Protecting Forests Through Farming. A Dynamic Model of Nontimber Forest Extraction

Forest resource extraction by local communities has been cited as a major impediment to the efficient management of protected forests. This paper develops a two sector dynamic model for farming and forest resource extraction by communities living in the forest periphery. The model assumes that land under forestry is constant and households allocate their time to farming and forestry. Comparative dynamic results suggest that higher prices for agriculture output, lower input prices, better knowledge of farming techniques and a lower discount rate may result in a higher equilibrium stock of forest resources. Tobit analysis with primary data collected from the Sinharaja forest in Sri Lanka provides supportive empirical evidence.     

Legal exclusions,private wealth and livelihoods: An analysis of work time allocation in protected areas

Do exclusionary forest access regimes have an unequal impact on livelihood activities? This paper analyzes primary data on time allocation to livelihood activities by forest communities in the Indian Himalayas to investigate this question. Estimation results are consistent with the hypothesis that forest access regimes affect both forest extraction behavior and other livelihood strategies. Residents of sanctuary forests, experiencing higher restrictions on forest use, decrease the proportion of time allocated to forest extraction and livestock activities, but compensate by increasing their time allocation to agriculture in comparison to residents of state-controlled protected forests. However, wealthy residents of the wildlife sanctuary expend a higher proportion of their time in managing livestock and extracting forest resources in comparison to its less affluent residents. Thus wealth enables circumvention of access restrictions despite legalization of exclusion. Findings of this study have implications for design of biodiversity conservation and carbon sequestration policies.     

森林传统管护向社区共管转型的制度变迁探析——基于对白水江保护区李子坝行政村的实证研究

社区共管模式在我国保护区管理当中得到了广泛的应用,但其发展仍处于初级实践阶段,且依然存在很多问题值得学界关注。文章以白水江保护区共管示范基地李子坝村为例,旨在通过制度变迁视角和制度效率评价方法,对其传统管护向共管模式转型的变迁效率、演替规律及衍生路径进行探析。文章期冀在为社区共管必要性和可行性辅以实证支持的同时,也为保护区共管路径的选择和共管模式的具体实施提供理论参考。     

Forest incomes and rural livelihoods in Chiradzulu District, Malawi

This paper examines forest income among rural dwellers in one of Malawi's most densely populated districts, Chiradzulu. 160 households were interviewed in two sites, only 20 km apart, purposely selected on the basis of access to a forest reserve. People are extremely poor, with 97% having incomes of less than 1 USD/day. Forest income constitutes around 15% of total income; only non-farm income (47%) and agriculture (28%) rank higher. The poorest segment depends more on forest income than the least poor group, but the medium income group exhibits the highest dependence. Fuelwood constitutes the major source of such income followed by fodder. The incomes mainly support current consumption. People with better access to the forest reserve have higher total income, forest income, and relative forest income. As revealed through a Gini-coefficient analysis, forest resources have an important income equalizing effect across rural households. A particular group of resource poor farmers (8.1% of sample), with little access to agricultural land and a high representation of female heads, derives an average of 65% of their income from the forest. An important policy lesson is that restricting people's access to forest resources can have substantial effects on household livelihoods and welfare, and would serve to increase income inequalities in the area. Livelihood researchers should now recognize the substantial income from forest resources.     

Sunk Costs, Market Access, Economic Integration, and Welfare

The nature of the equilibrium that arises after economic integration is shown to depend crucially on how initial entry costs are divided along two separate dimensions: market access versus technology costs, and fixed versus sunk costs. There are three post-integration equilibrium regimes: a traditional trade theory regime which arises when both market access costs and fixed costs are small, a new trade theory regime which arises when market access costs are small but fixed costs are high, and a market access regime which arises when market access costs are high. While the first two regimes have already appeared in the literature, the third is new. The sign, magnitude, and qualitative behavior of the welfare effects of integration across all three regimes depend on the configuration of these costs.     

Fire use and prevention by traditional households in the Brazilian Amazon

Fire is an important land management tool for smallholders in the Brazilian Amazon. However, when fires are not properly controlled they can give rise to large-scale wildfires that threaten forests, agricultural plantations, and settlement areas. We use data from a survey of 220 households to examine fire prevention and the scale of fire prevention and burning activities among traditional subsistence households in the Tapajós National Forest in Pará, Brazil. We find that in traditional households, economic variables such as the opportunity cost of household time, market conditions, and the hiring wage are important predictors of these decisions, as is household reliance on standing forest resources for non-timber products. Our results confirm that traditional households actively engage in fire prevention, and suggest that fire prevention is motivated by a desire to protect agricultural plantations as well as standing forest reserves. The results suggest that increased income, improved infrastructure, and improved access to markets for labor and agricultural goods will encourage fire prevention among smallholders in communities with education and planning programs.     

