Economic Changes and Afforestation Incentives in Rural China
36 Pages Posted: 18 Jan 2006
Date Written: May 4, 2005
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
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