Devolution of tenure rights in forestland in China: Impact on investment and forest growth

I investigate whether devolution of forestland tenure rights to households in China triggered forest investment and the impact on forest conditions. I use a panel dataset of a two-round survey of over 10,000 forestland plots held by 1500 households in eight provinces before and after the devolution. Using a quasi-experimental regression approach, I find that forestland devolved to households has higher per-area-unit, yearly labor input and capital investment. I also find larger forest cover in regions devolving more. The findings support that clearly-defined and well-protected household property rights offer an effective alternative to common-pool resources management in small-scale forestry.