Impacts of Tenure Security on Rural Households’ Forestland Investment: Evidence from Jiangxi, China

Abstract

This paper examines the distinct effects of actual and perceived security on forestland investment by rural households. To achieve this, we utilized Tobit and IV-Reg models to analyze repeated survey data from 500 households residing in 50 villages in Jiangxi Province during the years 2017 and 2018. We measured households’ investment in forest management by labor and cash inputs. The findings indicate that actual and perceived tenure security significantly influence forestland investment. Specifically, the possession of forestland certificates exhibiting a marked increase in labor and cash inputs. However, the logging quota system has a significant negative impact on cash input, but no significant effect on labor input. With regard to perceived tenure security, the evaluation and comprehension of the existing tenure policy by households contribute positively to both labor and cash inputs in forestland. From our analysis, it is recommended that the logging quota system be revised to incentivize farmers’ active participation in forest management, and the government should strive to raise awareness among rural households about forest tenure policy.