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Participatory Forest Management and the Trade-off between Current and Future Consumption of Forest Produce: Evidence from Nepal

Author

Listed:
  • UPADHYAY, BAL KRISHNA

    (Department of Economics, Tri-Chandra Campus, Tribhuvan University)

  • CHITRE, VIKAS

    (Indian School of Political Economy, Pune, Maharashtra, India)

Abstract

Institutional efficiency of the Community Forest User Groups (CFUGs) is critical in the trade-off between current and future consumption of fuel wood. This paper examines the impact of the attributes of the CFUG management and user members on households’ time preference for current consumption of fuelwood and estimates Marginal Rate of Substitution (MRS) between current and future consumption of fuel wood and Marginal Rate of Transformation (MRT) of current consumption of fuelwood into its future produce. Our findings suggest that the functioning mechanism of the CFUG that determines their institutional efficiency will be a major factor in determining the trade-off between current and future consumption of fuel wood.

Suggested Citation

  • Upadhyay, Bal Krishna & Chitre, Vikas, 2013. "Participatory Forest Management and the Trade-off between Current and Future Consumption of Forest Produce: Evidence from Nepal," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 48(2), pages 323-350.
    • Handle: RePEc:dse:indecr:0075
    as

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    More about this item

    Keywords

    Community Forestry; Participatory Decision-Making; Institutional Mechanism; Time Preference; Marginal Rate of Substitution (MRS); Marginal Rate of Transformation (MRT).;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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