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The estimation of long term impacts of China's key priority forestry programs on rural household incomes

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  • Liu, Can
  • Mullan, Katrina
  • Liu, Hao
  • Zhu, Wenqing
  • Rong, Qingjiao

Abstract

We use a large unique household panel dataset spanning 16 years to estimate the impacts of three Key Priority Forestry Programs (the KPFPs) in China on household incomes. The programs are the most significant of China's forest policies namely the Sloping Land Conversion Program (the SLCP), the Natural Forest Protection Program (the NFPP), and the Desertification Combating Program around Beijing and Tianjin (the DCBT). A fixed effect model with clustered standard errors is used to identify programs’ impacts based on variation in participation across households and time. In addition to estimating the total impacts of these programs, individually and in combination, we disaggregate the effects by income source, stage of policy implementation, and duration of participation. Overall, the impacts of the KPFPs on rural households’ income vary with time of enrollment and policy stage. We observe that the KPFPs in their initial stages of implementation, and for the early years of household participation, had negative, or at best neutral impacts on household incomes, in particular incomes from land. However, the later stages of the SLCP and the DCBT have tended to raise land-based incomes, and the NFPP has ceased to have a negative effect. This is likely to be in part the result of adjustments made by rural households over time in response to changes in the programs, as well as in market and environmental conditions.

Suggested Citation

  • Liu, Can & Mullan, Katrina & Liu, Hao & Zhu, Wenqing & Rong, Qingjiao, 2014. "The estimation of long term impacts of China's key priority forestry programs on rural household incomes," Journal of Forest Economics, Elsevier, vol. 20(3), pages 267-285.
    • Handle: RePEc:eee:foreco:v:20:y:2014:i:3:p:267-285
    DOI: 10.1016/j.jfe.2014.08.001
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    Cited by:

    1. Li, Lingchao & Liu, Can & Liu, Jinlong & Cheng, Baodong, 2021. "Has the Sloping Land Conversion Program in China impacted the income and employment of rural households?," Land Use Policy, Elsevier, vol. 109(C).
    2. Yuge Wang & Apurbo Sarkar & Min Li & Zehui Chen & Ahmed Khairul Hasan & Quanxing Meng & Md. Shakhawat Hossain & Md. Ashfikur Rahman, 2022. "Evaluating the Impact of Forest Tenure Reform on Farmers’ Investment in Public Welfare Forest Areas: A Case Study of Gansu Province, China," Land, MDPI, vol. 11(5), pages 1-17, May.
    3. Liu, Zhen & Li, Qiuming & Lan, Jing & Abu Hatab, Assem, 2020. "Does participation in the sloping land conversion program reduce the sensitivity of Chinese farmers to climate change?," Land Use Policy, Elsevier, vol. 99(C).
    4. Ding, Zhenmin & Yao, Shunbo, 2021. "Ecological effectiveness of payment for ecosystem services to identify incentive priority areas: Sloping land conversion program in China," Land Use Policy, Elsevier, vol. 104(C).
    5. Lu, Gang & Yin, Runsheng, 2020. "Evaluating the Evaluated Socioeconomic Impacts of China's Sloping Land Conversion Program," Ecological Economics, Elsevier, vol. 177(C).
    6. Yang Ren & Jari Kuuluvainen & Anne Toppinen & Shunbo Yao & Sami Berghäll & Heimo Karppinen & Caixia Xue & Liu Yang, 2018. "The Effect of China’s New Circular Collective Forest Tenure Reform on Household Non-Timber Forest Product Production in Natural Forest Protection Project Regions," Sustainability, MDPI, vol. 10(4), pages 1-17, April.
    7. Liu, Yue & Yao, Shunbo & Lin, Ying, 2018. "Effect of Key Priority Forestry Programs on off-farm employment: Evidence from Chinese rural households," Forest Policy and Economics, Elsevier, vol. 88(C), pages 24-37.
    8. Hong, Yan-Zhen & Chang, Hung-Hao & Dai, Yong-Wu, 2018. "Is deregulation of forest land use rights transactions associated with economic well-being and labor allocation of farm households? Empirical evidence in China," Land Use Policy, Elsevier, vol. 75(C), pages 694-701.
    9. Yuepeng Zhou & Xianlei Ma & Dengyan Ji & Nico Heerink & Xiaoping Shi & Hongbin Liu, 2018. "Does Property Rights Integrity Improve Tenure Security? Evidence from China’s Forest Reform," Sustainability, MDPI, vol. 10(6), pages 1-18, June.
    10. Qun'ou Jiang & Yuwei Cheng & Qiutong Jin & Xiangzheng Deng & Yuanjing Qi, 2015. "Simulation of Forestland Dynamics in a Typical Deforestation and Afforestation Area under Climate Scenarios," Energies, MDPI, vol. 8(10), pages 1-26, September.
    11. Wang, Ying & Zhang, Qi & Bilsborrow, Richard & Tao, Shiqi & Chen, Xiaodong & Sullivan-Wiley, Kira & Huang, Qingfeng & Li, Jiangfeng & Song, Conghe, 2020. "Effects of payments for ecosystem services programs in China on rural household labor allocation and land use: Identifying complex pathways," Land Use Policy, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Priority forestry programs; Rural households’ income; Rural development; Forest economics; Ecological restoration; China;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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