sustainable watershed management, in the Dominican Republic, and the relevance of these approaches to improving rural livelihoods. Specifically, I use spatially explicit analysis and interviews with 18 local forest users in the Lorna Guaconejo Scientific Reserve to determine the feasibility of Payments for Ecosystem Services (PES) from various spatial scales. The purpose of this article is to determine the suitability of Payments for Ecosystem Service (PES) schemes in achieving the desirable ends of sustainable land management in Loma Guaconejo. I find a premium paid for an organic chocolate label has provided an economic incentive for the provision of biodiversity.
However, GIs analysis indicates riparian zones on private property are in poor condition. This threatens the sustainability of local goods, such as water supply. Unless payments are developed, from beneficiaries of forest services at the local, regional and global level, forest conditions will remain sub-optimal. The second article analyzes how the "Made in Vermont" brand can be used as a marketing strategy to encourage a sustainable wood products industry. Data were collected in a nation-wide survey to understand why people connect with the "Made in Vermont" label and how they use the label in purchasing decisions. A multi-variate regression model is performed with data obtained from 675 completed surveys to examine the magnitude of the Vermont brand effect.
Findings indicate consumers are willing to pay a 6% premium for the Vermont brand above other state and regional Northern Forest origin labels. This suggests branding the place-of-origin may provide Vermont wood crafters a competitive advantage in a niche retail market. We find that there may be a niche market for farmers in the Dominican Republic and wood manufacturers in Vermont. Although, these market incentives will help the agricultural sector in both regions, it will not ensure their economic nor ecological sustainability.
A sustainable rural economy can not depend solely on consumers paying a premium for informational labels; rather it depends on institutions and policies valuing rural livelihoods. There will not be sustainable land management in Loma Guaconejo unless policies support mechanisms that provide farmers with more of the Total Economic Value (TEV) of tropical forests. Likewise, the Vermont wood manufacturing industry will not thrive unless state policies make a considerable effort to prioritize both rural livelihoods and rural working landscapes in Vermont.
In the first article, I analyze the potential for market and incentive-based approaches in achieving sustainable watershed management, in the Dominican Republic, and the relevance of these approaches to improving rural livelihoods. Specifically, I use spatially explicit analysis and interviews with 18 local forest users in the Lorna Guaconejo Scientific Reserve to determine the feasibility of Payments for Ecosystem Services (PES) from various spatial scales. The purpose of this article is to determine the suitability of Payments for Ecosystem Service (PES) schemes in achieving the desirable ends of sustainable land management in Loma Guaconejo. I find a premium paid for an organic chocolate label has provided an economic incentive for the provision of biodiversity.
However, GIs analysis indicates riparian zones on private property are in poor condition. This threatens the sustainability of local goods, such as water supply. Unless payments are developed, from beneficiaries of forest services at the local, regional and global level, forest conditions will remain sub-optimal. The second article analyzes how the "Made in Vermont" brand can be used as a marketing strategy to encourage a sustainable wood products industry. Data were collected in a nation-wide survey to understand why people connect with the "Made in Vermont" label and how they use the label in purchasing decisions. A multi-variate regression model is performed with data obtained from 675 completed surveys to examine the magnitude of the Vermont brand effect.
Findings indicate consumers are willing to pay a 6% premium for the Vermont brand above other state and regional Northern Forest origin labels. This suggests branding the place-of-origin may provide Vermont wood crafters a competitive advantage in a niche retail market. We find that there may be a niche market for farmers in the Dominican Republic and wood manufacturers in Vermont. Although, these market incentives will help the agricultural sector in both regions, it will not ensure their economic nor ecological sustainability.
A sustainable rural economy can not depend solely on consumers paying a premium for informational labels; rather it depends on institutions and policies valuing rural livelihoods. There will not be sustainable land management in Loma Guaconejo unless policies support mechanisms that provide farmers with more of the Total Economic Value (TEV) of tropical forests. Likewise, the Vermont wood manufacturing industry will not thrive unless state policies make a considerable effort to prioritize both rural livelihoods and rural working landscapes in Vermont.