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The evolution and impact of timber markets in China's southern collective forest region

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  • Li, Lanying
  • Lu, Gang
  • Shen, Yueqin

Abstract

Previous studies have paid limited attention to the evolution of timber markets and the levies of taxes and fees on timber sales. The purpose of our work is to fill this knowledge gap using qualitative and quantitative methods coupled with longitudinal data collected from three counties in the Chinese provinces of Zhejiang, Jiangxi, and Fujian. Our analysis shows that while market opening has been a key part of the economic reforms since the early 1980s, it has failed to deliver a fundamentally improved incentive structure to forest producers until very recently. This is due to the severe distortions caused by the imposition of price control and taxes and fees, in addition to the logging restrictions. These distortions caused tremendous sacrifices for so long that the local communities have not demonstrated positive responses, as reflected in changed forest condition—removal, area, and stocking. There remain challenges for the markets to function adequately, including restrictions on silvicultural practices, takings of private timberland without fair compensation, and the weak linkages between wood producers and consumers. We argue that China's experience and lesson are of broad international relevance.

Suggested Citation

  • Li, Lanying & Lu, Gang & Shen, Yueqin, 2021. "The evolution and impact of timber markets in China's southern collective forest region," Forest Policy and Economics, Elsevier, vol. 123(C).
    • Handle: RePEc:eee:forpol:v:123:y:2021:i:c:s1389934120306791
    DOI: 10.1016/j.forpol.2020.102353
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    References listed on IDEAS

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    Cited by:

    1. Ziqiang Zhang & Jie He & Ming Huang & Wei Zhou, 2023. "Is Regulation Protection? Forest Logging Quota Impact on Forest Carbon Sinks in China," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    2. Duan, Wei & Shen, Jinyu & Hogarth, Nicholas J. & Chen, Qian, 2021. "Risk preferences significantly affect household investment in timber forestry: Empirical evidence from Fujian, China," Forest Policy and Economics, Elsevier, vol. 125(C).

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