With limited data available, this paper captured the benefits and
trade-offs of establishing exclosures on lands with varying opportunity
costs. Focusing mainly on the environmental services of soil and
water conservation aspect of exclosures and the ensuing economic
values, our analysis indicates that establishing exclosures in degraded
less productive land yields a large positive net present value. However,
converting productive agricultural land to forestry yields a negative net
present value even under some hypothetical scenarios of high forest
product prices and a low social discount rate.