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Forest Tenure Reform in China: A Choice Experiment on Farmers’ Property Rights Preferences

  • Ping Qin
  • Fredrik Carlsson
  • Jintao Xu

Decentralization experiments are currently underway in the Chinese forestry sector. However, researchers and policy makers tend to ignore a key question: what do forest farmers really want from reform? This paper addresses this question using a survey-based choice experiment to investigate farmers’ preferences for various property rights attributes of a forestland contract. We found that farmers are highly concerned with the types of rights provided by a contract. Reducing perceived risks of contract termination and introducing a priority right for the renewal of an existing contract significantly increases farmers’ marginal willingness to pay for a forest contract.

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File URL: http://le.uwpress.org/cgi/reprint/87/3/473
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 87 (2011)
Issue (Month): 3 ()
Pages: 473-487

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Handle: RePEc:uwp:landec:v:87:y:2011:iii:1:p:473-487
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March.
  2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  3. Rozelle, Scott & Li, Guo, 1998. "Village Leaders and Land-Rights Formation in China," American Economic Review, American Economic Association, vol. 88(2), pages 433-38, May.
  4. Li, Guo & Rozelle, Scott & Huang, Jikun, 2000. "Land Rights, Farmer Investments Incentives, And Agricultural Production In China," Working Papers 11958, University of California, Davis, Department of Agricultural and Resource Economics.
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