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

Author

Listed:
  • Qin, Ping
  • Carlsson, Fredrik
  • Xu, Jinato

    (Resources for the Future)

Abstract

Various decentralization experiments are currently underway in the Chinese forestry sector. However, a key question often ignored by researchers and policymakers addresses what farmers really want from reform. This paper uses a survey-based choice experiment to investigate 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 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 willingness to pay for a 50-year contract is even higher than the annual willingness to pay for 25-year contract.

Suggested Citation

  • Qin, Ping & Carlsson, Fredrik & Xu, Jinato, 2008. "Forestland Reform in China: What Do the Farmers Want? A Choice Experiment in Farmers’ Property Rights Preferences," RFF Working Paper Series dp-08-35-rev-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-08-35-rev-efd
    as

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    File URL: http://www.rff.org/RFF/documents/EfD-DP-08-35-REV.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    China; choice experiment; forest; MWTP; property rights;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • 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
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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