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Efficiency of timber production in community and private forestry in Nepal

Author

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  • SAKURAI, TAKESHI
  • RAYAMAJHI, SANTOSH
  • POKHAREL, RIDISH K.
  • OTSUKA, KEIJIRO

Abstract

This study compares the management performance of timber production among three management systems in Nepal: private forestry, community forestry with collective management, and community forestry with centralized management. While collective management relies entirely on community labor for the whole management, centralized management uses community labor for the protection of forests and hired labor for silvicultural operations, for example weeding, pruning, and thinning. We found that collective community management is less costly for the protection of planted trees but allocates less labor for the management of trees than private management. We also found that centralized management of natural forests leads to higher revenue and profit than collective management. These findings support the hypothesis that, while collective management is more efficient than private management for the protection of trees due to effective mutual supervision, profit-seeking private management or centralized management is more efficient than collective management for silvicultural operations due to superior work incentives. This study, however, failed to compare efficiency of private and centralized management.

Suggested Citation

  • Sakurai, Takeshi & Rayamajhi, Santosh & Pokharel, Ridish K. & Otsuka, Keijiro, 2004. "Efficiency of timber production in community and private forestry in Nepal," Environment and Development Economics, Cambridge University Press, vol. 9(4), pages 539-561, August.
  • Handle: RePEc:cup:endeec:v:9:y:2004:i:04:p:539-561_00
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    Citations

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    Cited by:

    1. Poudel, Narayan Raj & Fuwa, Nobuhiko & Otsuka, Keijiro, 2015. "The impacts of a community forestry program on forest conditions, management intensity and revenue generation in the Dang district of Nepal," Environment and Development Economics, Cambridge University Press, vol. 20(2), pages 259-281, April.
    2. Qiuqiong Huang & Jinxia Wang & Scott Rozelle & Stephen Polasky & Yang Liu, 2013. "The Effects of Well Management and the Nature of the Aquifer on Groundwater Resources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 94-116.
    3. Takahashi, Ryo & Otsuka, Keijiro & Tilahun, Mesfin & Birhane, Emiru & Holden, Stein, 2024. "Beyond Ostrom: Randomized experiment of the impact of individualized tree rights on forest management in Ethiopia," World Development, Elsevier, vol. 178(C).
    4. Towa Tachibana & Sunit Adhikari, 2009. "Does Community-Based Management Improve Natural Resource Condition? Evidence from the Forests in Nepal," Land Economics, University of Wisconsin Press, vol. 85(1), pages 107-131.
    5. Keijiro Otsuka & Ridish Pokharel, 2014. "In search of appropriate institutions for forest management," GRIPS Discussion Papers 13-25, National Graduate Institute for Policy Studies.
    6. Shunji Oniki & Melaku Berhe & Koichi Takenaka, 2020. "Efficiency Impact of the Communal Land Distribution Program in Northern Ethiopia," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    7. Bill Buffum, 2012. "Why is There No Tragedy in These Commons? An Analysis of Forest User Groups and Forest Policy in Bhutan," Sustainability, MDPI, vol. 4(7), pages 1-18, July.
    8. Mani Nepal & Alok K. Bohara & Robert P. Berrens, 2007. "The Impacts of Social Networks and Household Forest Conservation Efforts in Rural Nepal," Land Economics, University of Wisconsin Press, vol. 83(2), pages 174-191.

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