Decentralization,market integration and efficiency-equity trade-offs: Evidence from Joint Forest Management in Ethiopian villages |
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| Affiliation: | 1. School of Economics, University of Cape Town, Rondebosch, Cape Town 7701, South Africa;2. Department of Economics, University of Pretoria, Pretoria, South Africa;3. Guest Professor, Department of Business Administration, Technology and Social Sciences; Lulea University of Technology;1. School of Mathematical Sciences, Capital Normal University, Beijing 100048, China;2. School of Mathematical Sciences, Beijing Normal University, Beijing 100875, China;1. Department of Geography and Environmental Studies, Addis Ababa University, Addis Ababa, Ethiopia;2. International Center for Tropical Agriculture (CIAT), Addis Ababa, Ethiopia;3. Wolkite Agricultural Research Center, Wolkite, Ethiopia;4. Sustainable Land Management, Ministry of Agriculture, Addis Ababa, Ethiopia;5. International Center for Tropical Agriculture (CIAT), Nairobi, Kenya;6. International Center for Tropical Agriculture (CIAT), Cali, Colombia;7. World Wide Fund for Nature (WWF), Berlin, Germany;1. Macquarie Graduate School of Management, Faculty of Business and Economics, Macquarie University, North Ryde, NSW, 2109, Australia;2. Odette School of Business, University of Windsor, 401 Sunset Ave., Windsor, Ontario N9B 3P4, Canada;3. College of Economics and Management, Fuzhou University, Fuzhou, Fujian 350116, China |
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| Abstract: | Extant literature on Joint Forest Management (JFM) impact evaluation has concluded that it generally does not provide sufficient incentives to justify the costs that forest use restrictions impose on local people. However, there is a dearth of evidence concerning whether alternative JFM intervention with improved market linkages for non-timber forest products has similar implications. In this study, we evaluated the income and distributive effects of a JFM program in Ethiopia in which additional support was provided for improved market linkages for non-timber forest products (NTFPs). Exploiting exogenous variation in customary rights across eligible groups of communities that participate in JFM programs, as well as using heteroskedasticity-based instrumentations, we identified the income and distributive effects of the program. Our analysis shows that the program has raised the income of the households who chose to participate by approximately 400 Ethiopian Birr or 26% of per capita expenditure; that result was robust to various specifications. We also found that this effect is largely driven by marketing incentives to use non-timber forest products. However, we found that the program's benefit is biased toward the upper end of the income distribution, a result that points to the inequality-reinforcing effects of the program. |
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| Keywords: | Treatment effect JFM Market linkage Distributive effect |
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