To investigate the effect of improved property rights and, in particular, village democracy under China’s Collective Forest Tenure Reform (Tenure Reform) on household forestry investments, we estimate both tobit models and the more general Cragg models for farmers’ labor and monetary inputs into forestry, using survey data of 652 households from the southern collective forest region of China. The results reveal that the improved forestland use and disposition rights had a significant effect on household investments in forestry, while the beneficiary right did not. In addition, the results suggest that village democracy had a positive effect on households’ forestry investments. More importantly, we find that village democracy was able to significantly strengthen the investment incentive effect of the improved property rights under the Tenure Reform. These effects may be explained by the fact that village democracy improved households’ perception, cognition, and, subsequently, confidence toward, in particular, the use and disposition rights of the forests entitled to them. Therefore, the findings suggest that to increase the investment incentives of the Tenure Reform further, governments could strengthen the bundle of households’ use and disposition rights, as well as their related policies. Also, our findings indicate that governments could significantly improve the performance of public policies by effectively employing democratic procedures in the process of policy implementation.
1 November 1997 in Scandinavian Journal of Forest Research
This paper presents a short‐term econometric model for the sawlog and pulpwood markets in Finland. More specifically, the effects of structural changes in the market on the success of short‐term market modelling are investigated. Wood prices and quantities traded are stationary. Therefore, valid statistical inference using the levels of these variables is possible. Pulpwood prices were found to be directly proportional to sawlog prices during the study period, and the cross‐price effects were not statistically significant. The results indicated that the price sensitivity of wood supply in Finland increased during the 1980s and early 1990s. Nationwide collective price agreements were found to have increased the level of pulpwood supply and demand from private forests, but to have had no effect on either supply of or demand for sawlogs. Due to a structural change in the 1970s, the models estimated for the whole period cannot be used for short‐term forecasting in the 1990s. Higher‐than‐annual frequency data should be used in developing accurate short‐term forecasting models.
China’s new round tenure reform has devolved collective forests to individuals on an egalitarian basis. To balance the equity–efficiency dilemma, forestland transfers are highly advocated by policymakers. However, the forestland rental market is still inactive after the reform. To examine the role of off-farm employment in forestland transfers, a simultaneous Tobit system of equations was employed to account for the endogeneity, interdependency, and censoring issues. Accordingly, the Nelson–Olson two-stage procedure, embedded with a multivariate Tobit estimator, was applied to a nationally representative dataset. The estimation results showed that off-farm employment plays a significantly negative role in forestland rent-in, at the 5% risk level. However, off-farm activities had no significant effect on forestland rent-out. Considering China’s specific situation, a reasonable explanation is that households hold forestland as a crucial means of social security against the risk of unemployment. In both rent-in and rent-out equations, high transaction costs are one of the main obstacles impeding forestland transfer. A remarkable finding was that forestland transactions occurred with a statistically significant factor equalization effect, which would be helpful to adjust the mismatched labor–land ratio and improve the land-use efficiency.
The implementation of China’s natural forest protection project (Protection Project) in 1998 changed households’ forestry production modes in project regions, and China’s new circular collective forest tenure reform (Tenure Reform) has been implemented since 2003 with the goal of motivating household forestry production and increasing household income from forests. Policymakers expect that Tenure Reform could also stimulate households to engage in non-timber forest products (NTFPs) production in Protection Project regions. However, only a few studies have investigated the effect of Tenure Reform on household NTFP production in Protection Project regions. To fill this gap, we built an integrative conceptual framework and estimated a corresponding structural equation model (SEM) using survey data from 932 households in Protection Project regions in southwestern China. In our research framework, there are four factors, including household characteristics, labour and social capital, forestland characteristics, and the Tenure Reform, affecting household NTFP production. The results substantiate that Tenure Reform has had a significant positive effect on household NTFP production. Additionally, household and forestland characteristics have promoted household NTFP production, but quantitatively less than Tenure Reform. This report can be used to inform the government that future investment in Tenure Reform still needs to be enhanced, and policy enforcement still needs to be strengthened.
The development of the land rental market has been widely attributed to the associated institutional regime and the functioning of the off-farm labor market. However, little is known of the interaction effect of these two factors. To fill this gap, we employ a nationwide representative household dataset to investigate the effects of China’s collective forest tenure reform (CFTR) and off-farm employment on forestland transfer in China. Special interest is focused on their potential interaction effect. The Smith-Blundell instrumental variable tobit model is adopted to account for the endogeneity of off-farm employment. The estimation results show that both the tenure reform and off-farm employment significantly influence forestland transactions. However, compared to the positive effect of the reform on both renting in and renting out forestland, the effect of off-farm employment is mixed, that is, its effect is negative when forestland is rented in but positive on rent-out decisions. An important finding is that the CFTR imposes a negative enhancement effect on forestland rent-in through its interaction term with off-farm employment. In contrast, the enhancement effect on rent-out is not statistically significant, which may be due to the neutralization by the endowment effect of the CFTR.
Charcoal production is an essential energy source and income source for many people in low-income countries, such as Africa. Charcoal production is also associated with deforestation—a global issue that significantly affects the environment and ecosystems. Therefore, promoting strategies that can balance forestry protection and people’s livelihoods in low-income countries is critical. This study investigated the factors affecting Zambia’s rural households’ participation in the natural regeneration (NR) program—the program initiated by the Forest and Farm Facility program (FFF) of the United Nations Food and Agricultural Organization (FAO) in Zambia in 2015. Using household survey data collected from Choma District in Southern Zambia, this study used descriptive statistical analysis and a logit model to detect the factors that affect the use of the NR program. The results indicate that charcoal production enhances the livelihoods of rural households when forest conservation is reconciled with household income and forest-management methods that abandon traditional practices. Participation in the NR program seems to be mainly driven by household income. The results indicated that the relationship between forest-resource utilization and conservation in Choma is encouraging. The implementation of the Forest and Farm Facility program is recommended to be spread to other communities to improve both livelihoods in local communities and forest conservation.