The paper provides an overview of the papers included in this special issue, and presents thoughts about New Frontiers of Forest Economics. The paper argues that science does not mean analysis alone; it should be complemented by synthesis and forest economics is a promising field to rediscover synthesis as a methodology of science.
Village democratization in rural China is found to have profound impacts on many socio-economic aspects, but little is understood as to how welfare impacts may occur through farmers' principal production activities. This study helps to fill this gap by investigating how village democracy affects rural household welfare through these channels, using a unique household survey. The authors first establish a theoretical framework that links democracy to household welfare through changes in production efficiency.
This paper empirically analyzes adoption and fuel savings efficiency of improved biomass cookstove technology using survey data from a cross-section of 200 farm households from the highlands of Tigrai, northern Ethiopia. Results indicate that these farm households are willing to adopt improved biomass cookstove innovations if this leads to economic savings. Moreover, results suggest significant positive environmental externalities. On a per household basis, we found that adopters collect about 70 kg less wood and about 20 kg less dung each month.
This paper analyzes the factors affecting adoption of sustainable land management and climate smart agricultural (SLM-CSA) practices (in particular tree planting, soil conservation and inter cropping)and the effects of adoption on crop net revenue. We use two rounds of household and parcel level survey data collected from the East Gojjam and South Wollo Zones in the Amhara region of Ethiopia, in combination with spatially explicit climate data (rainfall and temperature).
This paper analyzes the factors affecting adoption of sustainable land management and climate smart agricultural (SLM-CSA) practices (in particular tree planting, soil conservation and intercropping) and the effects of adoption on crop net revenue. We use two rounds of household and parcel level survey data collected from the East Gojjam and South Wollo Zones in the Amhara region of Ethiopia, in combination with spatially explicit climate data (rainfall and temperature).
This paper analyzes empirically the determinants of fuel choices and intensity of fuelwood use for residential heating and cooking in central-southern Chile.
This article estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in
order to determine the scope for raising fees charged to international tourists in order to fund
revenue-sharing schemes for local communities. International and Southern African Development
Community tourists account for approximately 25% and 2% of the total number of visitors to
South African national parks, with domestic visitors making up the remaining portion. Although
The adoption of good practices for the economic valuation of environmental services (ES) has strong implications in the evaluation and design of a Payment for Environmental Services program.
The authors used a Bayesian estimation approach to estimate a quantile binary regression and the WTP distribution in the context of a contingent valuation PES application.
Strong property rights have long been touted as key to increased performance of the rural economy in developing countries. Indeed, in an overwhelmingly agrarian economy like Ethiopia, with state ownership of land, increased land tenure security of individual farmers is expected to play a significant role in factor allocation within and beyond the agricultural sector. This paper analyses the impact of a land certification program on farmers’ off-farm participation, based on household-level panel data collected in the Amhara Region of Ethiopia.
Based on the survey on 1 454 households in 24 forestry bureaus in 3 provinces, this paper used both MEL and OLS methods to evaluate the impact of state-owned forestry reforms on the inequality of household income. The study found that inequality of households in state-owned forestry regions has further aggravated and the reforms take the main responsibility for this phenomenon.
Since 2006, China began a property reform on rural forest land, which is called "the second land reform" after the implementation of China's rural household contract responsibility system. Using a unique household survey data, we analyze the impact of grassroots democratic decision-making on investment incentives of the property right reform on forest land.
[Objective] Based on the micro survey data of key state-owned forestry area, this paper analyzed the impacts of state-owned forestry region reform on the changes in employment, which would provide a useful reference for the policy of key state-owned forestry region.
[Method] We described the changes of industries, departments and aspects of employment in state-owned forestry region by statistical methods. Furthermore, we applied an econometric model to estimate the effect of state-owned forestry reforms on the employments.
Based on the survey data of 1 454 households in 24 forestry bureaus of 3 provinces, this research used both MEL and OLS methods to evaluate the impact of the reform on household’s per-capita income in the key state-owned forest areas. The study found that the proportion of both non-forestry income and income from
Based on a household survey on farmers’Willingness To Accept (WTA) the goverment’s ecological compensation in Sichuan Province, this paper attempts to study the compensation mechanism in the context of goverment’s purchase of ecological forest by establishing the ecological forest supply curve. We find that, given the budget constraint of 500000 CNY, the appropriate purchase price is 5400 CNY/hm2, and the survey villages can supply 80% of their forest lands.
