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Property Rights and Deforestation: The Choice of Fuelwood Source in Rural Viet Nam

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  • Martin Linde-Rahr

Abstract

This paper analyses the choice of fuelwood supply sources in rural Viet Nam, of which one, the open-access area, is subjected to deforestation. A random parameter logit estimation allows us to calculate cross elasticities between the various sources, using derived shadow prices for fuelwood from each source. We find a relatively stronger substitution effect emerging between user-right plantation and open-access areas. This implies that a policy intervention of fuel from plantations might be an efficient option to halt deforestation. Analysis of producer surplus measures explains the reluctance by households to accept managerial responsibilities of open-access areas.

Suggested Citation

  • Martin Linde-Rahr, 2003. "Property Rights and Deforestation: The Choice of Fuelwood Source in Rural Viet Nam," Land Economics, University of Wisconsin Press, vol. 79(2), pages 217-234.
  • Handle: RePEc:uwp:landec:v:79:y:2003:i:2:p:217-234
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters,in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    4. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, April.
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    Citations

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    Cited by:

    1. Niklas Vahlne & Erik O. Ahlgren, 2014. "Energy Efficiency at the Base of the Pyramid: A System-Based Market Model for Improved Cooking Stove Adoption," Sustainability, MDPI, Open Access Journal, vol. 6(12), pages 1-21, November.
    2. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
    3. Bluffstone, Randy, 2014. "Child Labor, the Wealth Paradox, and Common Forest Management in Bolivia," Discussion Papers edf-dp-14-16, Resources For the Future.
    4. repec:ibn:ibrjnl:v:10:y:2017:i:5:p:86-106 is not listed on IDEAS
    5. Javier Escobal & Sonia Laszlo, 2008. "Measurement Error in Access to Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 209-243, April.
    6. repec:eee:enepol:v:107:y:2017:i:c:p:507-523 is not listed on IDEAS
    7. Jumbe, Charles B.L. & Angelsen, Arild, 2011. "Modeling choice of fuelwood source among rural households in Malawi: A multinomial probit analysis," Energy Economics, Elsevier, vol. 33(5), pages 732-738, September.
    8. Bluffstone, Randy & Robinson, Elizabeth & Guthiga, Paul, 2013. "REDD+and community-controlled forests in low-income countries: Any hope for a linkage?," Ecological Economics, Elsevier, vol. 87(C), pages 43-52.
    9. Beyene, Abebe D. & Koch, Steven F., 2013. "Property rights, institutions and choice of fuelwood source in rural Ethiopia," Forest Policy and Economics, Elsevier, vol. 30(C), pages 30-38.
    10. Mekonnen, Alemu & Bluffstone, Ramdall, 2008. "Is There a Link between Common Property Forest Management and Private Tree Growing? Evidence of Behavioral Effects from Highland Ethiopia," Discussion Papers dp-08-29-efd, Resources For the Future.
    11. Gebreegziabher, Zenebe & van Kooten, G. Cornelis, 2013. "Does community and household tree planting imply increased use of wood for fuel? Evidence from Ethiopia," Forest Policy and Economics, Elsevier, vol. 34(C), pages 30-40.
    12. Palmer, Charles & Macgregor, James, 2009. "Fuelwood scarcity, energy substitution, and rural livelihoods in Namibia," Environment and Development Economics, Cambridge University Press, vol. 14(06), pages 693-715, December.
    13. Bluffstone, Randy & Robinson, Elizabeth & Guthiga, Paul, 2012. "Deforestation and forest degradation are estimated to account for between 12 percent and 20 percent of annual greenhouse gas emissions. These activities, largely in the developing world, released abou," Discussion Papers dp-12-11-efd, Resources For the Future.
    14. Mekonnen, Alemu & Ghebru, Hosaena & Holden, Stein & Kassie, Menale, 2012. "Impact of land certification on tree growing on private plots of rural households: Evidence from Ethiopia," CLTS Working Papers 3/12, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    15. John H. Y. Edwards & Christian Langpap, 2005. "Startup Costs and the Decision to Switch from Firewood to Gas Fuel," Land Economics, University of Wisconsin Press, vol. 81(4).

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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