An evaluation of the impact of the natural forest protection programme on rural household livelihoods

Abstract

In this chapter, we estimate the impact on local household livelihoods of the Natural Forest Protection Programme (NFPP), which is the largest logging ban programme in the world, and aims to protect watersheds and conserve natural forests. In doing so we use a series of micro-econometric techniques for policy evaluation to assess the impacts of the NFPP on two interrelated facets of household livelihoods, namely income and off farm labour supply. We find that the NFPP has had a negative impact on incomes from timber harvesting but has actually had a positive impact on total household incomes from all sources. Further, we find that off farm labour supply has increased more rapidly in NFPP areas than non-NFPP areas. This result is strongest for employment outside the village. On the basis of these results, policy implications for household livelihoods are drawn. © 2009 Springer Science+Business Media B.V.