How forestland size affects household profits from timber harvests: A case-study in China’s Southern collective forest area

Zhu, Z. A.; Xu, Zhigang; Shen, Yueqin; Huang, Chenming

doi:10.1016/j.landusepol.2018.04.055

Cited by 18 publications

(15 citation statements)

References 30 publications

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“…We assume that the labor force of a representative farm household before the implementation of the program is L, the area of commercial forest is K and the labor force used by the farm household for forestry production is l(K). It is generally believed that the of fragmented forestland's investment income is small, and the larger the forestland area, the higher the return of farmers' forestry production, that is, forestry production has a scale effect (Uchida et al, 2009;Liu et al, 2014;Zhu et al, 2018). The labor used for off-farm sectors is L-l(K), l(K) ' >0, that is, when the labor force is constant, increasing commercial forest area will increase the marginal output of labor.…”

Section: Theoretical Analysismentioning

confidence: 99%

Classification-based forest management program and farmers' income: evidence from collective forest area in southern China

Cheng

Zhang

2022

CAER

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PurposeThis article's purpose is to examine the effect of a Classification-Based Forest Management (CFM) program on farmers' income and determine whether its effect varies with the degree of farmers' concurrent occupations.Design/methodology/approachThe authors use representative panel survey data from Longquan to explore the welfare effects of CFM on farmers. The analysis uses differences-in-differences with propensity score matching (PSM-DID) estimation techniques to deal with endogeneity problems when farmers make the decision to participate in CFM.FindingsThe results show that CFM has a positive effect on part-time forestry households (where forestry income accounts for between 5 and 50% of total income). In contrast, it has a negative impact on full-time forestry households (forestry income accounts for more than 50%), and no clear effect on nonforestry households whose forestry income is less than 5%. This research also shows that the positive effect of CFM on farmers' total income is mainly due to increase of off-farm income driven by CFM, while the negative effects consist of CFM's reduction of forestry income.Originality/valueThe extent of CFM's economic benefits to farmers is uncertain and largely unexplored. This paper analyzes the impact of CFM on income structure to explore the mechanisms explaining its effects on farmers' income. There are still challenges in ensuring the reliability and accuracy of CFM assessment. This paper collected natural experimental data and used the estimation technology of PSM-DID to solve the possible endogeneity problems.

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Section: Theoretical Analysismentioning

confidence: 99%

Classification-based forest management program and farmers' income: evidence from collective forest area in southern China

Cheng

Zhang

2022

CAER

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“…Income involves forest carbon sink or productive income and government forestland subsidies. Expenditure includes the total transaction cost, cost of forestland consolidation, operating cost after transferring, cost of one-time transfer, continuous dividend, and leasing during the forestland use period (Zhu et al 2018). Assuming that the period expenses and taxes generated in the operation process of the business enterprise are excluded, the utility function of the business enterprise is…”

Section: Utility Function Of Forest Rights Transfermentioning

confidence: 99%

“…The government should improve the operational efficiency of the forest rights transfer market (Zhang et al 2017a;Zhu et al 2018), reduce transaction costs in the transfer process, and improve the overall utility of the cooperative alliance. It is imperative to promote the construction of a proper platform for forest rights transfer (Xu et al 2013), formulate the internal rules of forest rights transactions, regularly publish the trading information of forest rights transfer on the platform, accept the supervision of the public on the transfer price to reduce information asymmetry, and protect the interests of forest farmers.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

Income Distribution of Forest Rights Transfer Cooperation Based on Game Theory: A Case of China

Zhang¹,

Qin²

2021

Preprint

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Forest resources primarily characterize the terrestrial ecosystem and forest ecosystem is an important part of the global carbon cycle. Multiple participants to complete the large-scale production of forestland can effectively achieve carbon neutrality and realize the economic benefits of the forest industry, requiring far-reaching changes in the way forestland is managed. It is imminent to promote forest rights transfer between forest farmers and social capital. Based on the evolutionary game theory, we find that income distribution is a significant factor affecting the stable cooperation between business enterprises and forest farmers. To distribute income effectively within this cooperative framework, whereby farmers transfer their forest rights in different ways, we use a trapezoidal fuzzy number weighting method. This method improves the traditional Shapley value based on the investment and risk level of each participant in the cooperative alliance. Using a case study of forest rights transfer in Xin’tai city of China, we show that the improved Shapley value method can optimize the income distribution of forest rights transfer and ensure that all parties obtain long-term and stable benefits.

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“…After the Collective Forest Tenure Reform, one consequence had been the fragmentation of forestlands (Zhen et al 2018). Small business owners began to aggregate holdings in order to improve the economies of scale in forest management and reduce the fragmentation of forestland (Zhen et al 2018). They gathered forestland by transferring the forestland from individual farmer households whose management rights of forestland were clarified after the reform (Xu and Jiang 2009).…”

Section: Small Businessmentioning

confidence: 99%

“…After the Collective Forest Tenure Reform, forest farmers were given the rights for forestland management and forest tree ownership, and afforestation by individual farmer households increased significantly (Xu and Jiang 2009). However, one initial consequence of this reform was the fragmentation of forestlands (Zhen et al 2018), with each member household being assigned approximately 1.8 ha of forestland in South China (Hou et al 2013). Thus the owners must strive to cooperate in management and in harvesting to achieve enough volume to make operations economically practical.…”

Section: Forest Farmersmentioning

confidence: 99%

An analysis of potential investment returns of planted forests in South China

Zhang

Yin

et al. 2019

New Forests

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Financial returns of forest plantations are an important concern around the world. In this research, we focused on South China's timber investments, collected data from the Pingxiang, Guangxi Province, China, which is the demonstration zone of Fast-growing and High-yielding Timber Plantation Base Construction Program and National Timber Strategic Storage and Production Bases Construction Program, and used capital budgeting analysis method and sensitivity analysis to compare different scenarios of planted forest management. The results showed that excluding land costs, (1) the financial returns of Eucalyptus forest managed by small business were excellent, having an IRR of 28% per year and a LEV of $7555 per ha, but it had a high risk with fluctuations of cost, timber price and timber yield; (2) the results for the Experimental Center of Tropical Forests indicate that the Eucalyptus forest and Castanopsis hystrix forest returns were greater than those for Cunninghamia lanceolata forest and Pinus massoniana forest, with having IRRs of 24%, 21%, 13% and 10% per year respectively. The mixed planted forest of Castanopsis hystrix × Eucalyptus and Castanopsis hystrix × Pinus massoniana had the features of high profits and low risks; (3) the forest farmers had lower levels of returns for Eucalyptus forest management in South China, but were still in the middle rank of global comparisons. This study gave a view of China's timber investment and provided more options of improving the economic returns of planted forest management to both small businesses and forest farmers in South China.

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How forestland size affects household profits from timber harvests: A case-study in China’s Southern collective forest area

Cited by 18 publications

References 30 publications

Classification-based forest management program and farmers' income: evidence from collective forest area in southern China

Classification-based forest management program and farmers' income: evidence from collective forest area in southern China

Income Distribution of Forest Rights Transfer Cooperation Based on Game Theory: A Case of China

An analysis of potential investment returns of planted forests in South China

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