Financial compensation for natural forest logging ban: Standard calculation based on willingness to accept

Abstract

To alleviate the deteriorating environment and protect biodiversity, China has implemented a natural forest protection system, demonstrating the importance of sustainable forest management for ecological conservation and socio-economic development, including the complete cessation of commercial logging of natural forests. Financial compensation is adopted to increase farmers’ enthusiasm within the commercial Logging Ban of Natural Forests framework. This study used the contingent valuation method and the Heckman two-stage model to explore farmers’ willingness to participate in the Logging Ban of Natural Forests and the willingness to accept by survey data on 486 farming households. 72% of farmers are willing to join the Logging Ban of Natural Forests. Their willingness to accept is 517.95 yuan/ha per year, higher than the current state subsidy standard (225 yuan/ha per year). The key factors influencing willingness to accept include the education and degree of fragmentation of woodland and village collective willingness to accept. The age of the rural household head, the fragmentation of the forest, and the evaluation of the Logging Ban of Natural Forests policies have inhibited the increase of farmers’ compensation. Farmers’ assessment of the Logging Ban of Natural Forests policy only impacts the medium level of compensation. The age and the degree of forest fragmentation would affect the higher compensation amount. The results from this study suggest more financial sources and increased compensation standards are needed. The government should also strengthen ecological awareness and adopt different compensation standards for other groups to achieve sustainable forestry.

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“…The next paper by Liao et al 9 incorporates the concept of financial compensation to evaluate the effects of the natural forest protection system on China's ecological conservation and socio-economic development policies. The contingent valuation method is applied based on the survey data from 486 farming households.…”