Journal of Forest Economics > Vol 29 > Issue 1

Evaluating the potential of marketable permits in a framed field experiment: Forest conservation in Nepal

Raja Rajendra Timilsina, School of Economics and Management, Kochi University of Technology, Japan, Koji Kotani, Research Center for Future Design, Kochi University of Technology, Japan, kojikotani757@gmail.com
 
Suggested Citation
Raja Rajendra Timilsina and Koji Kotani (2017), "Evaluating the potential of marketable permits in a framed field experiment: Forest conservation in Nepal", Journal of Forest Economics: Vol. 29: No. 1, pp 25-37. http://dx.doi.org/10.1016/j.jfe.2016.11.003

Published: 0/12/2017
© 0 2017 Raja Rajendra Timilsina, Koji Kotani
 
Subjects
 
Keywords
JEL Codes:C93Q23
Forest conservationFramed field experimentMarketable permits systemUniform price auction
 

Article Help

Share

Download article
In this article:
Introduction
Overview of community forestry in Nepal
Design of the framed field experiments
Experimental results
Conclusion

Abstract

A marketable permits system (MPS) has been deemed effective in laboratory experiments, however, little is known about how the MPS works in the field. We evaluate the MPS efficiency for forest conservation by framed field experiments in Nepal. Forestland demands are elicited from farmers, with which the experiments are carried out. The novelty lies in instituting a uniform price auction (UPA) under trader settings and in identifying the MPS efficiency for forest conservation in the field of developing nations. The results suggest that farmers with limited education understand UPA rules, reveal their forestland valuations and that the MPS is effective with 80% of efficiency.

DOI:10.1016/j.jfe.2016.11.003