IDEAS home Printed from https://ideas.repec.org/p/lvl/piercr/2013-08.html
   My bibliography  Save this paper

Have the Key Priority Forestry Programs Really Impacted on China's Rural Household Income

Author

Listed:
  • Can Liu Hao
  • Katrina Mullan
  • Qingjiao Rong
  • Wenqing Zhu

Abstract

We use a large unique household panel data set spanning 16 years to estimate the impacts of three major Chinese forest conservation and reforestation programs on household incomes. The programs are the most significant of China’s Key Priority Forestry Programs, namely the Sloping Land Conversion Program (the SLCP), the Natural Forest Protection Program (the NFPP), and the Desertification Combating Program around Beijing and Tianjin (the DCBT). Cluster effects with county and environment factors have been estimated by using year dummy variables. Fixed model with cluster effects has been used. In addition to estimating the total impacts of the programs, individually and in combination, we disaggregate the effects by income source, stage of policy implementation, and duration of participation. We find minimal effects on total incomes from the programs overall, which are quiet different with other research empirical results, .but the more detailed results show that the initial stages of the programs, and the early years of participation had negative or neutral effects on land-based incomes, while in more recent years, impacts have improved, and in some cases become positive.

Suggested Citation

  • Can Liu Hao & Katrina Mullan & Qingjiao Rong & Wenqing Zhu, 2013. "Have the Key Priority Forestry Programs Really Impacted on China's Rural Household Income," Working Papers PIERI 2013-08, PEP-PIERI.
  • Handle: RePEc:lvl:piercr:2013-08
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/20891
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emi Uchida & Jintao Xu & Scott Rozelle, 2005. "Grain for Green: Cost-Effectiveness and Sustainability of China’s Conservation Set-Aside Program," Land Economics, University of Wisconsin Press, vol. 81(2).
    2. Jintao Xu & Ran Tao & Zhigang Xu & Michael T. Bennett, 2010. "China’s Sloping Land Conversion Program: Does Expansion Equal Success?," Land Economics, University of Wisconsin Press, vol. 86(2), pages 219-244.
    3. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 487-535.
    4. Weyerhaeuser, Horst & Wilkes, Andreas & Kahrl, Fredrich, 2005. "Local impacts and responses to regional forest conservation and rehabilitation programs in China's northwest Yunnan province," Agricultural Systems, Elsevier, vol. 85(3), pages 234-253, September.
    5. Greenwald, Bruce C., 1983. "A general analysis of bias in the estimated standard errors of least squares coefficients," Journal of Econometrics, Elsevier, vol. 22(3), pages 323-338, August.
    6. Zhang, Wei & Liu, Can, 2005. "The Impact of Environmental Policy on Household Income and Activity Choice: Evidence from Sandstorm Source Control Program in North China," 2005 Annual meeting, July 24-27, Providence, RI 19482, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    8. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    9. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    10. Chen Xie & Jincheng Zhao & Dan Liang & Jeff Bennett & Lei Zhang & Guangcui Dai & Xuehong Wang, 2006. "Livelihood impacts of the conversion of cropland to forest and grassland program," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(4), pages 555-570.
    11. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    12. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    13. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    14. Xu, Jintao & Yin, Runsheng & Li, Zhou & Liu, Can, 2006. "China's ecological rehabilitation: Unprecedented efforts, dramatic impacts, and requisite policies," Ecological Economics, Elsevier, vol. 57(4), pages 595-607, June.
    15. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    Full references (including those not matched with items on IDEAS)

    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. Hao, Can Liu & Mullan, Katrina & Rong, Qingjiao & Zhu, Wenqing, 2013. "Have the Key Priority Forestry Programs Really Impacted on China’s Rural Household Income," PEP Working Papers 160429, Partnership for Economic Policy (PEP).
    2. Liu, Can & Mullan, Katrina & Liu, Hao & Zhu, Wenqing & Rong, Qingjiao, 2014. "The estimation of long term impacts of China's key priority forestry programs on rural household incomes," Journal of Forest Economics, Elsevier, vol. 20(3), pages 267-285.
    3. Vikström, Johan, 2009. "Cluster sample inference using sensitivity analysis: the case with few groups," Working Paper Series 2009:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Bennett, Michael T. & Mehta, Aashish & Xu, Jintao, 2011. "Incomplete property rights, exposure to markets and the provision of environmental services in China," China Economic Review, Elsevier, vol. 22(4), pages 485-498.
    5. repec:gat:wpaper:1509 is not listed on IDEAS
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. A. Colin Cameron & Douglas L. Miller, 2010. "Robust Inference with Clustered Data," Working Papers 106, University of California, Davis, Department of Economics.
    8. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    9. Bennett, Michael T., 2008. "China's sloping land conversion program: Institutional innovation or business as usual?," Ecological Economics, Elsevier, vol. 65(4), pages 699-711, May.
    10. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    11. Song, Conghe & Zhang, Yulong & Mei, Ying & Liu, Hua & Zhang, Zhiqiang & Zhang, Quanfa & Zha, Tonggang & Zhang, Kerong & Huang, Chenglin & Xu, Xiaoniu & Jagger, Pamela & Chen, Xiaodong & Bilsborrow, Ri, 2014. "Sustainability of Forests Created by China's Sloping Land Conversion Program: A comparison among three sites in Anhui, Hubei and Shanxi," Forest Policy and Economics, Elsevier, vol. 38(C), pages 161-167.
    12. Démurger, Sylvie & Pelletier, Adeline, 2015. "Volunteer and satisfied? Rural households' participation in a payments for environmental services programme in Inner Mongolia," Ecological Economics, Elsevier, vol. 116(C), pages 25-33.
    13. Qu, Futian & Kuyvenhoven, Arie & Shi, Xiaoping & Heerink, Nico, 2011. "Sustainable natural resource use in rural China: Recent trends and policies," China Economic Review, Elsevier, vol. 22(4), pages 444-460.
    14. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    15. A. Colin Cameron & Douglas L. Miller, 2010. "Robust Inference with Clustered Data," Working Papers 318, University of California, Davis, Department of Economics.
    16. David G. Blanchflower & Andrew Oswald, 1995. "International Wage Curves," NBER Chapters, in: Differences and Changes in Wage Structures, pages 145-174, National Bureau of Economic Research, Inc.
    17. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    18. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    19. Sylvie Démurger & Haiyuan Wan, 2012. "Payments for ecological restoration and internal migration in China: the sloping land conversion program in Ningxia," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-22, December.
    20. Fluvià, Modest & Rigall-I-Torrent, Ricard & Espinet, Josep Maria & Garriga, Anna & Saló, Albert, 2011. "Precios implícitos de los atributos de los productos turísticos: ¿Qué esconde el efecto de la localización?/Implicit Prices of the Attributes of Tourism Products: What is Hidden Behind Location?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 781-802, Diciembre.
    21. Klishchuk Bogdan & Zelenyuk Valentin, 2012. "Impact of Services LIberalization on Firm Level Productivity in Eastern Europe and Central Asia," EERC Working Paper Series 12/03e, EERC Research Network, Russia and CIS.

    More about this item

    Keywords

    Priority Forest Programs; rural household income; rural development; forest economics; ecological restoration.;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:lvl:piercr:2013-08. 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: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    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.