Journal of Forest Economics > Vol 29 > Issue 1

Economic incentive and factors affecting tree planting of rural households: Evidence from the Central Highlands of Vietnam

Hoang Huu Dinh, Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), Vietnam, hoang.dinh@aya.yale.edu Trung Thanh Nguyen, Institute for Environmental Economics and World Trade, Leibniz University Hannover, Germany, thanh.nguyen@iuw.uni-hannover.de Viet-Ngu Hoang, School of Economics and Finance, Queensland University of Technology, Australia, vincent.hoang@qut.edu.au Clevo Wilson, School of Economics and Finance, Queensland University of Technology, Australia, clevo.wilson@qut.edu.au
 
Suggested Citation
Hoang Huu Dinh, Trung Thanh Nguyen, Viet-Ngu Hoang and Clevo Wilson (2017), "Economic incentive and factors affecting tree planting of rural households: Evidence from the Central Highlands of Vietnam", Journal of Forest Economics: Vol. 29: No. 1, pp 14-24. http://dx.doi.org/10.1016/j.jfe.2017.08.001

Published: 0/12/2017
© 0 2017 Hoang Huu Dinh, Trung Thanh Nguyen, Viet-Ngu Hoang, Clevo Wilson
 
Subjects
 
Keywords
JEL Codes:Q57Q20Q12
Land expropriation riskEconometricsFinancial analysis
 

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In this article:
Introduction
Forest land allocation and land grab in Vietnam
Conceptual background and empirical evidence
Study design
Results and discussion
Conclusions and policy implications

Abstract

We examine the economic incentive and the factors affecting tree planting by rural households in the Central Highlands of Vietnam. Data are from a household survey conducted in three districts of Lam Dong province. A financial analysis is undertaken to identify the economic incentive and a Heckman econometric regression model is used to examine the determinants of tree planting. Our results show that tree planting is financially more profitable than leaving land abandoned. However, the decision and intensity of tree planting by rural households are affected by various factors representing household characteristics, farm endowment, bio-physical factors, social-institutional support, and the perception of farmers about forestland expropriation risk. We suggest these factors be considered in reforestation programs in the future.

DOI:10.1016/j.jfe.2017.08.001