Forest dependence and participation in CPR management: Empirical evidence from forest co-management in Malawi

We develop an endogenous sample selection model to investigate how forest dependence influences a household's decision to participate in forest co-management program. Using data from Chimaliro and Liwonde forest reserves in Malawi, we find that where forests primarily have a gap filling or safety net role in Chimaliro, high forest dependency induces higher rates of participation. However, with more commercial forest uses and a more heterogeneous social context as in Liwonde, high forest dependency reduces the incentives for participation. The findings point to the need to design parallel interventions alongside the forest co-management program in order to provide supplementary income sources to participants and increase the incentives for participation.     

Are Flexible Exchange Rate Regimes more Volatile? Panel GARCH Evidence for the G7 and Latin America

This paper investigates empirically the relationship between exchange rate (ER) regimes and volatility of real exchange rate depreciation (RERD), comparing the G7 and 17 Latin American (LA17) countries, during 1970–2010. We estimate a panel autoregressive model with generalized autoregressive conditional heteroskedasticity (GARCH) errors and regime‐specific effects on both the conditional mean and conditional variance. For the G7, we find that, relative to the fixed ER regime, only the freely floating regime shows higher RERD volatility; under the managed floating regime the RERD is equally volatile and under the crawling peg it is actually less volatile. Instead, in the case of the LA17, more flexible ER regimes are associated with more volatile RERD rates, with higher volatility under the managed floating regime than under the crawling peg and with extremely high volatility under the “freely falling” ER regime.     

Property Regimes as Information Regimes: Efficiency and Economies of Joint Production

The paper argues that it is useful to view property regimes asinformation regimes. A conceptual model and numerical example are usedto show that, under some reasonable assumptions, a common propertyregime is preferable to a private property regime when property regimesare viewed as information regimes. The paper considers a case ofidiosyncratic risk in a dynamic grazing context where the marginality ofthe resource is such that insurance markets are thin or non-existent.Agents are thought to be risk averse and exogenous enforcement of a risksharing scheme is not feasible. The policy implication is that theestablishment and maintenance of a common property regime is shown to bea (possibly) reasonable institutional response in the face of difficultand particular circumstances when property regimes are viewed asinformation regimes.     

Currency Regime and Monetary Autonomy. Empirical Evidence Using Recent and Global Data from 1990 to 2007

This paper analyzes the exchange rate regimes from the perspective of monetary independence. To be specific, using recent and global data, we examine the sensitivity of domestic interest rates to the international interest rate, by conducting co-integration tests and by estimating the adjustment speeds through error-correction model, for different de facto currency regimes and for different types of capital markets. Our estimation results basically support the traditional views of ‘impossible trinity’, as far as the cases with open capital markets are concerned. The floating regime shows the less sensitivity of domestic interest rates to the international interest rate than the fixed regime does, which implies some capacity for domestic monetary autonomy under the floating regime. The cases with closed capital markets, on the other hand, include the cases showing high sensitivity of interest rates in some emerging market economies, which might imply the ‘fear of floating’ hypothesis.     

The choice of exchange rate regime: An empirical analysis for transition economies*

We analyze the choice of exchange rate regimes of the 25 transition economies in Europe and the CIS after 1990. The empirical results show that the traditional Optimum Currency Area considerations provide relevant guidance for the regime choices in these countries. Moreover, regime choices are influenced by inflation rates, cumulative inflation differentials, and international reserves sufficiency. That is, macroeconomic stabilization and the ability to commit to exchange rate pegs also play important roles. Large government deficits have ambiguous effects; they increase the likelihood of moving from flexible to intermediate regimes as well as that of moving from fixed to intermediate ones.     

A comparative dynamic analysis of a growth model under alternate policy regimes

Comparative dynamic analysis is conducted on a growth model with variable price levels and wage rates. A perturbation technique is used to compare the economy's time paths near a balanced growth path in response to alternate policy regimes. Various dynamic policy multipliers are calculated in response to some of the alternate policy regimes such as the balanced-budget fiscal regime, the constant price regime, the full-employment regime, etc., to examine their dynamic implications on the economy's behavior. Temporary deviations in the fiscal variables are found to leave no permanent effects under all but one of the regimes examined.     

Assessing fishers' empowerment in inland openwater fisheries in Bangladesh

The Community Based Fisheries Management (CBFM) approach has made a significant contribution towards improvement of fishers' empowerment of inland openwater fisheries in Bangladesh aiming to manage their resources efficiently. This arrangement introduced CBFM approaches named fisher-led, community-led and women-led approach. A wider range of local institutional arrangements as community based organizations (CBOs) have been established through participatory process with legal entity. Now, the CBOs as local institutions and fishers are more empowered in participation of fishery management under co-management arrangement. The study reveals that there is still lack of institutional arrangement to be achieved at optimum level. This paper presents and assesses the empowerment status of the fisher communities in inland openwater fisheries under co-management arrangement in Bangladesh through Factor analysis and regression model. This study might have policy implication to replicate the community based fishery management approach to promote empowerment for better management.     

