Econometric Analysis of the Causes of Forest Land Use Changes in Hainan, China

Yaoqi Zhang, Jussi Uusivuori and Jari Kuuluvainen
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Yaoqi Zhang: Auburn University
Jussi Uusivuori: University of Wisconsin-Madison
Jari Kuuluvainen: University of Helsinki

No rr2016050, EEPSEA Research Report from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: This paper addresses the effects of economic, demographic andinstitutional factors on land allocation between forestry and other uses.A panel data set from Hainan Island in China and a generalized least squaresestimation method, allowing individual effects for counties, are applied.The results indicate that higher timber prices have led to accelerationin rainforest exploitation, but encouraged forest investment in plantationforests. Population growth is the driving force behind the loss of naturalforests, but is positively related to plantation forests. De-collectivizationseems to have promoted plantation forests, but have not saved therainforest. A higher share of forestry land owned by state-owned enterprisesalso fosters afforestation on wasteland, but seems to lead to faster exploitationof natural forest, at least initially. The uncertainty that existed inthe early period of economic reform quickened the pace of resource extractionand deterred investment.

Keywords: Forestland tenure; economic transition; deforestation; reforestation; panel data (search for similar items in EconPapers)
Date: 2016-04, Revised 2016-04
New Economics Papers: this item is included in nep-agr, nep-cna, nep-env and nep-pke
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