IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v12y2010i3p223-230.html
   My bibliography  Save this article

Plantation development: Economic analysis of forest management in Fujian Province, China

Author

Listed:
  • Ying, Zhang
  • Irland, LIoyd
  • Zhou, Xiaohong
  • Song, Yajie
  • Wen, Yali
  • Liu, Junchang
  • Song, Weimin
  • Qiu, Yang

Abstract

Growing pressures on timber resources and increasing environmental awareness have generated the need to comprehensively analyze forest management in Fujian Province, China. Fujian is the most heavily forested province in China and experiences an unprecedented property rights reform and changes in investment in forestry by rights holders. This paper focuses on the net present value (NPV) and the internal rate of return (IRR) for projected financial performance of plantation management for five species in Fujian. Based on our data, Chinese fir offers the lowest internal rate of return on capital, but still a respectable NPV. Despite the long rotation (31Â years) masson pine returns are very high according to the NPV, because there are returns from thinnings and rosin for more than half the rotation period. Eucalyptus and bamboo offer the lowest NPVs, with high IRRs and short rotations they are well suited to planting by smallholders, and this has occurred widely. Some ecological and environmental issues are discussed according to calculation results of NPV and IRR in Fujian. Further, this should popularize the loblolly pine planting, so that species could play an increasing role. Based on the above studies, projected economic benefit to rights holders have been a powerful driver for private investment in forestry development. Property rights reforms, private investment, and demand growth have successfully fostered considerable investment in forest management in Fujian. In 2007 foreign investors initiated planting operations there. We believe management should pay more attention to forest layout and ecological issues. This would enhance forest sustainable development as well as promote further economic development, social progress and environmental protection. Fujian is one of China's key forest regions. In recent years, forest resources have been developed rapidly, with significant local benefits to employment and economic activities. To suggest ways to better promote forest development and improve management, this paper studies the projected economic performance of five of the most prominent species being planted.

