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Forestland Reform in China: What do the Farmers Want? A Choice Experiment on Farmers’ Property Rights Preferences

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Author Info

  • Qin, Pin

    ()
    (College of Environmental Sciences and Engineering, Peking University)

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Xu, Jintao

    ()
    (College of Environmental Sciences and Engineering, Peking University)

Abstract

Various decentralization experiments are currently underway in the Chinese forestry sector. However, a key question often ignored by researchers and policy makers is what farmers really want from reform. This paper addresses this question using a survey-based choice experiment. We investigated farmers’ preferences for various property-rights attributes of a forestland contract. We found that farmers are highly concerned with what types of rights a contract provides. Reducing perceived risks of contract termination and introducing a priority right in the renewal of an old contract significantly increase farmers’ marginal willingness to pay (MWTP) for a forest contract. An extended waiting time for rights to harvest the forest reduces a farmer’s perceived value of a contract. Farmers are also concerned with the tenure length. In one region, the annual willingenss to pay for a 50-year contract is even higher than the annual willingness to pay for 25-year contract.

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File URL: http://hdl.handle.net/2077/20591
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 370.

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Length: 29 pages
Date of creation: 30 Jun 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0370

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: China; Choice experiment; Forest; MWTP; Property rights;

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  1. Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
  2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  3. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
  4. Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
  5. Kung James, Kaising, 1995. "Equal Entitlement versus Tenure Security under a Regime of Collective Property Rights: Peasants' Preference for Institutions in Post-reform Chinese Agriculture," Journal of Comparative Economics, Elsevier, vol. 21(1), pages 82-111, August.
  6. Rozelle, Scott & Li, Guo, 1998. "Village Leaders and Land-Rights Formation in China," American Economic Review, American Economic Association, vol. 88(2), pages 433-38, May.
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Cited by:
  1. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
  2. Glenk, Klaus & Fischer, Anke, 2010. "Insurance, prevention or just wait and see? Public preferences for water management strategies in the context of climate change," Ecological Economics, Elsevier, vol. 69(11), pages 2279-2291, September.
  3. Harou, Patrice A. & Zheng, Chinlong & Zhang, Daowei, 2013. "The Alternative Test in forestry," Forest Policy and Economics, Elsevier, vol. 34(C), pages 41-46.
  4. Justin Visagie & Dorrit Posel, 2011. "A reconsideration of what and who is middle class in South Africa," Working Papers 249, Economic Research Southern Africa.

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