Mission Greening: strengthening market forces to develop commercial forests in China
2002
J Tang | Y Mao
How it is possible to create or provide economic incentives for people to invest in forest plantation, and ensure the sustainability of forests in China?The depletion of forestland has been caused by a combination of rising demand for wood due to industralization, population growth, low price of wood prior to the 1980s, and institutional constraints on the supply of wood.This paper provides a literature review and discusses the role of property rights in the development of forests and highlights the social externalities of commercial forests.The paper states:Public ownership is a key factor in the supply of woodReforms to ownership patterns would provide economic incentives for people to invest in forest plantationsThe removal of institutional constraints through reforms to property rights would be beneficial.Any change of ownership to forests must be accompanied by monetary flow in the opposite direction to fully cover the loss of the previous owners.Market oriented systems should be used to efficiently allocate the user rights to forestland and the property right to stands.Monopolized purchasing and quotas should be abandoned and the regulation of timely reforestation, and the maximum hectares of forests that can be harvested at one time should be adopted.
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