Suggested Citation

  • Ying, Zhang & Irland, LIoyd & Zhou, Xiaohong & Song, Yajie & Wen, Yali & Liu, Junchang & Song, Weimin & Qiu, Yang, 2010. "Plantation development: Economic analysis of forest management in Fujian Province, China," Forest Policy and Economics, Elsevier, vol. 12(3), pages 223-230, March.
    • Handle: RePEc:eee:forpol:v:12:y:2010:i:3:p:223-230
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389-9341(09)00188-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert T. Deacon, 1994. "Deforestation and the Rule of Law in a Cross-Section of Countries," Land Economics, University of Wisconsin Press, vol. 70(4), pages 414-430.
    2. Lawrence H. Goulder, 1998. "Environmental Policy Making in a Second-Best Setting," Journal of Applied Economics, Universidad del CEMA, vol. 1, pages 279-328, November.
    3. Jensen, Anders, 2009. "Valuation of non-timber forest products value chains," Forest Policy and Economics, Elsevier, vol. 11(1), pages 34-41, January.
    4. Lawrence H. Goulder, 1998. "Environmental Policy Making in a Second-Best Setting," Journal of Applied Economics, Taylor & Francis Journals, vol. 1(2), pages 279-328, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aye Chan Ko Ko & Zhang Ying & Theint Theint Htun, 2023. "A Financial Cost-benefit Analysis of Forest Plantation for Restoration Program in Shan State of Myanmar," International Journal of Sciences, Office ijSciences, vol. 12(09), pages 35-42, September.
    2. Jiahuan Guo & Huili Feng & Jiejie Sun & Penghe Cao & Weifeng Wang & Hong Chen & Yuanchun Yu, 2019. "Application of Cloud Model to Evaluation of Forest Soil Fertility: A Case in Chinese Fir Plantations in Southern China," Sustainability, MDPI, vol. 11(22), pages 1-13, November.
    3. Salles, Thiago Taglialegna & Nogueira, Denismar Alves & Beijo, Luiz Alberto & Silva, Liniker Fernandes da, 2019. "Bayesian approach and extreme value theory in economic analysis of forestry projects," Forest Policy and Economics, Elsevier, vol. 105(C), pages 64-71.
    4. Ali Abidi, Syeda Ifrah & Noor, Junaid, 2012. "Economic Analysis of Forest Management in Pakistan - A Case Study of Changa Mange and Muree Forest," MPRA Paper 28086, University Library of Munich, Germany.
    5. Kyriaki Psistaki & Georgios Tsantopoulos & Anastasia K. Paschalidou, 2024. "An Overview of the Role of Forests in Climate Change Mitigation," Sustainability, MDPI, vol. 16(14), pages 1-19, July.
    6. Stephan Hoffmann & Dirk Jaeger & Wu Shuirong, 2018. "Adapting Chinese Forest Operations to Socio-Economic Developments: What is the Potential of Plantations for Strengthening Domestic Wood Supply?," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    7. M.R. Ullah & X.D. Liu & M. Al-Amin, 2013. "Spatial-temporal distribution of forest fires and fire weather index calculation from 2000 to 2009 in China," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 59(7), pages 279-287.
    8. Cubbage, Frederick & Kanieski, Bruno & Rubilar, Rafael & Bussoni, Adriana & Olmos, Virginia Morales & Balmelli, Gustavo & Donagh, Patricio Mac & Lord, Roger & Hernández, Carmelo & Zhang, Pu & Huang, J, 2020. "Global timber investments, 2005 to 2017," Forest Policy and Economics, Elsevier, vol. 112(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Macdonald, Kevin & Patrinos, Harry Anthony, 2021. "Education Quality, Green Technology, and the Economic Impact of Carbon Pricing," GLO Discussion Paper Series 955, Global Labor Organization (GLO).
    2. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    3. Oueslati, Walid, 2013. "Short and Long-term Effects of Environmental Tax Reform," Climate Change and Sustainable Development 146354, Fondazione Eni Enrico Mattei (FEEM).
    4. Jesse D. Jenkins & Valerie J. Karplus, 2016. "Carbon pricing under binding political constraints," WIDER Working Paper Series 044, World Institute for Development Economic Research (UNU-WIDER).
    5. Lynn Mainwaring & Richard Jones & David Blackaby, 2006. "Devolution, sustainability and GDP convergence: Is the Welsh agenda achievable?," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 679-689.
    6. Xinming Du, 2023. "Symptom or Culprit? Social Media, Air Pollution, and Violence," CESifo Working Paper Series 10296, CESifo.
    7. Devarajan, Shantayanan & Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2009. "Tax policy to reduce carbon emissions in south Africa," Policy Research Working Paper Series 4933, The World Bank.
    8. Ian W. H. Parry, 2003. "Fiscal Interactions and the Case for Carbon Taxes Over Grandfathered Carbon Permits," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(3), pages 385-399.
    9. Gonzalez, Fidel, 2012. "Distributional effects of carbon taxes: The case of Mexico," Energy Economics, Elsevier, vol. 34(6), pages 2102-2115.
    10. Oueslati, Walid, 2014. "Environmental tax reform: Short-term versus long-term macroeconomic effects," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 190-201.
    11. Linda Ferguson & Peter Mcgregor & J. Kim Swales & Karen Turner & Ya Ping Yin, 2005. "Incorporating sustainability indicators into a computable general equilibrium model of the scottish economy," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 103-140.
    12. Homma, Takashi & Akimoto, Keigo & Tomoda, Toshimasa, 2009. "Evaluation of CO2 emissions based on the consumption-based measurement under CO2 reduction scenarios of different reduction levels," Conference papers 331871, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Goulder, Lawrence H., 2013. "Climate change policy's interactions with the tax system," Energy Economics, Elsevier, vol. 40(S1), pages 3-11.
    14. Jesse D. Jenkins & Valerie J. Karplus, 2016. "Carbon pricing under binding political constraints," WIDER Working Paper Series wp-2016-44, World Institute for Development Economic Research (UNU-WIDER).
    15. Jenkins, Jesse D., 2014. "Political economy constraints on carbon pricing policies: What are the implications for economic efficiency, environmental efficacy, and climate policy design?," Energy Policy, Elsevier, vol. 69(C), pages 467-477.
    16. Daniel Jaqua & Daniel Schaffa, 2022. "The case for subsidizing harm: constrained and costly Pigouvian taxation with multiple externalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(2), pages 408-442, April.
    17. Östblom, Göran & Hammar, Henrik, 2007. "Outcomes of a Swedish Kilometre Tax. An analysis of Economic Effects and Effects on NOx Emissions," Working Papers 103, National Institute of Economic Research.
    18. Sobieralski, Joseph B., 2013. "The optimal aviation gasoline tax for U.S. general aviation," Transport Policy, Elsevier, vol. 29(C), pages 186-191.
    19. Araujo, Claudio & Bonjean, Catherine Araujo & Combes, Jean-Louis & Combes Motel, Pascale & Reis, Eustaquio J., 2009. "Property rights and deforestation in the Brazilian Amazon," Ecological Economics, Elsevier, vol. 68(8-9), pages 2461-2468, June.
    20. Yiridoe, Emmanuel K. & Nanang, David M., 2001. "An Econometric Analysis Of The Causes Of Tropical Deforestation: Ghana," 2001 Annual meeting, August 5-8, Chicago, IL 20750, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:12:y:2010:i:3:p:223-230. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.