Climate change is the greatest challenge facing humanity, and we are only starting to address it. Climate change scenarios indicate that poor people in developing countries will be particularly negatively affected, e.g. by increased temperature reducing their harvests or flooding due to sea-level rise and extreme weather events. There are also expectations that greenhouse gas (GHG) emissions can be costefficiently reduced in developing countries through for example reduced deforestation or improved stoves.
This report provides findings based on the Costa Rican experiences that are beneficial for countries around the world implementing Payment for Ecosystem Services (PES) schemes. In this report, it is noted that from 2000 to 2010, over 5 million hectares of forest were lost per year globally, with the agricultural sector contributing to an estimated 80% of this loss. As forests are lost, the knock-on economic, environmental, and social benefits of ecosystem services provided by forests are lost as well (e.g.
Payments for ecosystem services (PES) typically reward landowners for managing their land to provide ecosystem services that would not otherwise be provided. REDD+—Reduced Emissions from Deforestation and Forest Degradation—is a form of PES aimed at decreasing carbon emissions from forest conversion and extraction in lower-income countries. A key challenge for REDD+ occurs when it is implemented at a group, rather than an individual landowner, level.
This study was carried to find out the impact of PES (Payment for Environmental Services) on the welfare of the communities in the Uluguru Mountains. The aim of the study is to assess the main objectives of the PES project which is to conserve the environment (forest) and reduce poverty. The assessment of the project is done by looking on the difference between the treatment group (those who participate in PES) and control group (households who do not participate).
Single objective approach is most widely used whereas consideration of multiple objectives is the rule rather than an exception in many real life decision-making circumstances. This paper, therefore, investigates whether or not single and multiple criteria/objective approaches necessarily lead to differing conclusions. The central questions are could the single objective approach be a reasonable approximation for subsistence farm settings or does the multiple objectives approach has anything to add?
Risk aversion has generally been found to decrease in income. This may lead one to expect that people in poor countries will be more risk averse than inhabitants of rich countries. Recent comparative findings with students suggest the opposite, potentially giving rise to a risk-income paradox. Findings with students, however, may result from selection effects. We test whether a paradox indeed exists by measuring the risk preferences of over 500 household heads across several regions in the highlands of Ethiopia.
Tenure security in land is considered crucial in order to stimulate investment and create economic growth, for three reasons; higher expected returns from investment, better functioning land markets allowing land transfers to more efficient producers, and better access to credit (Demsetz, 1967; Besley, 1995; Brasselle et al., 2002). Land allocation has played a special role in China as a key resource that has been shared based on strong equity principles in rural areas where land has been the main resource pillar of the economy (Carter and Yao, 1998; Jacoby et al., 2002).
The Chinese government has allowed collective village forest land to pass into individualized ownership. The purpose was to alleviate rural poverty and stimulate investment in forests. Using data collected from 288 villages, in eight provinces, over three years, this paper measures the effect of the individualization on one aspect of forest investment, forestation. Because villages voted on the reform, we identify the causal effect of the reform by an instrumental variable estimator based on the countywide decision to offer the reform package.
Access to reliable, clean water is integral to sustainable development and the transition to a green economy. But the world is consuming freshwater at rates that simply cannot be sustained, and freshwater ecosystems are under threat.
Abstract: Human-induced causes of forest change occur at multiple scales. Yet, most governance mechanisms are designed at a single level – whether international, national, regional or local – and do not provide effective solutions for the overarching challenge of forest governance.
The United Nations Programme to Reduce Emissions from Deforestation and Degradation (REDD+) is a plan to mitigate climate change by making payments to developing countries that conserve forests. However, it is not yet clear whether it makes sense to bring in the approximately 25% of developing country forests that are managed by communities. We attempt to shed light on this question by examining whether forest collective action – cooperation to improve forests – is already sequestering carbon.
Tanzania has high rates of deforestation and forest degradation. Reducing deforestation and forest degradation is an important strategy for reducing greenhouse gas emissions. However, asking households to reduce deforestation means asking them to sacrifice direct benefits from forests, such as energy resources. The REDD+ programme provides a way to compensate households. This study estimates households’ willingness to accept forest-use restrictions governing participation in the REDD+ programme and its determinants.
