Allocative efficiency or misallocation of resources? The emergence of forestland rental markets and the forest devolution reform in China,European Review of Agricultural Economics

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Allocative efficiency or misallocation of resources? The emergence of forestland rental markets and the forest devolution reform in China
European Review of Agricultural Economics ( IF 3.3 ) Pub Date : 2022-11-25 , DOI: 10.1093/erae/jbac028
Yuanyuan Yi ₁ , Fredrik Carlsson ₂ , Gunnar Köhlin _{2,

3} , Jintao Xu ₁

Affiliation

This paper evaluates whether the devolution reform of forestland to household management improves allocative efficiency and household welfare through participation in forestland rental markets. Using a household panel dataset from three Chinese provinces, we find positive effects of the emerging forestland rental markets: with the reform, forestland was transferred to forestland-constrained and labour-rich households and households with higher levels of productivity in forestry. Participation in forestland rental markets increases household per-capita income and decreases the likelihood of income falling below the poverty line. We do not find any support for forestland captured by land-richer, wealthier, larger or powerful households.

更新日期：2022-11-25

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