Property rights, tenure security, and forest investment incentives : evidence from China's collective forest tenure reform
Yi, Yuanyuan & Gunnar Kohlin
This paper assesses how tenure reform in Chinaas collective forest sector affects Chinese farmer householdss perception of tenure security and propensity to invest in their forestland. A large database consisting of information from 3,180 household in eight provinces from south to north is used to explore factors correlated with stronger perceived tenure security and determinants of forest related investment. The study first adds to the limited research testing whether there is endogenous causality between investment and tenure security in forest land and finds that investment was not undertaken to enhance tenure security. Second, the data allows for differentiation between perceived tenure security and contracted use and transferability rights. Overall, stronger contracted rights were found to affect investment. Chinaas forest tenure reformmwhere individual households can manage forest land, empowered by legal certification and stronger contract rightss has thus enhanced tenure security and encouraged forest investment.
Event: Annual World Bank Conference on Land and Poverty 2013
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