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Participation in the world's first clean development mechanism forest project: The role of property rights, social capital and contractual rules

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  • Gong, Yazhen
  • Bull, Gary
  • Baylis, Kathy

Abstract

Clean Development Mechanism (CDM) forest projects are perceived as an attractive way to both help mitigate climate change and transfer income to rural poor. However, to engender participation of small-scale producers, a CDM forest project must offer sufficient incentives, while minimizing their costs of participation, all the while respecting the need for additionality. Property rights, social capital and contractual rules are critical in the success of CDM forest projects. In this paper, we ask what factors affect participation in the world's first CDM project, established in Guangxi Province, China. Using village-level surveys, we find that although the project facilitates participation through carbon pooling and a share-holding system, much of the project land remains unforested. We find that the primary reasons for the unforested regions are constrained contractual rules, property rights allocation disputes and low levels of social capital in some villages.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 6 (April)
Pages: 1292-1302

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:6:p:1292-1302

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Guangxi CDM project Transaction costs Property rights Social capital Contractual rules;

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Cited by:
  1. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
  2. Rhona Barr & Susana Mourato, 2012. "Investigating fishers’ preferences for the design of marine Payments for Environmental Services schemes," Grantham Research Institute on Climate Change and the Environment Working Papers 101, Grantham Research Institute on Climate Change and the Environment.
  3. Emily Anderson & Hisham Zerriffi, 2012. "Seeing the trees for the carbon: agroforestry for development and carbon mitigation," Climatic Change, Springer, vol. 115(3), pages 741-757, December.
  4. Makino Yamanoshita & Masahiro Amano, 2012. "Capability development of local communities for project sustainability in afforestation/reforestation clean development mechanism," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(4), pages 425-440, April.
  5. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.
  6. Fortmannm Lea & Salas, Paula Cordero & Sohngen, Brent & Roe, Brian, 2014. "Incentive contracts for environmental services and their potential in REDD," Policy Research Working Paper Series 6829, The World Bank.
  7. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
  8. Honey-Rosés, Jordi & Acuña, Vicenç & Bardina, Mònica & Brozović, Nicholas & Marcé, Rafael & Munné, Antoni & Sabater, Sergi & Termes, Montserrat & Valero, Fernando & Vega, Àlex & Schneider, Dan, 2013. "Examining the Demand for Ecosystem Services: The Value of Stream Restoration for Drinking Water Treatment Managers in the Llobregat River, Spain," Ecological Economics, Elsevier, vol. 90(C), pages 196-205.
  9. Rhona F. Barr & Salvatore Di Falco & Susana Mourato, 2011. "Income diversification, social capital and their potential role in uptake of marine Payments for Environmental Services schemes: a study from a Tanzanian fishing community," Grantham Research Institute on Climate Change and the Environment Working Papers 65, Grantham Research Institute on Climate Change and the Environment.
  10. Sommerville, Matthew & Jones, Julia P.G. & Rahajaharison, Michael & Milner-Gulland, E.J., 2010. "The role of fairness and benefit distribution in community-based Payment for Environmental Services interventions: A case study from Menabe, Madagascar," Ecological Economics, Elsevier, vol. 69(6), pages 1262-1271, April.

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