Post -harvest land use decisions of private forest landowners in Taiwan

Tzeng-Hua Yang, Purdue University

Abstract

This research studied the post harvest land use decisions of private forest landowners in Taiwan. The objective was to understand why some landowners reforest, while others fallow their forestland or convert it to other crops after harvesting timber. Additional objectives were to estimate the likely effects of Taiwan's Reforestation Subsidy Program (RSP) and find other reforestation incentives that fit the needs of landowners. The primary data was gathered using qualitative interviews and a mail survey. The analysis consisted of case comparisons, standard statistical summary, and estimation of a multinomial logit behavioral model. Based on responses from the mail survey data, after timber harvesting, approximately 56 percent of landowners reforested, 34 percent fallowed their forestlands, and 10 percent planted crops on their forestland. Landowners who reforested after harvesting do not do so to obtain economic benefits. Their motivations were primarily altruistic, based on family tradition and a concern for future generations. Aesthetic enjoyment was also a factor. Those who fallowed their forestlands after harvests appeared to have less ability to properly manage their forestlands because of lack of manpower, distance from forestlands to their residence, shared ownership, or other natural or man-made limitations. Landowners who planted crops after timber harvests indicated that their forestlands were suitable for cropping and they needed income from the land to maintain their livelihood. Furthermore, they thought they had the right to freely use their forestland regardless of regulatory requirements. They also believed that they already met the objectives of the regulations because they were conserving soil and water. The RSP is one of the most important forestry programs in Taiwan. On average, RSP expenditures totaled NT$ 1.4 billion every year from 1997 to 2001, or about 20 percent of the national annual forestry budget. The data indicated that the RSP does increase private reforestation. Without the cash subsidy, about one-fourth of those who reforested would have instead fallowed or planted crops on their forestlands. In addition, without the subsidy, about one-fourth of landowners may not reforest a large tract size of their forestlands or will delay the work. However, the subsidy also was found to have some negative impacts such as encouraging landowners to harvest earlier and replant in order to obtain the cash subsidy, which is not consistent with the original purpose of the RSP. In addition, about one-third of the landowners who received the cash subsidy would have reforested without government assistance. The results suggest that an effective approach might be to improve landowners' forestland management attitudes and skills through education programs and indirect incentives such as technical assistance, blight and plant disease prevention, and introduction of new tree species.

Degree

Ph.D.

Advisors

Hoover, Purdue University.

Subject Area

Forestry|Agricultural economics

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