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Participation in the world's first clean development mechanism forest project: The role of property rights, social capital and contractual rules

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  • Gong, Yazhen
  • Bull, Gary
  • Baylis, Kathy

Abstract

Clean Development Mechanism (CDM) forest projects are perceived as an attractive way to both help mitigate climate change and transfer income to rural poor. However, to engender participation of small-scale producers, a CDM forest project must offer sufficient incentives, while minimizing their costs of participation, all the while respecting the need for additionality. Property rights, social capital and contractual rules are critical in the success of CDM forest projects. In this paper, we ask what factors affect participation in the world's first CDM project, established in Guangxi Province, China. Using village-level surveys, we find that although the project facilitates participation through carbon pooling and a share-holding system, much of the project land remains unforested. We find that the primary reasons for the unforested regions are constrained contractual rules, property rights allocation disputes and low levels of social capital in some villages.

Suggested Citation

  • Gong, Yazhen & Bull, Gary & Baylis, Kathy, 2010. "Participation in the world's first clean development mechanism forest project: The role of property rights, social capital and contractual rules," Ecological Economics, Elsevier, vol. 69(6), pages 1292-1302, April.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:6:p:1292-1302
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    Cited by:

    1. van Kooten, G. Cornelis, 2017. "Forest carbon offsets and carbon emissions trading: Problems of contracting," Forest Policy and Economics, Elsevier, vol. 75(C), pages 83-88.
    2. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    3. Makino Yamanoshita & Masahiro Amano, 2012. "Capability development of local communities for project sustainability in afforestation/reforestation clean development mechanism," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(4), pages 425-440, April.
    4. Barr, Rhona F. & Mourato, Susana, 2014. "Investigating fishers' preferences for the design of marine Payments for Environmental Services schemes," Ecological Economics, Elsevier, vol. 108(C), pages 91-103.
    5. Utkur Djanibekov & Asia Khamzina, 2016. "Stochastic Economic Assessment of Afforestation on Marginal Land in Irrigated Farming System," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 95-117, January.
    6. repec:eee:wdevel:v:99:y:2017:i:c:p:498-517 is not listed on IDEAS
    7. Sommerville, Matthew & Jones, Julia P.G. & Rahajaharison, Michael & Milner-Gulland, E.J., 2010. "The role of fairness and benefit distribution in community-based Payment for Environmental Services interventions: A case study from Menabe, Madagascar," Ecological Economics, Elsevier, vol. 69(6), pages 1262-1271, April.
    8. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
    9. Gren, Ing-Marie & Zeleke, Abenezer Aklilu, 2016. "Policy design for forest carbon sequestration: A review of the literature," Forest Policy and Economics, Elsevier, vol. 70(C), pages 128-136.
    10. Emily Anderson & Hisham Zerriffi, 2012. "Seeing the trees for the carbon: agroforestry for development and carbon mitigation," Climatic Change, Springer, vol. 115(3), pages 741-757, December.
    11. Jones, Nikoleta & Filos, Elias & Fates, Eleftherios & Dimitrakopoulos, Panayiotis G., 2015. "Exploring perceptions on participatory management of NATURA 2000 forest sites in Greece," Forest Policy and Economics, Elsevier, vol. 56(C), pages 1-8.
    12. Fortmann, Lea & Cordero-Salas, Paula & Sohngen, Brent & Brian, Roe, 2016. "Incentive Contracts for Environmental Services and their Potential in REDD," International Review of Environmental and Resource Economics, now publishers, vol. 9(3-4), pages 363-409, September.
    13. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.
    14. Rhona Barr & Susana Mourato, 2012. "Investigating fishers� preferences for the design of marine Payments for Environmental Services schemes," GRI Working Papers 101, Grantham Research Institute on Climate Change and the Environment.
    15. Clot, Sophie & Stanton, Charlotte Y., 2014. "Present bias predicts participation in payments for environmental services: Evidence from a behavioral experiment in Uganda," Ecological Economics, Elsevier, vol. 108(C), pages 162-170.
    16. Rhona F. Barr & Salvatore Di Falco & Susana Mourato, 2011. "Income diversification, social capital and their potential role in uptake of marine Payments for Environmental Services schemes: a study from a Tanzanian fishing community," GRI Working Papers 65, Grantham Research Institute on Climate Change and the Environment.
    17. Honey-Rosés, Jordi & Acuña, Vicenç & Bardina, Mònica & Brozović, Nicholas & Marcé, Rafael & Munné, Antoni & Sabater, Sergi & Termes, Montserrat & Valero, Fernando & Vega, Àlex & Schneider, Daniel W., 2013. "Examining the Demand for Ecosystem Services: The Value of Stream Restoration for Drinking Water Treatment Managers in the Llobregat River, Spain," Ecological Economics, Elsevier, vol. 90(C), pages 196-205.

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