Assessing the Economic Impact of Traditional Agroforestry Practices on Agricultural Sustainability and Climate Resilience in Rural Mexico

Abstract

This paper examines the economic impact of traditional agroforestry practices, particularly the Milpa and chinampas systems, on agricultural productivity, income stability, and resilience to climate change in rural communities across Mexico. Using econometric models, including difference -in-differences (DID) and instrumental variable (IV) regression, the study compares the outcomes of farmers who practice indigenous agroforestry versus those who rely on modern agricultural methods. The analysis demonstrates that traditional agroforestry systems significantly enhance soil health, increase biodiversity, and contribute to higher levels of economic resilience in the face of climate variability. Additionally, the paper explores the role of indigenous knowledge in shaping adaptive strategies and building long-term sustainability in agriculture. The findings highlight the potential for scaling up traditional agroforestry practices as a sustainable agricultural model with implications for both local economies and global climate change mitigation efforts.