IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v129y2021ics1389934121001222.html
   My bibliography  Save this article

Forest harvesting restriction and forest restoration in China

Author

Listed:
  • Liu, Shilei
  • Xia, Jun

Abstract

The logging quota scheme was established in 1987 to control over-harvesting and promoting forest restoration in China, and it is expected to remain in place for many years to come. But the scheme has rarely been subject to careful empirical scrutiny. In this paper, we develop and estimate an empirical model to disentangle its potential effects on different dimensions of the forest condition, based on a panel dataset of 28 provinces over the period of 1989–2018. Our estimations show that while the logging quota scheme was effective in halting the country's deforestation and forest degradation from the late 1980s to the early 1990s, it has played a minimal role in promoting forest restoration and regrowth by inhibiting investment in forest management. The tremendous expansions in forest area and stock volume have been driven mostly by the sustained efforts of forest protection/conservation programs and tenure reforms. We suggest the government to phase out the scheme, especially in regions with abundant commercial forests. To start off, policymakers should carry out various piloting and experimentation working with large forestry enterprises and farms.

Suggested Citation

  • Liu, Shilei & Xia, Jun, 2021. "Forest harvesting restriction and forest restoration in China," Forest Policy and Economics, Elsevier, vol. 129(C).
    • Handle: RePEc:eee:forpol:v:129:y:2021:i:c:s1389934121001222
    DOI: 10.1016/j.forpol.2021.102516
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934121001222
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2021.102516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jing Wang & Liang Feng & Paul I. Palmer & Yi Liu & Shuangxi Fang & Hartmut Bösch & Christopher W. O’Dell & Xiaoping Tang & Dongxu Yang & Lixin Liu & ChaoZong Xia, 2020. "Large Chinese land carbon sink estimated from atmospheric carbon dioxide data," Nature, Nature, vol. 586(7831), pages 720-723, October.
    2. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    3. Xiao Ke & Justin Yifu Lin & Caihui Fu & Yong Wang, 2020. "Transport Infrastructure Development and Economic Growth in China: Recent Evidence from Dynamic Panel System-GMM Analysis," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    7. Yin, Runsheng, 2016. "Empirical linkages between devolved tenure systems and forest conditions: An introduction to the literature review," Forest Policy and Economics, Elsevier, vol. 73(C), pages 271-276.
    8. Yin, Runsheng & Zulu, Leo & Qi, Jiaguo & Freudenberger, Mark & Sommerville, Matthew, 2016. "Empirical linkages between devolved tenure systems and forest conditions: Primary evidence," Forest Policy and Economics, Elsevier, vol. 73(C), pages 277-285.
    9. Liu, Can & Wang, Sen & Liu, Hao & Zhu, Wenqing, 2017. "Why did the 1980s' reform of collective forestland tenure in southern China fail?," Forest Policy and Economics, Elsevier, vol. 83(C), pages 131-141.
    10. Jing Wang & Liang Feng & Paul I. Palmer & Yi Liu & Shuangxi Fang & Hartmut Bösch & Christopher W. O’Dell & Xiaoping Tang & Dongxu Yang & Lixin Liu & ChaoZong Xia, 2020. "Publisher Correction: Large Chinese land carbon sink estimated from atmospheric carbon dioxide data," Nature, Nature, vol. 588(7837), pages 19-19, December.
    11. Gregory S. Amacher & Richard J. Brazee & Meindert Witvliet, 2001. "Royalty Systems, Government Revenues, and Forest Condition: An Application from Malaysia," Land Economics, University of Wisconsin Press, vol. 77(2), pages 300-313.
    12. Sylvie Démurger & Hou Yuanzhao & Yang Weiyong, 2007. "Forest management policies and resource balance in China: an assessment of the current situation," Post-Print halshs-00144898, HAL.
    13. Yang, hongqiang & Nie, ying & Ji, chunyi, 2010. "Study on China's timber resource shortage and import structure:natural forest protection program outlook,1998 to 2008," MPRA Paper 32738, University Library of Munich, Germany.
