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Post-reform Forestland Markets in China

Author

Listed:
  • Juha Siikamäki
  • Yonjie Ji
  • Jintao Xu

Abstract

Land markets developed rapidly in China after agricultural land tenure reforms, but not after forest reforms. We surveyed farmers in three provinces to examine the post-reform forestland markets and options to strengthen them. Using household choice experiments, we estimate land market demand and supply under alternative contractual arrangements. Our findings are consistent with the currently thin markets but also suggest that alternative institutional and contractual conditions could support broader participation in land markets. Strengthening property rights on forestland emerges as an especially effective possible policy instrument. We illustrate its predicted effects on equilibrium rental rates and market participation.

Suggested Citation

  • Juha Siikamäki & Yonjie Ji & Jintao Xu, 2015. "Post-reform Forestland Markets in China," Land Economics, University of Wisconsin Press, vol. 91(2), pages 211-234.
    • Handle: RePEc:uwp:landec:v:91:y:2015:i:2:p:211-234
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    Citations

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    Cited by:

    1. Xu, Chang & Li, Lingchao & Cheng, Baodong, 2021. "The impact of institutions on forestland transfer rents: The case of Zhejiang province in China," Forest Policy and Economics, Elsevier, vol. 123(C).
    2. Hong, Yan-Zhen & Chang, Hung-Hao & Dai, Yong-Wu, 2018. "Is deregulation of forest land use rights transactions associated with economic well-being and labor allocation of farm households? Empirical evidence in China," Land Use Policy, Elsevier, vol. 75(C), pages 694-701.
    3. Zhu, Zhen & Xu, Zhigang & Shen, Yueqin & Huang, Chenming & Zhang, Yaoqi, 2019. "How off-farm work drives the intensity of rural households' investment in forest management: The case from Zhejiang, China," Forest Policy and Economics, Elsevier, vol. 98(C), pages 30-43.
    4. Xie, Fangting & Zhu, Shubin & Cao, Mengtian & Kang, Xiaolan & Du, Juan, 2019. "Does rural labor outward migration reduce household forest investment? The experience of Jiangxi, China," Forest Policy and Economics, Elsevier, vol. 101(C), pages 62-69.
    5. Han Zhang & Jari Kuuluvainen & Hongqiang Yang & Yi Xie & Can Liu, 2017. "The Effect of Off-Farm Employment on Forestland Transfers in China: A Simultaneous-Equation Tobit Model Estimation," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    6. Lin, Ying & Qu, Mei & Liu, Can & Yao, Shunbo, 2020. "Land tenure, logging rights, and tree planting: Empirical evidence from smallholders in China," China Economic Review, Elsevier, vol. 60(C).
    7. Xu, Jintao & Hyde, William F., 2019. "China's second round of forest reforms: Observations for China and implications globally," Forest Policy and Economics, Elsevier, vol. 98(C), pages 19-29.
    8. Hu, Yuan & Kuhn, Lena & Zeng, Weizhong & Glauben, Thomas, 2023. "Who benefits from payments for ecosystem services? Policy lessons from a forest carbon sink program in China," Ecological Economics, Elsevier, vol. 214(C).
    9. Yang Yang & Hua Li & Zhen Liu & Long Cheng & Assem Abu Hatab & Jing Lan, 2020. "Effect of Forestland Property Rights and Village Off-Farm Environment on Off-Farm Employment in Southern China," Sustainability, MDPI, vol. 12(7), pages 1-17, March.
    10. Krul, Kees & Ho, Peter & Yang, Xiuyun, 2020. "Incentivizing household forest management in China's forest reform: Limitations to rights-based approaches in Southwest China," Forest Policy and Economics, Elsevier, vol. 111(C).
    11. Yang Ren & Jari Kuuluvainen & Anne Toppinen & Shunbo Yao & Sami Berghäll & Heimo Karppinen & Caixia Xue & Liu Yang, 2018. "The Effect of China’s New Circular Collective Forest Tenure Reform on Household Non-Timber Forest Product Production in Natural Forest Protection Project Regions," Sustainability, MDPI, vol. 10(4), pages 1-17, April.
    12. Han Zhang & Jari Kuuluvainen & Youliang Ning & Wenmei Liao & Can Liu, 2017. "Institutional Regime, Off-Farm Employment, and the Interaction Effect: What are the Determinants of Households’ Forestland Transfer in China?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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