Vertical separation versus vertical integration in a macroeconomic model with imperfect competition

This paper develops a monopolistic competition macroeconomic model, and uses it to discuss the determination of relevant macro variables under both vertical separation and vertical integration regimes. Several main findings emerge from the analysis. First, in the market equilibrium aggregate output and consumption under the vertical integration regime are greater than under the vertical separation regime, while the product price index under the vertical integration regime is lower than that under the vertical separation regime. Secondly, the level of real aggregate profits under the vertical integration regime will be higher (lower) than that under the vertical separation regime if the degree of monopoly power is relatively large (small). Third, the welfare level under the vertical integration regime will be higher than that under the vertical separation regime regardless of the degree of monopoly power.     

基于产权理论的森林资源管理模式研究

森林资源是一种可再生的公共资源,无效的管理将导致资源的稀缺性进一步加剧。有效管理的前提是对资源产权的正确界定,国家管理与私人管理无法有效地解决森林资源的危机,多样性的参与式社区共管方式是森林资源管理模式的一个新选择。     

中国自然保护区社区共管现状分析和改革建议

社区共管在中国自然保护区中已经开展了近60年的试验和探索，但学术研究上仍以个案分析为主，全面性和系统性不足。对自然保护区社区共管的概念、发展和类型进行了研究，提出了不全面、不持续、不有效和不积极4个社区共管问题，并分析了8个问题成因。其中，外部成因主要为权属混乱、体制不顺、资金缺位、法律缺失，而内部成因可概括为思想不一、能力不够、方法不当和研究不足。在自然保护地体制改革的背景下，为进一步完善社区共管机制，研究提出了5项改革建议：1)明确社区共管法律地位，深化各方思想认识；2)分类型、分阶段建立保护区社区共管试点；3)探索多元化的社区协调发展路径；4)确立保护区管理机构社区共管的职能、人员和经费；5)成立跨领域专家小组，建立理论框架和培训体系。     

Property rights and sustainable nature tourism: adaptation and mal-adaptation in Dalarna (Sweden) and Maine (USA)

Tourism is viewed in many industrial nations as an environmentally friendly way to revitalize distressed rural economies and communities. In the forest regions of Dalarna and interior Maine, hopes are pinned on nature-based tourism, with the presumption that natural capital is underutilized. This paper explores the potential and pitfalls of nature tourism as a basis for sustainable rural development in regions where most land is held privately but quasi-open access for recreation has been either a right (Dalarna) or a customary entitlement (Maine). The paper applies theories of common pool resources and impure public goods to show that both property regimes are mal-adapted for sustainable nature tourism. Limited exclusion combined with rivalness in land uses mis-aligns incentives facing landowners, tourists, and recreation businesses. Short-term effects include congestion, reduced economic opportunity, and depressed production of non-recreational goods. Longer-term effects include environmental degradation and weak incentives for value-added investment. Tourism development is further impeded by a scale mis-match between small ownerships and large efficient recreation management units. The analysis suggests that sustainable nature tourism faces four land use challenges.     

Exchange rate volatility and regime change: A Visegrad comparison

We analyze exchange rate volatility in the Visegrad Four countries during the period in which they abandoned tight regimes for more flexible ones. We account for path dependency, asymmetric shocks, and movements in interest rates. In addition, we allow for a generalized error distribution. The overall findings are that path-dependent volatility has a limited effect on exchange rate developments and that the introduction of floating regimes tends to increase exchange rate volatility. During the period of flexible regimes, volatility was mainly driven by surprises. Asymmetric effects of news tend to decrease volatility under the floating regime. Interest differentials impact exchange rate volatility contemporaneously under either regime, although we find no intertemporal effect of interest differentials. Journal of Comparative Economics 34 (4) (2006) 727–753.     

Explaining the performance of state–community joint forest management in India

This paper seeks to identify and analyze the factors that explain differential outcomes of joint forest management (JFM) in the Indian state of Andhra Pradesh. Factors affecting the performances of JFM communities are analyzed using an ordered logit model. The results indicate that JFM communities are more likely to perform well when they are smaller in size and when forest resources in the JFM community are scarce. Presence of social capital and high value forests are also likely to promote good forest growth. Effective protection of forests is likely to contribute to the growth of forests. JFM communities that were initiated by NGOs are more likely to manage forests effectively than the one initiated by the Forest Department.     

PRIVATE AND PUBLIC EDUCATION: HUMAN CAPITAL ACCUMULATION UNDER PARENTAL TEACHING*

This paper examines a simple overlapping generations model of human capital accumulation under both the public and private education regimes. Both young individuals and their parents allocate time to human capital accumulation. Under the public education regime, the government collects tax to finance expenditure for education resources. We show that there exists a level of tax which maximizes the speed of human capital accumulation because of parental teaching; and, if the government chooses tax rates adequately, human capital grows faster and welfare levels become higher under the public education regime than under the private.