IDEAS home Printed from https://ideas.repec.org/p/hhs/gunefd/2022_002.html
   My bibliography  Save this paper

The Impact of the Three-North Shelter Forest Program on Rural Income: Evidence from Inner Mongolia in China

Author

Listed:
  • Xie, Cong

    (Peking University)

  • Xie, Lunyu

    (Renmin University of China, Beijing)

  • Xu, Jintao

    (Peking University)

  • Yi, Yuanyuan

    (Peking University)

Abstract

This paper studies the direct and spillover effects of the Three-North Shelter Forest Program (TNSFP) on rural income. Using a spatial Durbin model on a panel dataset from 101 counties in Inner Mongolia from 1993 to 2015, we show that the TNSFP had a significantly positive effect on rural income and that different afforestation methods and forest types affect rural income in different ways. The main channels include investment, income, health, and so on. The effects of the main channels include increased employment and investment due to afforestation, as well as benefits due to environmental improvement. We further show that plantation forests have a positive spatial spillover effect on rural income in the same area, and that the estimation of the income effect of afforestation is likely to be biased if the spillover effect is not taken into account. Our contribution includes demonstrating the use of spatial econometrics to identify such effects. We also call attention to the importance of choosing a forest type that is suitable to local conditions and an afforestation method that can contribute to local income growth.

Suggested Citation

  • Xie, Cong & Xie, Lunyu & Xu, Jintao & Yi, Yuanyuan, 2022. "The Impact of the Three-North Shelter Forest Program on Rural Income: Evidence from Inner Mongolia in China," EfD Discussion Paper 22-2, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2022_002
    as

    Download full text from publisher

    File URL: https://www.efdinitiative.org/sites/default/files/publications/MS%201264%20DP%2022-02%20to%20Global%20Hub%20Feb%2028.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Heerink, Nico & Bao, Xiaobin & Li, Rui & Lu, Kaiyu & Feng, Shuyi, 2009. "Soil and water conservation investments and rural development in China," China Economic Review, Elsevier, vol. 20(2), pages 288-302, June.
    2. Krishna, Kala & Ozyildirim, Ataman & Swanson, Norman R., 2003. "Trade, investment and growth: nexus, analysis and prognosis," Journal of Development Economics, Elsevier, vol. 70(2), pages 479-499, April.
    3. Queiroz, Cesar & Gautam, Surhid, 1992. "Road infrastructure and economic development : some diagnostic indicators," Policy Research Working Paper Series 921, The World Bank.
    4. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    Full references (including those not matched with items on IDEAS)

    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. Zhao, Mingxuan & Lv, Lianhong & Wu, Jing & Wang, Shen & Zhang, Nan & Bai, Zihan & Luo, Hong, 2022. "Total factor productivity of high coal-consuming industries and provincial coal consumption: Based on the dynamic spatial Durbin model," Energy, Elsevier, vol. 251(C).
    2. Anna M. Ferragina & Giulia Nunziante, 2018. "Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 335-360, September.
    3. Vicente Rios Ibañez, 2014. "What drives regional unemployment convergence?," ERSA conference papers ersa14p924, European Regional Science Association.
    4. Tomasz Kijek & Anna Matras-Bolibok, 2020. "Knowledge-intensive Specialisation and Total Factor Productivity (TFP) in the EU Regional Scope," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 181-188.
    5. Parent, Olivier & LeSage, James P., 2011. "A space-time filter for panel data models containing random effects," Computational Statistics & Data Analysis, Elsevier, vol. 55(1), pages 475-490, January.
    6. Liv Osland & Inge Thorsen, 2013. "Spatial Impacts, Local Labour Market Characteristics and Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2063-2083, August.
    7. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
    8. Ling Bai & Tianran Guo & Wei Xu & Kang Luo, 2022. "The Spatial Differentiation and Driving Forces of Ecological Welfare Performance in the Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(22), pages 1-21, November.
    9. Pablo Argüelles & Luis Orea, 2021. "Managing power supply interruptions: a bottom-up spatial (frontier) model with an application to a Spanish electricity network," Empirical Economics, Springer, vol. 60(6), pages 2867-2896, June.
    10. Karl Geisler & Mark Nichols, 2016. "Riverboat casino gambling impacts on employment and income in host and surrounding counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 101-123, January.
    11. Wu, Zhen & Woo, Su-Han & Lai, Po-Lin & Chen, Xiaoyi, 2022. "The economic impact of inland ports on regional development: Evidence from the Yangtze River region," Transport Policy, Elsevier, vol. 127(C), pages 80-91.
    12. Chun-Hung A. Lin & Suchandra Lahiri & Ching-Po Hsu, 2017. "Happiness and Globalization: A Spatial Econometric Approach," Journal of Happiness Studies, Springer, vol. 18(6), pages 1841-1857, December.
    13. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    14. Quentin Frère & Matthieu Leprince & Sonia Paty, 2014. "The Impact of Intermunicipal Cooperation on Local Public Spending," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1741-1760, June.
    15. Nijkamp Peter, 2012. "Behaviour of Humans and Behaviour of Models in Dynamic Space," Quaestiones Geographicae, Sciendo, vol. 31(2), pages 7-19, June.
    16. Lou, Bo & Ulgiati, Sergio, 2013. "Identifying the environmental support and constraints to the Chinese economic growth—An application of the Emergy Accounting method," Energy Policy, Elsevier, vol. 55(C), pages 217-233.
    17. Lenaerts, Bert & Allroggen, Florian & Malina, Robert, 2021. "The economic impact of aviation: A review on the role of market access," Journal of Air Transport Management, Elsevier, vol. 91(C).
    18. Ariane Amin & Johanna Choumert, 2015. "Development and biodiversity conservation in Sub-Saharan Africa: A spatial analysis," Economics Bulletin, AccessEcon, vol. 35(1), pages 729-744.
    19. Andrés Rodríguez-Pose & Daniel Hardy, 2015. "Cultural Diversity and Entrepreneurship in England and Wales," Environment and Planning A, , vol. 47(2), pages 392-411, February.
    20. Martínez, Constanza & León, Carlos, 2016. "The cost of collateralized borrowing in the Colombian money market: Does connectedness matter?," Journal of Financial Stability, Elsevier, vol. 25(C), pages 193-205.

    More about this item

    Keywords

    Three-North Shelter Forest Program; rural income; afforestation; spatial econometrics; spillover effect;
    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
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • 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
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    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:hhs:gunefd:2022_002. 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: Franklin Amuakwa-Mensah (email available below). General contact details of provider: https://www.efdinitiative.org/ .

    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.