    14. Chi Chen & Taejin Park & Xuhui Wang & Shilong Piao & Baodong Xu & Rajiv K. Chaturvedi & Richard Fuchs & Victor Brovkin & Philippe Ciais & Rasmus Fensholt & Hans Tømmervik & Govindasamy Bala & Zaichun , 2019. "China and India lead in greening of the world through land-use management," Nature Sustainability, Nature, vol. 2(2), pages 122-129, February.
    15. Shi, Miaoying & Yin, Runsheng & Lv, Hongdi, 2017. "An empirical analysis of the driving forces of forest cover change in northeast China," Forest Policy and Economics, Elsevier, vol. 78(C), pages 78-87.
    16. Shi, Miaoying & Yin, Runsheng & Zulu, Leo & Qi, Jiaguo & Freudenberger, Mark & Sommerville, Matthew, 2016. "Empirical linkages between devolved tenure systems and forest conditions: Selected case studies and country experiences," Forest Policy and Economics, Elsevier, vol. 73(C), pages 286-293.
    17. Yin, Runsheng & Zulu, Leo & Qi, Jiaguo & Freudenberger, Mark & Sommerville, Matthew, 2016. "Empirical linkages between devolved tenure systems and forest conditions: Challenges, findings, and recommendations," Forest Policy and Economics, Elsevier, vol. 73(C), pages 294-299.
    18. Runsheng Yin & Jintao Xu & Zhou Li, 2003. "Building Institutions for Markets: Experiences and Lessons from China's Rural Forest Sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 5(3), pages 333-351, September.
    19. Na Hou & Bo Chen, 2013. "Military Expenditure And Economic Growth In Developing Countries: Evidence From System Gmm Estimates," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 183-193, June.
    20. Yin, Runsheng, 1998. "Forestry and the environment in China: the current situation and strategic choices," World Development, Elsevier, vol. 26(12), pages 2153-2167, December.
    21. Jiang, Xuemei & Gong, Peichen & Bostedt, Göran & Xu, Jintao, 2014. "Impacts of policy measures on the development of state-owned forests in northeast China: theoretical results and empirical evidence," Environment and Development Economics, Cambridge University Press, vol. 19(1), pages 74-91, February.
    22. Emi Uchida & Scott Rozelle & Jintao Xu, 2009. "Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 70-86.
    23. Zhang, Ying & Chen, Shuai, 2021. "Wood trade responses to ecological rehabilitation program: Evidence from China's new logging ban in natural forests," Forest Policy and Economics, Elsevier, vol. 122(C).
    24. Bhattarai, Madhusudan & Hammig, Michael, 2004. "Governance, economic policy, and the environmental Kuznets curve for natural tropical forests," Environment and Development Economics, Cambridge University Press, vol. 9(3), pages 367-382, July.
    25. Huang, Wei, 2019. "Forest condition change, tenure reform, and government-funded eco-environmental programs in Northeast China," Forest Policy and Economics, Elsevier, vol. 98(C), pages 67-74.
    26. Yin, Runsheng & Newman, David H., 1996. "The Effect of Catastrophic Risk on Forest Investment Decisions," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 186-197, September.
    27. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    28. Shen, Yueqin & Liao, Xianchun & Yin, Runsheng, 2006. "Measuring the socioeconomic impacts of China's Natural Forest Protection Program," Environment and Development Economics, Cambridge University Press, vol. 11(6), pages 769-788, December.
    29. Liu, Ping & Yin, Runsheng & Li, Hua, 2016. "China's forest tenure reform and institutional change at a crossroads," Forest Policy and Economics, Elsevier, vol. 72(C), pages 92-98.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu, Chang & Lin, Fanli & Li, Chaozhu & Cheng, Baodong, 2022. "Effects of designating non-public forests for ecological purposes on farmer's forestland investment: A quasi-experiment in southern China," Forest Policy and Economics, Elsevier, vol. 143(C).
    2. 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.
    3. Zhang, Qian & Cheng, Baodong & Diao, Gang & Tao, Chenlu & Wang, Can, 2023. "Does China's natural forest logging ban affect the stability of the timber import trade network?," Forest Policy and Economics, Elsevier, vol. 152(C).
    4. Zhao, Jiacheng & Liu, Jinlong & Giessen, Lukas, 2023. "How China adopted eco-friendly forest development: Lens of the dual-track mechanism," Forest Policy and Economics, Elsevier, vol. 149(C).
