Incomplete property rights, exposure to markets and the provision of environmental services in China

Michael T. Bennett, Aashish Mehta and Jintao Xu

China Economic Review, 2011, vol. 22, issue 4, 485-498

Abstract: This paper uses data from a 2003 rural survey to examine the determinants of household provision of environmental services under China's Sloping Land Conversion Program (SLCP), the largest payments for environmental services program in the developing world. The paper examines the determinants of plot-level survival rates of program-planted trees and grasses. It finds that household rights over retired land as well as autonomy in program decision-making (which we argue on the basis of supportive evidence are plausibly exogenous to post-retirement outcomes) have important and potentially countervailing impacts on the provision of environmental services targeted by the program. Households permitted to select what to plant obtain better program outcomes, but do not make the choices that the government would like them to, while those permitted to decide what land to retire perform worse. The analysis also finds that households more vested and experienced in agriculture and with less exposure to off-farm labor markets fare better in managing their planted trees. Significant learning-by-doing effects are also evident, suggesting that greater technical support to farmers could improve outcomes and lower program costs.

Keywords: China; Afforestation; Land conversion (search for similar items in EconPapers)
JEL-codes: Q01 Q12 Q15 Q23 Q57 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:22:y:2011:i:4:p:485-498

DOI: 10.1016/j.chieco.2010.12.002

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