Transaction cost theory of the firm and community forestry enterprises

Vega, Dora Carías; Keenan, Rodney J.

doi:10.1016/j.forpol.2014.01.006

Cited by 28 publications

(16 citation statements)

References 20 publications

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“…One innovative approach to overcome these problems, which has been adopted by the Ethiopian government, is to organize JFM into community forest enterprises (CFE) in the form of forest users' cooperatives (FUC) for forest products marketing. 4 This provides the community with avenues for greater participation in value chains of forest products markets through vertical integration (VI) (Antinori, 2005;Gelo and Koch, 2014;Vega and Keenan, 2014). Vertical integration is expected to raise NTFP prices and hence spurs the required incentives by shortening the marketing chain and increasing bargaining power of farmers along NTFP market value chain.…”

Section: The Program and Evaluation Problemmentioning

confidence: 99%

“…One innovative design, described in detail in Section 2 below, confers usufruct rights for nontimber forest products and augments this with improved marketing of these products (Vega and Keenan, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, while a few studies have evaluated the efficacy of a combination of property rights reform with provision of market-based incentives (Ameha et al, 2014a;Vega and Keenan, 2014;Gelo and Koch, 2014), they did not separate the effect of each component.…”

Section: Introductionmentioning

confidence: 99%

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Decentralization, market integration and efficiency-equity trade-offs: Evidence from Joint Forest Management in Ethiopian villages

Gelo

Muchapondwa

Koch

2016

JFE

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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). Exploiting exogenous variation in customary rights across eligible groups of communities that participate in JFM programs, as well as using heteroskedasticitybased instrumentations, we identified the income and distributive effects of the program. Our analysis shows that the program has raised the income of the households who chose to participate by approximately 400 Ethiopian Birr or 26% of per capita expenditure; that result was robust to various specifications. We also found that this effect is largely driven by marketing incentives to use non-timber forest products. However, we found that the program's benefit is * We thank associate editor, Professor Arild Angelsen, and the reviewer for their comments. We are grateful to Volkswagen Foundation and University of Johannesburg for funding postdoc fellowships of the first author and Economic Research Southern Africa for its support of this research. We also gratefully acknowledge generous financial support of EfD (EDRI/ EEPFE) SIDA for collection of the data used for analysis of this paper. 1 biased toward the upper end of the income distribution, a result that points to the inequalityreinforcing effects of the program.

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Section: The Program and Evaluation Problemmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Decentralization, market integration and efficiency-equity trade-offs: Evidence from Joint Forest Management in Ethiopian villages

Gelo

Muchapondwa

Koch

2016

JFE

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“…As such, they are naturally vulnerable to the competition of forest companies that operate at a greater capacity and with lower costs (Humphries et al, 2012). This is why CFEs frequently struggle financially and rely on government agencies and nonprofit organizations for financial support (Donovan et al 2006;Vega and Keenan 2014).…”

Section: Background: Competitive Positioning In Community Forest Ente...mentioning

confidence: 99%

How does strategic choice affect the performance of community forest enterprises? A study in the Cascadia region

et al. 2022

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Proponents of decentralized forest governance make a compelling case that community forest enterprises (CFEs) can aid in sustainable and equitable utilization of forest resources. The effectiveness of CFEs is thus dependent on their ability to balance social, environmental, and financial performance. In this paper, we examine the relationship between a commonly recommended differentiation strategy and CFE effectiveness. Using data obtained through a survey administered on 51 CFEs located in the Cascadia region (British Columbia province of Canada; and Oregon and Washington states of the United States), we find that CFEs pursuing a differentiation strategy are able to balance social, environmental, and financial objectives. Further, recognizing that all CFEs cannot pursue a differentiation strategy, and some may not even have a defined strategic orientation, the paper compares social, environmental, and financial performance of CFEs pursuing a differentiation strategy, a hybrid strategy (a combination of differentiation and cost leadership strategy), and no defined strategy. This analysis reveals that CFEs pursuing a hybrid strategy deliver better financial performance than those with no defined strategy, but are similar to those pursuing a differentiation strategy.

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“…Local collaboration is obligatory for smallholders if they use FMP to undertake SFM [92]. Some indigenous groups established community enterprises [93]. Only communities that received external assistance with formulating FMPs; and accessing capital and technologies made significant progress in adopting SFM practices [33,39,94].…”

Section: Barriers To Adoption Of Sustainable Forest Managementmentioning

confidence: 99%

Smallholder Forestry in the Western Amazon: Outcomes from Forest Reforms and Emerging Policy Perspectives

Pacheco

Mejía²,

Cano³

et al. 2016

Forests

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Abstract:The forest reforms unfolding during the last two decades in the western Amazon have embraced policy regimes founded on the principles of sustainable forest management. The policy frameworks adopted for smallholder forestry aimed to clarify forest rights including those of the indigenous people and smallholders, support the adoption of sustainable forest management and put a system in place to assure a legal timber supply. The emerging forest policy regimes have significantly shaped who has access to the forest, how the forest resources are used and the benefits that are utilized. We argue that forest reforms have not addressed some critical constraints facing smallholders in managing their forests either individually or collectively. Informal timber extraction persists with contradictory effects on smallholders and forests. Local participants continue to make a significant contribution in meeting a growing demand for timber through vigorous market networks that combine legal and illegal sources of timber supply. Some recent changes to forest policy frameworks emphasize approaches towards additional integrated forest management, simplification of regulations and incentives for improved forest management. We critically reflect on the scope, implementation and expected outcomes of these policy frameworks.

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Transaction cost theory of the firm and community forestry enterprises

Cited by 28 publications

References 20 publications

Decentralization, market integration and efficiency-equity trade-offs: Evidence from Joint Forest Management in Ethiopian villages

Decentralization, market integration and efficiency-equity trade-offs: Evidence from Joint Forest Management in Ethiopian villages

How does strategic choice affect the performance of community forest enterprises? A study in the Cascadia region

Smallholder Forestry in the Western Amazon: Outcomes from Forest Reforms and Emerging Policy Perspectives

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