Network Analysis as a Tool for Shaping Conservation and Development Policy: A Case Study of Timber Market Optimization in India
The incorporation of trees on farms can help to improve livelihoods and build resilience among small-holder farmers in developing countries. On-farm trees can help gen- erate additional income from commercial tree harvest as well as contribute significant environmental benefits and ecosystem services to increase resiliency. Long-term benefits from tree-based livelihoods, however, depend on sustainable timber harvesting. In this paper, we discuss the potential for network analysis as a tool to inform conservation and development decision-making. Specifically, we formulate the commercial tree market between farmers and traders as a transportation problem and optimize the transactions. We create a model of the commercial tree market in the Bilaspur district of Himachal Pradesh, India based on a detailed dataset of market interactions between farmers and timber traders, using the existing road network of this region. Using this model, we perform a maximum-flow-minimum-cost optimization for tree commodity flow. We compare the results of our optimized model with actual flow within the network, and we find a high potential to increase efficiency of market transactions within this region, noting a significant reduction to the minimum- cost flow value for our optimized model compared to the flow cost for actual transactions. We propose that using this network flow optimization model to strategically distribute permits can reduce costs associated with market transactions. Our results suggest that this direct policy action would be beneficial to the region. Finally, we suggest that cost savings could be used to establish tree planting programs to support a long-term sustainable tree market. Shaping policies to address these market inefficiencies in developing regions could help support and elevate tree-based livelihoods for farmers, traders, and industries.