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Why did the 1980s' reform of collective forestland tenure in southern China fail?

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  • Liu, Can
  • Wang, Sen
  • Liu, Hao
  • Zhu, Wenqing

Abstract

Both the reform of forestland tenure and timber market liberalization are important for forest resources management worldwide. This paper employs a unique provincial level panel dataset of 8 National Forest Resource Inventories and related price and investment data to estimate the effects on the forest of China's reforms of collective forestland tenure and timber prices in the 1980s. The system Generalized Method of Moments with robustness (controlling for endogeneity) and fixed effects models were used to identify the determinants of these reforms for the collective forest region of southern China. Our empirical results indicate that these two reforms jointly caused deforestation and forest degradation. As much as 13.5% of the total forest area was lost, and 14.9% of the forest volume was removed. Deforestation in the 1980s was followed with widespread negative long-term impacts on forest growth and afforested area. These policy failures suggest the important lesson that a well-conceived framework for monitoring and regulation needs to be in place for successfully implemented reforms.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:forpol:v:83:y:2017:i:c:p:131-141
    DOI: 10.1016/j.forpol.2017.07.008
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    4. Xu, Tuoyuan & Zhang, Xiaoxiao & Agrawal, Arun & Liu, Jinlong, 2020. "Decentralizing while centralizing: An explanation of China's collective forestry reform since the 1980s," Forest Policy and Economics, Elsevier, vol. 119(C).
    5. Liu, Shilei & Xia, Jun, 2021. "Forest harvesting restriction and forest restoration in China," Forest Policy and Economics, Elsevier, vol. 129(C).
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    7. Yan, Ruhe & Zinda, John Aloysius & Ke, Shuifa, 2020. "Designating tree crops as forest: Land competition and livelihood effects mediate tree crops impact on natural forest cover in south China," Land Use Policy, Elsevier, vol. 96(C).
    8. 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).

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