Land-use analysis of highland agricultural systems using Policy Analysis Matrix (PAM): a case study from Ban Pha Phueng and Ban Mong Luang in the Mae Chaem Catchment, Northern Thailand

The study of agricultural land use system in the highland areas of the Mae Chaem catchment was conducted by using the Policy Analysis Matrix (PAM). It aims to investigate the private and social profitability from dominant crops grown in the Karen communities (Ban Pha Phueng and Ban Mong Luang), as well as to evaluate the impact of economic and social policies on different land use systems. Extensive economic field survey was conducted in order to derive the necessary data required for creating a number of tables (i.e., Input-Output, private price and social price tables). Four crops chosen for this study are: (1) Paddy rice; (2) Upland rice; (3) Rainfed soy beans and (4) Upland corn. The results of PAM analysis revealed that paddy rice was privately and socially profitable, which should be extensively promoted. Upland rice was privately and socially non-profitable and it should be discouraged to grow on the highlands, except the improvement of yield has been made. Rainfed soy beans and upland corn were not privately profitable, but socially profitable. These two crops were taxed by the government or the society as indicated by a net negative transfer. Sensitivity analysis has been conducted by applying a number of situations on price and productivity on individual crops, so that effects from market imperfections or government policy can be determined. It has been recommended that PAM would be valid if externalities have been taken into account in the analytical process

S Sangawongse, 'Land-use analysis of highland agricultural systems using Policy Analysis Matrix (PAM): a case study from Ban Pha Phueng and Ban Mong Luang in the Mae Chaem Catchment, Northern Thailand', p.37, 1999