Extant literature on Joint Forest Management (JFM) impact evaluation has concluded that it generally does not provide sufficient incentives to justify the costs that forest use restrictions impose on local people. However, there is a dearth of evidence concerning whether alternative JFM intervention with improved market linkages for non-timber forest products has similar implications.
Payments for ecosystem services (PES) typically reward landowners for managing their land to provide ecosystem services that would not otherwise be provided. REDD— Reduced Emissions from Deforestation and Forest Degradation—is a form of PES aimed at decreasing carbon emissions from forest conversion and extraction in lower-income countries. A key challenge for REDD occurs when it is implemented at the community rather than the individual landowner level.
Extant literature on Joint Forest Management (JFM) impact evaluation has concluded that it generally does not provide sufficient incentives to justify the costs that forest use restrictions impose on local people. However, there is a dearth of evidence concerning whether alternative JFM intervention with improved market linkages for non-timber forest products has similar implications. In this study, we evaluated the income and distributive effects of a JFM program in Ethiopia in which additional support was provided for improved market linkages for non-timber forest products (NTFPs).
REDD+ (Reduced Emissions from Deforestation and Forest Degradation) is a form of payment for ecosystem services (a voluntary transaction in which a buyer makes a payment to a seller conditional on the ecosystem providing some service, such as carbon storage) aimed at decreasing carbon emissions from conversion of forest to farm land and unsustainable harvesting of forest resources in lower-income countries. Community-based forest management (CBFM) can create the appropriate incentives and behavioural change required by REDD+ when the recipients of the REDD+ funds are also the key causes of that forest change.
REDD + is one of the tools under development to mitigate climate change, but it is not yet clear how to appropriately bring in the approximately 25 per cent of developing country forests that are managed by communities. Drawing on the economics of collective action literature, the authors attempt to shed light on whether forest collective action itself sequesters carbon.
We estimate the effects on deforestation that have resulted from policy interactions between parks and payments and between park buffers and payments in Costa Rica between 2000 and 2005. We show that the characteristics of the areas where protected and unprotected lands are located differ significantly. Additionally, we find that land characteristics of each of the policies and of the places where they interact also differ significantly. To adequately estimate the effects of the policies and their interactions, we use matching methods.
This study looks into the effect of resource collection (fuelwood collection and fetching water) on child education using data collected from rural Ethiopia. We find that, in general, natural resource scarcity contributes to child illiteracy by increasing the work burden on children in rural Ethiopia. In particular, children’s participation in fetching water is found to be one of the most important factors reducing children’s ability to read and write. There is greater child literacy when household heads have more education and when the family lives near a school.
Since its creation more than two decades ago as a voluntary market-based approach to improving forest management, forest certification has proliferated rapidly in developing countries. Yet we know little about whether and under what conditions it affects deforestation.
This article uses househld panel data spanning the period 2000–2007 to test hypotheses from the literature that secure land tenure, market access and collective action promote accumulation of private capital assets in rural highland Ethiopia. The three natural capital assets analysed in the article, livestock, eucalyptus trees and non-eucalyptus trees on households’ farm plots, make up virtually 100 per cent of privately held disposable assets. Incomes and capital stocks are extremely low and constant and tree assets are at least as important as livestock. We find that collective action and secure land tenure have strong positive effects on accumulation of livestock and other trees, but not eucalyptus. We also find evidence that market access promotes eucalyptus holdings and that other types of wealth tend to be positively associated with private natural capital stocks.
Extant literature on Joint Forest Management (JFM) impact evaluation has concluded that it generally does not provide sufficient incentives to justify the costs that forest use restrictions impose on local people. However, there is a dearth of evidence concerning whether alternative JFM intervention with improved market linkages for non-timber forest products has similar implications. In this study, we evaluated the income and distributive effects of a JFM program in Ethiopia in which additional support for improved market linkages of non-timber forest products was provided.
This paper looks at the impact of land restitution involving the Khomani San “bushmen” in the
Kgalagadi area of South Africa. It seeks to investigate the effect of land restitution on poverty
reduction among the beneficiaries. We run two-stage least squares models of access to nature, per
capita income and poverty status on the use of restituted land, among other variables. Our results
suggest that the Khomani San beneficiaries have gotten more access to natural resources but that
Biofuels production has received increasing focus by developed and developing countries due to rising fossil fuel prices and the need to mitigate greenhouse gas emissions. The net economic and environmental impacts of biofuel programs have become an important question of public policy. In particular, the anticipation that biofuels may have a lower environmental footprint than fossil fuels is one of the important drivers. This study investigates the economy-wide impact of biofuel investment in Ethiopia with the focus on greenhouse gas (GHG) emissions and the forest sector.
