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2008-12-22 | EfD Discussion Paper

Forestland Reform in China: What Do the Farmers Want? A Choice Experiment on Farmers' Property Rights Preferences

Qin, Ping, Fredrik Carlsson and Jintao Xu. 2008. “Forestland Reform in China: What Do the Farmers Want? A Choice Experiment on Farmers' Property Rights Preferences.” EfD Discussion Paper 08.
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With decentralization experiments occurring in the Chinese forestry sector, the authors used a survey-based choice experiment to investigate farmers’ preferences for various property-rights attributes of a forestland contract.

Farmers are highly concerned with what rights a contract provides. Reducing the risk of contract termination and introducing a priority right to renew a contract significantly increase farmers’ marginal willingness to pay (WTP) for a forest contract. Farmers are also concerned with tenure length and waiting time to harvest. In one region, the annual WTP for a 50-year contract is higher than a 25-year contract.