“…The LP model has been chosen because farm income is linear in output prices and quantities (Buongiorno and Gilless, 2003). The methodology has been used successfully for many years in operations research for both agricultural and forestry production and conservation (Merry et al, 2002;Bernet et al, 2000;Shiferaw and Holden, 2000;Delforce, 1994;Jolayemi and Olaomi, 1995;Nicholson et al, 1994;Howard, 1993;Bezuneh et al, 1988;Ahn et al, 1981), and in the empirical estimation of deforestation at the household and firm level (Kaimowitz and Angelsen, 1998). The LP model is an optimization model that identifies a production plan that maximizes peasant net annual income under various policy instruments.…”