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A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya watershed, Indonesia

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  • Arifin, B.
  • Swallow, B.
  • Suyanto
  • Coe, R.

Abstract

A wide range of policy instruments have been devised and applied to support the goals of sustainable forestry management. Community forestry programs can contain elements of several of those instruments. This paper considers the design of community forestry contracts in the Sumber Jaya area of Indonesia where community forestry contracts are agreements between the Forestry Department and community groups that provide group members with time-bound leasehold rights to protection forests, on the condition that farmers abide by specified land-use restrictions and pay any required fees. Farmers perceive that the contracts represent a bundle of restrictions and inducements, some of which are explicitly stated in the contract and others that are implied by the contract. Conjoint analysis was used to quantify farmers' tradeoffs among the explicit and implicit attributes of the contracts. The results of logit and ordered logit models show that farmers are most concerned about the length of the contract, and relatively unconcerned about requirements on tree density and species composition. An implicit attribute, greater access to forestry and agroforestry extension, emerges as an important implicit attribute. The results imply that farmers in this part of Indonesia would be willing to abide by fairly strict limitations on land use, provided that they can be assured of long-term rights to the planted trees.

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File URL: http://www.worldagroforestry.org/downloads/publications/PDFs/wp15527.pdf
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Bibliographic Info

Paper provided by World Agroforestry Centre, Library Department in its series Working Papers with number b15527.

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Date of creation: 2008
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Handle: RePEc:raf:wpaper:b15527

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References

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  1. Arifin, Bustanul, 2006. "Transaction Cost Analysis of Upstream-Downstream Relations in Watershed Services: Lessons from Community-Based Forestry Management in Sumatra, Indonesia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25788, International Association of Agricultural Economists.
  2. Swallow, B. & Kallesoe, M. & Iftikhar, U. & Noordwijk, M. van & Bracer, C. & Scherr, S. & Raju, K.V. & Poats, S. & Ochieng, B. & Mallee, H. & Rumley, R., 2007. "Compensation and rewards for environmental services in the developing world framing pan-tropical analysis and comparison," Working Papers b14963, World Agroforestry Centre, Library Department.
  3. Noordwijk, M. van & Leimona, B. & Emerton, L. & Tomich, T.P. & Velarde, S.J. & Kallesoe, M. & Sekher, M & Swallow, B., 2007. "Criteria and indicators for environmental service compensation and reward mechanisms: realistic, voluntary, conditional and pro-poor," Working Papers b14964, World Agroforestry Centre, Library Department.
  4. Cubbage, Frederick & Harou, Patrice & Sills, Erin, 2007. "Policy instruments to enhance multi-functional forest management," Forest Policy and Economics, Elsevier, vol. 9(7), pages 833-851, April.
  5. Verbist, Bruno & Dinata Putra, Andree Eka & Budidarsono, Suseno, 2005. "Factors driving land use change: Effects on watershed functions in a coffee agroforestry system in Lampung, Sumatra," Agricultural Systems, Elsevier, vol. 85(3), pages 254-270, September.
  6. Sayadi, Samir & Gonzalez Roa, M. Carmen & Calatrava Requena, Javier, 2005. "Ranking versus scale rating in conjoint analysis: Evaluating landscapes in mountainous regions in southeastern Spain," Ecological Economics, Elsevier, vol. 55(4), pages 539-550, December.
  7. Kevin J. Boyle & Thomas P. Holmes & Mario F. Teisl & Brian Roe, 2001. "A Comparison of Conjoint Analysis Response Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 441-454.
  8. Klosowski, R. & Stevens, T. & Kittredge, D. & Dennis, D., 2001. "Economic incentives for coordinated management of forest land: a case study of southern New England," Forest Policy and Economics, Elsevier, vol. 2(1), pages 29-38, April.
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Cited by:
  1. Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Discussion Papers dp-14-11-efd, Resources For the Future.
  2. Bustanul Arifin, 2010. "Global Sustainability Regulation and Coffee Supply Chains in Lampung Province, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture, vol. 7(2), pages 67-89, December.
  3. Kaczan, David & Swallow, Brent M. & Adamowicz, W.L. (Vic), 2013. "Designing a payments for ecosystem services (PES) program to reduce deforestation in Tanzania: An assessment of payment approaches," Ecological Economics, Elsevier, vol. 95(C), pages 20-30.
  4. Zabel, Astrid & Engel, Stefanie, 2010. "Performance payments: A new strategy to conserve large carnivores in the tropics?," Ecological Economics, Elsevier, vol. 70(2), pages 405-412, December.
  5. Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Working Papers in Economics 591, University of Gothenburg, Department of Economics.
  6. Eugene E. Ezebilo, 2012. "Forest Stakeholder Participation in Improving Game Habitat in Swedish Forests," Sustainability, MDPI, Open Access Journal, vol. 4(7), pages 1580-1595, July.
  7. Kaczan, David & Swallow, Brent M. & Adamowicz, Wiktor L., 2011. "Payment for Ecosystem Services (PES) scheme design in rural Tanzania: Famers’ preferences for enforcement and payment options," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103673, Agricultural and Applied Economics Association.

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