IDEAS home Printed from https://ideas.repec.org/p/lvl/piercr/2013-08.html
   My bibliography  Save this paper

Have the Key Priority Forestry Programs Really Impacted on China's Rural Household Income

Author

Listed:
  • Can Liu Hao
  • Katrina Mullan
  • Qingjiao Rong
  • Wenqing Zhu

Abstract

We use a large unique household panel data set spanning 16 years to estimate the impacts of three major Chinese forest conservation and reforestation programs on household incomes. The programs are the most significant of China’s Key Priority Forestry Programs, namely the Sloping Land Conversion Program (the SLCP), the Natural Forest Protection Program (the NFPP), and the Desertification Combating Program around Beijing and Tianjin (the DCBT). Cluster effects with county and environment factors have been estimated by using year dummy variables. Fixed model with cluster effects has been used. In addition to estimating the total impacts of the programs, individually and in combination, we disaggregate the effects by income source, stage of policy implementation, and duration of participation. We find minimal effects on total incomes from the programs overall, which are quiet different with other research empirical results, .but the more detailed results show that the initial stages of the programs, and the early years of participation had negative or neutral effects on land-based incomes, while in more recent years, impacts have improved, and in some cases become positive.

Suggested Citation

  • Can Liu Hao & Katrina Mullan & Qingjiao Rong & Wenqing Zhu, 2013. "Have the Key Priority Forestry Programs Really Impacted on China's Rural Household Income," Working Papers PIERI 2013-08, PEP-PIERI.
  • Handle: RePEc:lvl:piercr:2013-08
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/20891
    Download Restriction: no

    References listed on IDEAS

    as
    1. Emi Uchida & Jintao Xu & Scott Rozelle, 2005. "Grain for Green: Cost-Effectiveness and Sustainability of China’s Conservation Set-Aside Program," Land Economics, University of Wisconsin Press, vol. 81(2).
    2. Jintao Xu & Ran Tao & Zhigang Xu & Michael T. Bennett, 2010. "China’s Sloping Land Conversion Program: Does Expansion Equal Success?," Land Economics, University of Wisconsin Press, vol. 86(2), pages 219-244.
    3. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 487-535.
    4. Greenwald, Bruce C., 1983. "A general analysis of bias in the estimated standard errors of least squares coefficients," Journal of Econometrics, Elsevier, vol. 22(3), pages 323-338, August.
    5. Zhang, Wei & Liu, Can, 2005. "The Impact of Environmental Policy on Household Income and Activity Choice: Evidence from Sandstorm Source Control Program in North China," 2005 Annual meeting, July 24-27, Providence, RI 19482, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    8. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    9. Chen Xie & Jincheng Zhao & Dan Liang & Jeff Bennett & Lei Zhang & Guangcui Dai & Xuehong Wang, 2006. "Livelihood impacts of the conversion of cropland to forest and grassland program," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(4), pages 555-570.
    10. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," World Bank Research Observer, World Bank Group, vol. 19(2), pages 141-169.
    11. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    12. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    13. Xu, Jintao & Yin, Runsheng & Li, Zhou & Liu, Can, 2006. "China's ecological rehabilitation: Unprecedented efforts, dramatic impacts, and requisite policies," Ecological Economics, Elsevier, vol. 57(4), pages 595-607, June.
    14. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Priority Forest Programs; rural household income; rural development; forest economics; ecological restoration.;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:piercr:2013-08. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuel Paradis). General contact details of provider: http://edirc.repec.org/data/cdvlvca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.