Forestland Reform in China: What Do the Farmers Want? A Choice Experiment in Farmers’ Property Rights Preferences
Various decentralization experiments are currently underway in the Chinese forestry sector. However, a key question often ignored by researchers and policymakers addresses what farmers really want from reform. This paper uses 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 what types of rights a contract provides. Reducing perceived risks of contract termination and introducing a priority right in the renewal of an old contract significantly increase farmers’ marginal willingness to pay for a forest contract. An extended waiting time for rights to harvest the forest reduces a farmer’s perceived value of a contract. Farmers are also concerned with the tenure length. In one region, the annual willingness to pay for a 50-year contract is even higher than the annual willingness to pay for 25-year contract.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rozelle, Scott & Li, Guo, 1998. "Village Leaders and Land-Rights Formation in China," American Economic Review, American Economic Association, vol. 88(2), pages 433-438, May.
- Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, December.
- Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
- Jacoby, Hanan G. & Li, Guo & Rozelle, Scott, 2002.
"Hazards Of Expropriation:Tenure Insecurity And Investment In Rural China,"
11960, University of California, Davis, Department of Agricultural and Resource Economics.
- Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
- Kung James, Kaising, 1995. "Equal Entitlement versus Tenure Security under a Regime of Collective Property Rights: Peasants' Preference for Institutions in Post-reform Chinese Agriculture," Journal of Comparative Economics, Elsevier, vol. 21(1), pages 82-111, August.
- Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-08-35-rev-efd. 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: (Webmaster)
If references are entirely missing, you can add them using this form.