The main objective of the study was to assess the economic value of Zambia’s forest ecosystem services. The study estimates that, when ecosystem services provided by forests are accounted for, forests make a direct contribution to the national economy equivalent to about 4.7% of gross domestic product (GDP), which rises to 6.3% with the application of multiplier effects.
Link to full report in pdf
This study examines the welfare effects of community plantations in Ethiopia via contingent valuation. Both single-bounded and double-bounded survey methods were considered, and, with respect to double-bounded methods, the potential for anomalous response behaviour was also taken into account. The results generally confirm that there are statistically significant welfare benefits to be derived from community forestry; however, the range of the estimated benefits is large.
Although developing countries have established scores of new protected areas over the past three decades, they often amount to little more than “paper parks” that are chronically short of the financial, human, and technical resources needed for effective management. It is not clear whether and how severely under-resourced parks affect deforestation. In principle, they could either stem it by, for example, creating an expectation of future enforcement, or they could spur it by, for example, creating open access regimes.
Biodiversity plays a key role in sustaining the functioning of ecosystems and thus in the provision of ecosystem services. A great deal of biodiversity is to be found in private forests, thus the way in which these forests are managed has major implications for biodiversity.
This paper uses the water-reallocation scheme created within the National Water Act (1998) to analyze the impacts of water policy on farm livelihoods in South Africa. Based on one of the most water stressed catchments in the country, the Olifants river basin, we provide an integrated modeling approach combining water and agricultural modules to investigate the impacts of compulsory licensing and water market on crop production and investment made to improve water use efficiency.
Although protected areas, or “parks”, are among the leading policy tools used to stem tropical deforestation, rigorous evaluations of their effectiveness—that is, evaluations that control for their tendency to be sited in remote areas with relatively little deforestation—have only recently begun to appear. Important open questions concern the link between the stringency of protection and park effectiveness. How do mixed-use parks that allow sustainable extractive activities perform relative to strictly protected parks? And what types of mixed-use management perform best?
This policy brief discusses the whether the preference of Swedish forestry stakeholders is biodiversity or production goals. Healthy and productive forests benefit us all, but what are the priorities of those directly managing Swedish forests? This brief presents a comparison of the preferences of key stakeholders regarding Swedish forest management and biodiversity protection.
This study presents findings from a systematic comparative research effort to investigate the additionality claims of CDM afforestation projects in Tanzania, Uganda and Moldova.
Using what we refer to as an ex-post comparative baseline approach that accounts for how project financing and background economic conditions evolve over a CDM project’s implementation and crediting periods, we demonstrate that the projects in Uganda and Moldova are very likely to be fully additional while only approximately one-quarter of carbon credits resulting from the Tanzania project are genuine.
Using three rounds of survey data that cover a decade, we analyze household preferences for energy types and energy choice in urban Ethiopia. We find that, during 2000-2009, households in major cities of Ethiopia used multiple fuels as their income increased. Increased fuelwood prices encourage consumption of cleaner fuels, such as electricity, while increased kerosene prices encourage solid fuel consumption. Better educated households are more likely to consume cleaner fuels. While increased incomes are associated with consumption of cleaner fuels, households did not entirely shift to consumption of modern fuels as their income increased. This suggests that an energy transition did not take place following economic growth during the study period.
This paper examines dependence on environmental resources and impacts on household welfare among the indigenous San and Mier rural communities neighbouring Kgalagadi Transfrontier Park in South Africa. Data on the various household income types, including environmental income, were collected through a structured survey of 200 households. Environmental income constituted 20% of the total income. The poorest income quintile showed the highest relative dependence on environmental income (31%), though absolute environmental income increased with total income.
Forest tenure reforms are occurring in many developing countries around the world. These reforms typically include devolution of forest lands to local people and communities, which has attracted a great deal of attention and interest. While the nature and level of devolution vary by country, all have potentially important implications for resource allocation, local ecosystem services, livelihoods and climate change.