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Devolution of tenure rights in forestland in China: Impact on investment and forest growth

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  • Yi, Yuanyuan

Abstract

I investigate whether devolution of forestland tenure rights to households in China triggered forest investment and the impact on forest conditions. I use a panel dataset of a two-round survey of over 10,000 forestland plots held by 1500 households in eight provinces before and after the devolution. Using a quasi-experimental regression approach, I find that forestland devolved to households has higher per-area-unit, yearly labor input and capital investment. I also find larger forest cover in regions devolving more. The findings support that clearly-defined and well-protected household property rights offer an effective alternative to common-pool resources management in small-scale forestry.

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  • Yi, Yuanyuan, 2023. "Devolution of tenure rights in forestland in China: Impact on investment and forest growth," Forest Policy and Economics, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:forpol:v:154:y:2023:i:c:s138993412300120x
    DOI: 10.1016/j.forpol.2023.103025
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    More about this item

    Keywords

    Devolution; Household management; Forest investment; Deforestation; China;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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