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Evolution of land tenure institutions and development of agroforestry: evidence from customary land areas of Sumatra

  • Otsuka, Keijiro
  • Suyanto, S.
  • Sonobe, Tetsushi
  • Tomich, Thomas P.

It is widely believed that land tenure insecurity under a customary tenure system leads to a socially inefficient resource allocation. This article demonstrates that the practice of granting secure individual ownership to tree planters spurs earlier tree planting, which is inefficient from the private point of view but could be efficient from the viewpoint of the global environment. Regression analysis, based on primary data collected in Sumatra, indicates that an expected increase in tenure security in fact led to early tree planting. It is also found that customary land tenure institutions have been evolving towards greater tenure security responding to increasing scarcity of land. © 2001 Elsevier Science B.V. All rights reserved.

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Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 25 (2001)
Issue (Month): 1 (June)
Pages: 85-101

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Handle: RePEc:eee:agecon:v:25:y:2001:i:1:p:85-101
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  1. Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
  2. 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.
  3. Angelsen, Arild, 1995. "Shifting cultivation and "deforestation": A study from Indonesia," World Development, Elsevier, vol. 23(10), pages 1713-1729, October.
  4. Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
  5. Frank Place & Keijiro Otsuka, 2000. "Population Pressure, Land Tenure, and Tree Resource Management in Uganda," Land Economics, University of Wisconsin Press, vol. 76(2), pages 233-251.
  6. Larson, Bruce A. & Bromley, Daniel W., 1990. "Property rights, externalities, and resource degradation : Locating the tragedy," Journal of Development Economics, Elsevier, vol. 33(2), pages 235-262, October.
  7. Anderson, Terry L & Hill, Peter J, 1990. "The Race for Property Rights," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 177-97, April.
  8. Ault, David E & Rutman, Gilbert L, 1979. "The Development of Individual Rights to Property in Tribal Africa," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 163-82, April.
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