Property Rights and Deforestation: The Choice of Fuelwood Source in Rural Viet Nam

Abstract

<i>This paper analyses the choice of fuelwood supply sources in rural Viet Nam, of which one, the open-access area, is subjected to deforestation. A random parameter logit estimation allows us to calculate cross elasticities between the various sources, using derived shadow prices for fuelwood from each source. We find a relatively stronger substitution effect emerging between user-right plantation and open-access areas. This implies that a policy intervention of fuel from plantations might be an efficient option to halt deforestation. Analysis of producer surplus measures explains the reluctance by households to accept managerial responsibilities of open-access areas.</i> (JEL D23, Q23)