    5. Chen Hu & Hongxiao Zhang, 2023. "The Impact of Collective Forest Tenure Reform on Forest Carbon Sequestration Capacity—An Analysis Based on the Social–Ecological System Framework," Land, MDPI, vol. 12(9), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caravaggio, Nicola, 2020. "Economic growth and the forest development path: A theoretical re-assessment of the environmental Kuznets curve for deforestation," Forest Policy and Economics, Elsevier, vol. 118(C).
    2. Yiwen, Zhang & Kant, Shashi & Dong, Jiayun & Liu, Jinlong, 2020. "How communities restructured forest tenure throughout the top-down devolution reform: Using the case of Fujian, China," Forest Policy and Economics, Elsevier, vol. 119(C).
    3. He, Jun & Kebede, Bereket & Martin, Adrian & Gross-Camp, Nicole, 2020. "Privatization or communalization: A multi-level analysis of changes in forest property regimes in China," Ecological Economics, Elsevier, vol. 174(C).
    4. Kampelmann, Stephan & Rycx, François, 2012. "The impact of educational mismatch on firm productivity: Evidence from linked panel data," Economics of Education Review, Elsevier, vol. 31(6), pages 918-931.
    5. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    6. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    7. Quader, Syed Manzur, 2017. "Differential effect of liquidity constraints on firm growth," Review of Financial Economics, Elsevier, vol. 32(C), pages 20-29.
    8. Huang, Wei, 2019. "Forest condition change, tenure reform, and government-funded eco-environmental programs in Northeast China," Forest Policy and Economics, Elsevier, vol. 98(C), pages 67-74.
    9. Mohanty, Biswajit & Bhanumurthy, N. R. & Dastidar, Ananya Ghosh, 2017. "What explains Regional Imbalances in Infrastructure?: Evidence from Indian States," Working Papers 17/197, National Institute of Public Finance and Policy.
    10. José María ARRANZ & Carlos GARCÍA SERRANO & Virginia HERNANZ, 2013. "Active labour market policies in Spain: A macroeconomic evaluation," International Labour Review, International Labour Organization, vol. 152(2), pages 327-348, June.
    11. Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
    12. Jean-Pierre Allegret & Sana Azzabi, 2014. "Intégration financière internationale et croissance économique dans les pays émergents et en développement : le canal du développement financier," Revue d’économie du développement, De Boeck Université, vol. 22(3), pages 27-68.
    13. Baumann Robert & Engelhardt Bryan & Matheson Victor A., 2012. "Employment Effects of the 2002 Winter Olympics in Salt Lake City, Utah," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 308-317, June.
    14. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute of Labor Economics (IZA).
    15. Vusal Musayev, 2016. "Externalities in Military Spending and Growth: The Role of Natural Resources as a Channel through Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 378-391, June.
    16. Donatella Saccone, 2021. "Can the Covid19 pandemic affect the achievement of the ‘Zero Hunger’ goal? Some preliminary reflections," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(7), pages 1025-1038, September.
    17. Alfonso Díez-Minguela & Julio Martínez-Galarraga & Daniel A. Tirado Fabregat, 2013. "Why did Spanish regions not converge before the Civil War? Agglomeration and (regional) growth revisited: Spain, 1870-1930," Working Papers. Serie EC 2014-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    18. Orkhan Nadirov & Bruce Dehning, 2020. "Tax Progressivity and Entrepreneurial Dynamics," Sustainability, MDPI, vol. 12(9), pages 1-21, April.
    19. Deleidi, Matteo & Mazzucato, Mariana & Semieniuk, Gregor, 2020. "Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects," Energy Policy, Elsevier, vol. 140(C).
    20. Mykhayliv, Dariya & Zauner, Klaus G., 2017. "The impact of equity ownership groups on investment: Evidence from Ukraine," Economic Modelling, Elsevier, vol. 64(C), pages 20-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:129:y:2021:i:c:s1389934121001222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.