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Despite apparent efficiency concerns, the use of agricultural insurance as a policy tool has surged in rural China. Its use offers a natural experiment to assess both economic theory of property rights and agricultural policy effectiveness, and to revisit the rent dissipation model that was originally developed to explain the role of property rights in unsustainable fisheries harvest decisions. We focus on evidence of resource overpricing behavior in the context of subsidized agricultural insurance, including evidence of a theoretically-expected increasing rent pattern. Our results reinforce the importance of transactions costs as a driver of economic inefficiency and highlight the role of social costs as an important factor to explicitly consider when designing agricultural policy. In particular, when employing the formal policy mechanism of rural agricultural insurance, we suggest that informal risk-bearing arrangements can be leveraged to reduce social costs behind apparent overpricing behavior and increase land users' welfare consistent with intended policy goals. [ABSTRACT FROM AUTHOR]

Forest carbon offset programs have suffered from low landowner uptake, in large part to their long duration. A recent innovation in forest carbon offsets is the use of short period delays to harvest, which extend the rotation age of the stand beyond what is optimal for timber alone and increase sequestered carbon. Here, we assess the economic value of a short period delay "option pricing" in forest harvest with price uncertainty using a binomial option approach, accounting both for timber and carbon. Results from an option pricing model showed that landowners can generate considerably higher revenue with managerial flexibility along with the additional revenue from carbon offset programs. These results can help forest landowners make proper ownership decisions to withstand the risk and uncertainty associated with stumpage prices, while benefiting from carbon offset revenues. [ABSTRACT FROM AUTHOR]

Prices are effective signals of many market conditions, while underpricing of tilled land in rural China poses a dilemma to this common sense. Using n = 191 imputed contracts in rural China, this paper aims to investigate the role of ambiguous property rights in the context of agricultural reforms. Using rank statistics, several candidate variables in the transaction costs function fc(•) were identified, including BMI (Body Mass Index), Knowledge, Subtraction and Farming Experience. The results show clear evidence for underpricing to restrain competition under ambiguous property rights. More illuminatingly, non-parametric regression analysis specifies a well-founded transaction costs function: increasing Subtraction by one unit increases transaction costs by the equivalent of US$513.40, while a one-year increase of farming experience reduces transaction costs by US$116.20, ceteris paribus. It concludes that social costs behind underpricing are detrimental to China's rural reform. This study contributes to economic theory, with important implications for policy makers. To encourage smooth transmission of price signals, it is important to consider farmer characteristics and develop professional farmers. [ABSTRACT FROM AUTHOR]

In the United States, “seed fund” programs in biomedical fields have been reported to enhance faculty success in securing federal awards. Seed funds are relatively small internal grants that are allocated by universities to their faculty to invigorate research, in anticipation that they will lead to larger benefits—these benefits could be the creation of stronger teams that lead to larger external grants and/or more impactful publications. We hypothesized that a seed funding approach for research on natural resources and agricultural systems, including forest systems, may have similar benefits. Here, we report that seed funding supported faculty development in numerous ways, including leveraging to generate external competitive awards. For each dollar of institutional investment in each of the three seed funding programs, faculty acquired $6, >$50, and $4.50, respectively, in external funding that was leveraged within three years of the seed fund award date. Notably, the majority of the leveraged funding was from federal granting agencies through competitive programs. Federal competitive awards are important elements of tenure and promotion dossiers, as they reflect success in acquiring grants that are difficult to obtain, thus providing evidence of research excellence. We speculate that the seed fund proposal review process prepared faculty for competitive awards. Finally, we suggest best management practices for the implementation of seed funding to support teams of faculty. [ABSTRACT FROM AUTHOR]

