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Trust, regulation and participatory forest management: Micro-level evidence on forest governance from Ethiopia

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  • Kahsay, Goytom Abraha
  • Bulte, Erwin

Abstract

A small literature investigates the co-evolution of culture and institutions (formal regulation). We present new micro-level evidence on the relationship between culture and institutions in forest resource management. Using data on forest user groups in Ethiopia, we document a negative correlation between various measures of trust and the degree of formalization of forest monitoring and extraction. Additional analysis suggests the nature of this relation is causal: groups with low level of trust implement more extensive rules to govern monitoring and extraction of their forest resource. This is consistent with the idea that trust and rules are substitutes in natural resource management.

Suggested Citation

  • Kahsay, Goytom Abraha & Bulte, Erwin, 2019. "Trust, regulation and participatory forest management: Micro-level evidence on forest governance from Ethiopia," World Development, Elsevier, vol. 120(C), pages 118-132.
    • Handle: RePEc:eee:wdevel:v:120:y:2019:i:c:p:118-132
    DOI: 10.1016/j.worlddev.2019.04.007
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    6. Yami, M. & Mekuria, Wolde, 2022. "Challenges in the governance of community-managed forests in Ethiopia: review," Papers published in Journals (Open Access), International Water Management Institute, pages 1-14(3):147.
    7. Abay, Kibrom A. & Nigus, Halefom Yigzaw & Kahsay, Goytom Abraha & Taffesse, Alemayehu Seyoum, 2025. "Rebuilding trust in local leadership in conflict-affected settings: The impact of community-based cash transfers," IFPRI discussion papers 2370, International Food Policy Research Institute (IFPRI).
    8. Mehdi Zandebasiri & José António Filipe & Javad Soosani & Mehdi Pourhashemi & Luca Salvati & Mário Nuno Mata & Pedro Neves Mata, 2020. "An Incomplete Information Static Game Evaluating Community-Based Forest Management in Zagros, Iran," Sustainability, MDPI, vol. 12(5), pages 1-14, February.
    9. Lin, Boqiang & Ge, Jiamin, 2021. "Does institutional freedom matter for global forest carbon sinks in the face of economic development disparity?," China Economic Review, Elsevier, vol. 65(C).

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    More about this item

    Keywords

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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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