Journal of Forest Economics > Vol 11 > Issue 3

Economic efficiency and shadow prices of social and biological outputs of village-level organizations of joint forest management in Gujarat, India

Dinesh Misra, , dinesh.misra@utoronto.ca Shashi Kant, , shashi.kant@utoronto.ca
 
Suggested Citation
Dinesh Misra and Shashi Kant (2005), "Economic efficiency and shadow prices of social and biological outputs of village-level organizations of joint forest management in Gujarat, India", Journal of Forest Economics: Vol. 11: No. 3, pp 141-160. http://dx.doi.org/10.1016/j.jfe.2005.07.002

Published: 01 Dec 2005
© 0 2005 Dinesh Misra, Shashi Kant
 
Subjects
 
Keywords
JEL Codes:Q150230
Joint forest managementJoint productionOutput distance functionProduction possibility frontierShadow price
 

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In this article:
Introduction
Joint forest management, village-level organizations, and JFM production process
Theoretical concepts related to output distance function
Determination of deterministic output distance function
Parameters of output distance function and production efficiency of village-level organizations
Absolute and relative shadow prices of social and biological outputs of JFM production units
Conclusions

Abstract

Joint forest management (JFM) has been argued as an optimal institutional arrangement for economic, ecological, and social sustainability, and village-level organizations (production units) are responsible for all the productive activities of JFM. A deterministic output distance function characterizing the production structure of JFM production units, in the Gujarat state of India, is calculated using the production data from 50 village-level organizations and employing a deterministic linear programming technique. The distance function includes economic, biological, and social outputs, and conventional and non-conventional factors. The results are used to calculate the efficiency and relative shadow prices of social and biological outputs of different village-level JFM organizations. Policy and management implications of efficiency and shadow prices are discussed.

DOI:10.1016/j.jfe.2005.07.002