Daowei Zhang

Sticks, Carrots, and Reforestation Investment

Environmental regulations and public financial assistance programs are the typical “sticks” and “carrots” facing non-industrial private forest (NIPF) landowners in the U.S. This paper presents a theoretical framework and empirical evidence on the impacts of the Endangered Species Act and public financial assistance programs–cost-share programs and a tax incentive program–on reforestation investment behavior. The results indicate that NIPF landowners’ reforestation investments are influenced negatively by environmental regulations and positively by public financial assistance programs. The results imply that both sticks and carrots can be used simultaneously to influence NIPF landowners’ reforestation behavior. (JEL Q23)

Supply of Hunting Leases from Non-Industrial Private Forest Lands in Alabama

We used a two-step approach to jointly analyze participation of non-industrial private forest landowners in hunting leases and the determinants of hunting lease fees. Data for this study were obtained from a survey of landowners in Alabama (n = 227). The results show that land ownership type, tract size, and landowners’ place of residence, employment status, and concern for personal safety are determinants of participation in hunting leases. Factors influencing hunting lease fees include site-specific characteristics such as share of agricultural land relative to forest land, tract size, year-round water availability, type of access, and enhanced features such as streamside management zone, habitat improvement desirable to wildlife, and provision of services. The study has implications for landowners’ land use decisions and economic returns. This research is partially funded by Alabama Department of Conservation and Natural Resources and Alabama Forestry Commission. We are thankful to Amy Griliot and two anonymous reviewers and the editor of this journal for comments that have led to a significant improvement to this article. All remaining errors belong to the authors.

Factors Associated with Declining Hunting License Sales in Alabama

This article documents the magnitude of and factors associated with declining hunting license sales in Alabama. Respondents were classified as active hunters, former hunters, or nonhunters. Active hunters were relatively satisfied with their recent hunting experiences and the wildlife management programs conducted by the state. In addition, they were supportive of a modest increase of hunting fees. Reasons given by former hunters for quitting the activity were lack of time, lack of public hunting areas, aging, and loss of interest. Nonhunters either did not have an interest in hunting or considered the killing of animals as cruel. Reasons for lack of participation by nonhunters do not indicate a high probability of recruiting hunters from the ranks of nonhunters. These results suggest that agencies and organizations that depend on hunters should put resources into keeping active hunters from becoming former hunters. Based on the results and comments from active and former hunters, it would seem that the best mechanisms for hunter retention are to provide opportunities for active hunters to participate in hunting and to keep hunting woven into the social fabric of community.

Property Tax Policy and Land-Use Change

In this study, we analyze the effect of property taxes on changes between agricultural, forestry, Conservation Reserve Program, and developed land uses in Louisiana. We estimate a random parameters logit model of land-use conversion from the National Resources Inventory plot data. Our results indicate that land-use changes are inelastic with respect to property taxes. Simulation shows that current use valuation policy, while slowing down development of rural lands, also affects changes between rural land uses. (JEL Q15, H23)

Interdisciplinary research at the Urban–Rural interface: The West ga project

As human populations increase, ecological and social issues become inextricably linked to a greater degree. Solutions to complex social–ecological problems can only be derived through the use of integrated research that can account for the interplay of many factors across traditional discipline lines. We are using such an integrated research to clarify relationships among socioeconomic drivers, ecological effects, and social and policy feedbacks associated with urban development of forested landscapes. Our approach is goal oriented and interdisciplinary in nature and involves a team composed of ecologists, anthropologists, and economists who exchange ideas and information across disciplinary lines. The team and approach has evolved through many of the barriers to interdisciplinary research that have been identified by other authors. Our goal is to develop a predictive capability in order to anticipate ecological and social implications of urban development on natural resources in the southeastern United States. Our integrated model and subsequent papers in this special issue are presented.

Assessing the Financial Performance of Forestry-Related Investment Vehicles: Capital Asset Pricing Model vs. Arbitrage Pricing Theory

Capital asset pricing model (CAPM) and arbitrage pricing theory (APT) are used to assess the financial performance of eight forestry-related investment vehicles. Although results from APT support previous findings from CAPM about timberland investments, three bodies of evidence show that APT findings are more robust. The major conclusions are (a) institutional timberland investments and timberland limited partnerships have a low risk level and excess returns; (b) forestry industry companies have not earned risk-adjusted returns, and the performance of medium forest industry firms is worse than that of large firms; (c) stumpage price does not resemble the return generation process of timberland investments; and (d) lumber futures have little excess return. Copyright 2001, Oxford University Press.

The influence of the form of tenure on reforestation in British Columbia

Abstract This paper describes the results of an empirical investigation of the variation in reforestation among different types of forest tenure in British Columbia. Indicators of management, based on available statistical information about not satisfactorily restocked (NSR) lands and artificial reforestation on cutover lands, are compared across four major forms of tenure, ranging from relatively secure private holdings to relatively short-term volume licenses. Data on a large number of cutblocks under each form of tenure are analyzed to examine the extent to which differences in reforestation are attributable to the form of tenure, natural attributes of the land and other factors. The results indicate that, on private lands, NSR land occurs less frequently and comprises a smaller portion of cutover lands, and planting is done more often and more promptly, than on licensed Crown lands. Generally, the findings support the proposition that reforestation is significantly influenced by the form of forest tenure, and that more intensive resource management is fostered by more secure forms of tenure.

Faustmann in an uncertain policy environment

Abstract This paper deals with optimal forest rotation age and silvicultural investment under policy or regulatory uncertainty to which wasteful deforestation and lack of reforestation and afforestation efforts in the developing countries and loss of old growth forests and biodiversity in the developed countries are attributed. Incorporating a stochastic uncertainty factor into the familiar deterministic Faustmann formula yields a result that confirms with casual observations — when policy uncertainty is present, forest stands are harvested earlier and silvicultural investment is smaller than otherwise. The policy implication is that, in order to promote forest resource conservation, encourage afforestation and reforestation, and attack other forest-related problems effectively, the pervasive nature of policy uncertainty needs to be curbed.

Determinants of Timberland Use by Ownership and Forest Type in Alabama and Georgia

Land use changes and timberland use by ownership and forest type in Alabama and Georgia between 1972 and 2000 are analyzed using a modified multinomial logit approach. Low average land quality, federal cost-share incentives, and favorable returns to forestry relative to agriculture were the main factors associated with timberland increase. Higher forestry returns helped increase industrial timberland but not nonindustrial private forests. An increase in hardwood forests at the expense of softwood and mixed forests was driven by increasing hardwood returns. Increasing softwood returns and tree planting assistance programs alleviated declines in softwood forests. Because factors influencing timberland use changes differ by ownership and forest type, treating all timberland as one major category may lead to incorrect predications.

Determinants of Forest Landowner Participation in the Endangered Species Act Safe Harbor Program

This article presents an empirical analysis of the determinants of landowner participation in the Safe Harbor program. Safe Harbor has been introduced as an alternative to the traditional “command and control” approach to implementing the Endangered Species Act. Results from the empirical model suggest that size of land ownership, certain land characteristics, some silvicultural management practices, and landowner perceptions and opinions are the significant determinants of participation in the program. The results will aid public agencies and policy-makers as they refine the program contents and strategies, thereby increasing the rate of participation.