In this study, we assessed the impacts of climate change, forest management, and different forest productivity conditions on the water yield and profitability of loblolly pine stands in the southeastern United States. Using the 3-PG (Physiological Processes Predicting Growth) model, we determined different climatic projections and then employed a stand level economic model that incorporates, for example, prices for timber and increased water yield. We found that, under changing climatic conditions, water yield increases with thinnings and low levels of tree planting density. On average, under moderate climatic conditions, water yield increases by 584 kL·ha−1 and 97 kL·ha−1 for low and high productivity conditions, respectively. Under extreme climatic conditions, water yield increases by 100 kL·ha−1 for low productivity conditions. Land expectation values increase by 96% ($6653.7 ha−1 ) and 95% ($6424.1 ha−1 ) for each climatic scenario compared to those obtained for unthinned loblolly pine plantations managed only for timber production and under current climatic conditions. The contributions of payments for increased water yield to the land values were 38% ($2530.1 ha−1 ) and 30% ($1894.8 ha−1 ). Results suggest that payments for water yield may be a “win-win” strategy to sustainably improve water supply and the economic conditions of forest ownership in the region. [ABSTRACT FROM AUTHOR]

Forests play an important role with respect to water resources, and can be managed to increase surface- and groundwater recharge. With the creation of a forest water yield payment system, privately-owned forests, which comprise the majority of forest area in the Southeastern US, could become an important potential source of additional water supply. The economic tradeoffs between timber revenues and water yield are not well understood. To address this, we use the example case of slash pine production in Florida, and employ a forest stand-level optimal rotation model that incorporates forest management, and assessed a range of feasible water yield prices on forest profitability. Our analysis was limited to a range of water yield prices ($0.03, $0.07, and $0.30 kL-1) that would make water yield from slash pine economically competitive with water supply alternatives (e.g., reservoir construction). Even at relatively low water prices, we found that managing slash pine forests for both timber and water yield was preferred to managing just for timber when assuming an initial tree density less than 2200 trees.ha-1. However, with higher levels of initial tree planting density and low water prices, managing slash pine for timber production alone was more profitable unless stands are heavily-thinned, suggesting that even mid-rotation stands could be included in a forest water yield payments program. Compared to low-tree planting density and lightly thinned slash pine forests, an intensive approach of planting a lot of trees and then heavily thinning them generated 8% to 33% higher profits, and 11% more ($192 ha-1) on average. We conclude that payments for water yield are economically feasible for slash pine stands in Florida, and would benefit forest landowners, particularly with higher prices for water yield. [ABSTRACT FROM AUTHOR]

Forests protect water quality by reducing soil erosion, sedimentation, and pollution; yet there is little information about the economic value of conserving forests for water quality protection in much of the United States. To assess this value, we conducted a meta-analysis of willingness-to-pay (WTP) for protecting unimpaired waters, and econometrically determined several significant drivers of WTP: type of conservation instrument (tool), aquatic resource type, geographic context, spatial scale, time, and household income. Using a benefit transfer to two highly forested sites, we illustrate the importance of these factors on WTP for water quality protection programs, forest conservation and policy design. [ABSTRACT FROM AUTHOR]

Forests protect water quality by reducing soil erosion, sedimentation, and pollution; yet there is little information about the economic value of conserving forests for water quality protection in much of the United States. To assess this value, we conducted a meta-analysis of willingness-to-pay (WTP) for protecting unimpaired waters, and econometrically determined several significant drivers of WTP: type of conservation instrument (tool), aquatic resource type, geographic context, spatial scale, time, and household income. Using a benefit transfer to two highly forested sites, we illustrate the importance of these factors on WTP for water quality protection programs, forest conservation and policy design. [ABSTRACT FROM AUTHOR]

Private forests in the southeastern US are critical for providing a variety of ecosystem services, including timber production and water resource protection. Restoration of longleaf pine (LLP) forests and savannas tends to enhance some ecosystem services, including water supply, over timber production. A variety of payments for watershed services (PWS) strategies have emerged to address the market failure associated with private forests and public water supply. The nature of these programs suggests that biodiversity protection may be a positive externality, or third-party benefit, to water resource protection. This paper uses a critically engaged research approach and expert interviews to investigate how PWS programs may help prevent land use change and promote LLP restoration. We also offer recommendations on how to sustain emerging efforts to implement PWS strategies while including LLP restoration objectives. [ABSTRACT FROM AUTHOR]

