Economic Changes and Afforestation Incentives in Rural China

36 Pages Posted: 18 Jan 2006

See all articles by Sylvie Démurger

Sylvie Démurger

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Weiyong Yang

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI)

Date Written: May 4, 2005

Abstract

This paper uses provincial macro-data from the mid-1980s onwards to investigate the determinants of land-use choice in rural China, by paying a particular attention to the decision to plant trees as competing with agriculture. The evidence supports the importance of economic motivations in the afforestation decision. A profit-seeking behavior is found to be at stake in the decision to plant trees, which is made according to both the relative profitability of forestry against agriculture, and their relative risks. Afforestation is also found to strongly depend on the pressure upon land as well as on household wealth.

Keywords: Forest economics, Land use, Economic development, China

JEL Classification: Q15, Q23, O13, N55

Suggested Citation

Démurger, Sylvie and Yang, Weiyong, Economic Changes and Afforestation Incentives in Rural China (May 4, 2005). Available at SSRN: https://ssrn.com/abstract=876869 or http://dx.doi.org/10.2139/ssrn.876869

Sylvie Démurger (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France
(33 4) 72 86 61 05 (Phone)
(33 4) 72 86 60 90 (Fax)

HOME PAGE: http://www.gate.cnrs.fr/spip.php?article22

Weiyong Yang

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI) ( email )

65 Boulevard Francois Mitterrand
63000 Clermont-Ferrand Cedex 1
France

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