IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Determinants of Forestry Investment and Extent of Forestry Expansion by Smallholders in New Zealand

Listed author(s):
  • Dhakal, Bhubaneswor
  • Bigsby, Hugh R.
  • Cullen, Ross
Registered author(s):

    While there has been a large increase in investment in plantation forestry in New Zealand by smallholders during the past decade, there are still many smallholders who have chosen not to become involved in this land use or who are using only a portion of their potentially planted land for forestry. To understand why this is the case, this paper studies two issues, the differences between those who have and have not established plantation forests, and the factors that explain the proportion of land used in forestry by small landholders who have identified that they have potentially plantable land. Land used for forest plantations is treated as a two-step decision process, where first a landowner must decide whether they would consider planting trees at all and then secondly how much land would be planted in trees. With this approach, a double hurdle model is used to study planting decisions. Using survey data obtained from 344 landholders in four South Island districts, the results indicate that property-specific factors, such as property size, years of ownership, and ownership being part of a partnership, as well as landowner characteristics such as perceptions of tax policies being favourable for forestry, off farm income level and expectations of increasing log prices were correlated with the decision whether to establish a plantation forest. The factors determining the extent of land identified as being potentially profitable in forestry actually being used for plantation forestry include forestry tax policy, expectations of increasing log prices, regional location of a property, owner’s annual income, and area used in sheep and beef production.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Review of Applied Economics in its journal Review of Applied Economics.

    Volume (Year): 4 (2008)
    Issue (Month): 1-2 ()

    in new window

    Handle: RePEc:ags:reapec:50016
    Contact details of provider: Web page:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Shapiro, Barry Ira & Brorsen, B. Wade & Doster, D. Howard, 1992. "Adoption Of Double-Cropping Soybeans And Wheat," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(02), December.
    2. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 1-12.
    3. Reynolds, Anderson, 1990. "Analyzing Fresh Vegetable Consumption From Household Survey Data," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(02), December.
    4. Kimhi, Ayal, 1999. "Double-Hurdle and Purchase-Infrequency Demand Analysis: A Feasible Integrated Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(4), pages 425-442, December.
    5. Gregory, S. Amacher & Christine Conway, M. & Sullivan, Jay & Gregory, S. Amacher, 2003. "Econometric analyses of nonindustrial forest landowners: Is there anything left to study?," Journal of Forest Economics, Elsevier, vol. 9(2), pages 137-164.
    6. Reynolds, Anderson, 1990. "Analyzing Fresh Vegetable Consumption From Household Survey Data," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(02), pages 31-38, December.
    7. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:reapec:50016. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.