Land Tenure Reforms and Land Conservation Investments in China ¨C What Does Real Option Value Theory Tell Us?
Land conservation investments can make an important contribution to avoidance and mitigation of land degradation. Lack of tenure security and land transferability may, however, limit the extent to which farmers undertake such investments. Using real option value theory, this paper investigates the expected impact of the market-oriented tenure reforms in China since 1998 on land conservation investment incentives. It postulates that the reforms are more likely to elicit land conservation investments in areas where land markets are developing. This paper further argues benefits of the land tenure reforms will be underestimated if only the intrinsic but not the time value of changes in the investment incentives will be considered. The findings obtained from this research provide a better understanding of the relationship between the land tenure reforms and land conservation investments, and are likely to serve sustainable land management in China and elsewhere.
Volume (Year): 3 (2013)
Issue (Month): (August)
|Contact details of provider:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
Web page: http://www.bapress.ca
|Order Information:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
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.:
- 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.
- Wesseler, Justus, 2009. "The Santaniello theorem of irreversible benefits," MPRA Paper 25602, University Library of Munich, Germany.
- Banerjee, Abhijit V. & Ghatak, Maitreesh, 2004.
"Eviction threats and investment incentives,"
Journal of Development Economics,
Elsevier, vol. 74(2), pages 469-488, August.
- Abhijit Banerjee & Maitreesh Ghatak, 2003. "Eviction Threats and Investment Incentives," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 39, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Nancy Bockstael, 2008. "An Empirical Examination of the Timing of Land Conversions in the Presence of Farmland Preservation Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 613-626.
- Jacoby, Hanan G. & Li, Guo & Rozelle, Scott, 2002.
"Hazards Of Expropriation:Tenure Insecurity And Investment In Rural China,"
11960, University of California, Davis, Department of Agricultural and Resource Economics.
- 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.
- Tan, Rong & Qu, Futian & Heerink, Nico & Mettepenningen, Evy, 2011. "Rural to urban land conversion in China — How large is the over-conversion and what are its welfare implications?," China Economic Review, Elsevier, vol. 22(4), pages 474-484.
- Deininger, Klaus & Jin, Songqing, 2006.
"Tenure security and land-related investment: Evidence from Ethiopia,"
European Economic Review,
Elsevier, vol. 50(5), pages 1245-1277, July.
- Deininger, Klaus & Jin, Songqing & Adenew, Berhanu & Gebre-Selassie, Samuel & Nega, Berhanu, 2003. "Tenure security and land-related investment - evidence from Ethiopia," Policy Research Working Paper Series 2991, The World Bank.
- Stein Holden & Hailu Yohannes, 2002.
"Land Redistribution, Tenure Insecurity, and Intensity of Production: A Study of Farm Households in Southern Ethiopia,"
University of Wisconsin Press, vol. 78(4), pages 573-590.
- Holden, Stein & Yohannes, Hailu, 2001. "Land redistribution, tenure insecurity, and intensity of production: a study of farm households in southern Ethiopia," CAPRi working papers 21, International Food Policy Research Institute (IFPRI).
- Rahim, Afaf H. & van Ierland, Ekko C. & Wesseler, Justus, 2006. "Economic Incentives for Entry and Exit in Gum Arabic Agroforestry System in Sudan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25720, International Association of Agricultural Economists.
- Ho, Peter, 2005. "Institutions in Transition: Land Ownership, Property Rights, and Social Conflict in China," OUP Catalogue, Oxford University Press, number 9780199280698, December.
- Robert McDonald & Daniel Siegel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 707-727.
- Deininger, Klaus W. & Jin, Songqing, 2006.
"Securing property rights in transition: Lessons from implementation of China's rural land contracting law,"
2006 Annual meeting, July 23-26, Long Beach, CA
21465, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Deininger, Klaus & Jin, Songqing, 2009. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 22-38, May.
- Deininger, Klaus & Jin, Songqing, 2007. "Securing property rights in transition: lessons from implementation of China's rural land contracting law," Policy Research Working Paper Series 4447, The World Bank.
- Robert Weaver & Justus Wessler, 2004. "Monopolistic pricing power for transgenic crops when technology adopters face irreversible benefits and costs," Applied Economics Letters, Taylor & Francis Journals, vol. 11(15), pages 969-973.
- Ruth Vargas Hill, 2010. "Investment and Abandonment Behavior of Rural Households: An Empirical Investigation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1065-1086.
- Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," World Bank Economic Review, World Bank Group, vol. 5(1), pages 135-53, January.
- Wong, Kit Pong, 2007. "The effect of uncertainty on investment timing in a real options model," Journal of Economic Dynamics and Control, Elsevier, vol. 31(7), pages 2152-2167, July.
- Sarkar, Sudipto, 2000. "On the investment-uncertainty relationship in a real options model," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 219-225, February.
- Jan Hinrichs & Oliver Musshoff & Martin Odening, 2008. "Economic hysteresis in hog production," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 333-340.
- repec:ags:aaea12:126779 is not listed on IDEAS
- Janis M. Carey & David Zilberman, 2002. "A Model of Investment under Uncertainty: Modern Irrigation Technology and Emerging Markets in Water," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 171-183.
- Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
- Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
- McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
- Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele A. & Mmbando, Frank & Mekuria, Mulugetta, 2012. "Interdependence in Farmer Technology Adoption Decisions in Smallholder Systems: Joint Estimation of Investments in Sustainable Agricultural Practices in Rural Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126791, International Association of Agricultural Economists.
- Whalley, John & Zhang, Shunming, 2007. "A numerical simulation analysis of (Hukou) labour mobility restrictions in China," Journal of Development Economics, Elsevier, vol. 83(2), pages 392-410, July.
- Wesseler, Justus & Scatasta, Sara & Nillesen, Eleonora, 2007. "The maximum incremental social tolerable irreversible costs (MISTICs) and other benefits and costs of introducing transgenic maize in the EU-15," MPRA Paper 33229, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:bap:journl:130302. 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: (Carlson)
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.