Devolution of Tenure Rights in Forestland in China Impact on Investment and Forest Growth

I investigate whether devolution of forestland tenure rights to households in China triggered forest investment and the impact on forest conditions. I use a panel dataset of a two-round survey of over 10,000 forestland plots held by 1,500 households in eight provinces before and after the devolution. Using a quasi-experimental regression approach, I find that forestland devolved to households has higher per-area-unit, yearly labor input and value of investment. I also find larger forest cover in regions devolving more. The findings acclaim that clearly-defined and well-protected household property rights offer an effective alternative to common-pool resources management in small-scale forestry