The research on international trade competitiveness is progressing continuously. Environmental factors have been gradually considered in the competitiveness of international trade. However, the green assessment system of international trade competitiveness is not perfect. Building a model based on the trade economy is complex. This study combines environmental pollution data based on the forest processing industry with trade flows. Environmental trade competitiveness, pollution treatment, and trade scale were selected as the three criterion levels to construct an assessment system. The weight and score of each index were calculated by the overall entropy method. The overall entropy method is more comprehensive than the traditional entropy weight method due to introduce longitudinal comparisons of time and category. This method is a dynamic evaluation model with analysis of three-dimensional sequential data tables. The use of this method enables the assessment model to analyze more comprehensively the green level of a country's trade in wooden forest products in terms of time and product category. The green level of chemical wood pulp and sawn timber trade in China is at a high level. The pollution treatment and trade scale of chemical wood pulp and sawn timber attained a medium level of matching. The trades in particle board, hardboard, newsprint, carton board, and wrapping paper are at medium levels of green. The trades in medium density fiberboard and plywood have poor levels of green and need to improve their green production capacity. It is suggested that China should increase investment in scientific research, as well as establish policies to restrict and treat pollution in the industry of wooden forest products, while increasing the export volumes of products with high added value. China should attach importance to the pollution resulting from the manufacture of wooden forest products. The state should support policies for these producers reducing production emissions. [ABSTRACT FROM AUTHOR]

Invasive forest pests can cause environmental and economic damage amounting to billions of dollars (US) in lost revenues, restoration and response costs, and the loss of ecosystem services nationwide. Unfortunately, these forest pests do not stay confined to wildland forest areas and can spread into suburban and urban areas, imposing significant costs on local governments, homeowners, and management agencies. In this study, a contingent valuation experiment is used to estimate Florida residents' willingness to pay (WTP) a monthly utility fee that would protect urban forests from invasive pests by implementing a monitoring and prevention program for their early detection and eradication. On average, the respondents are WTP US $5.44 per month to implement the surveillance program, revealing an aggregate WTP in the order of US $540 million per year. The results also reveal that respondents are sensitive to the scope of the program, with higher rates of participation and higher WTP for a program that is more effective at preventing forest pest invasions. [ABSTRACT FROM AUTHOR]

In the southern United States the country's top wood-producing region, factors such as intergenerational land transfer and population spillover from urban areas have resulted in forestland conversion and reduced production of critical ecosystem services associated with forest systems (e.g., timber, clean water supply, wildlife habitat). Public attitudes, which drive forestland policy prescriptions, may also be evolving due to the way people experience and perceive forests (e.g., recreation), and think about the role of government in private forest decisions. These changes have significant implications for forestland management and the forest-based economy, both locally and globally. We present the results of a regional survey (n = 1669) of residents in Florida, Georgia, Mississippi, and South Carolina, which assessed attitudes toward timber harvesting and government involvement on private lands. We found significant public support for timber harvesting with a somewhat stronger focus on ecosystem maintenance compared to timber production, and strong support for policies that empower landowners (e.g., assistance programs) over regulatory strategies. We conclude that existing government policies and programs are failing to help landowners meet public demand for ecosystem service provision on private forest lands in the southeastern US. Public attitudes appear conducive to innovative policy strategies such as market-based solutions and nudges. Perceptions of forest health will likely be the metric the public and landowners will use in assessing the value of policy alternatives, in addition to economic impact. Public ignorance and indifference towards forest management also appear to be growing. [ABSTRACT FROM AUTHOR]

Prescribed burning and other active forest management treatments have been proven essential for maintaining suitable habitat conditions for many wildlife species, including the federally endangered red-cockaded woodpecker (RCW). This study examines the perception of forest management treatments of recreation users participating in various activities (hunting, hiking/backpacking, camping, off-highway vehicle riding, and canoeing/kayaking) in terms of scenic beauty and recreation satisfaction. We used photographic images to capture various forest management treatments of different intensity levels and times after treatments, and assessed users’ perception of scenic beauty and recreation satisfaction. Results indicated variation among users participating in different recreation activities, but that good quality RCW habitats offered both higher scenic beauty and higher recreation satisfaction than poor quality habitats for most activity user groups. Finally, recreation satisfaction was statistically equal to perceived scenic beauty from both good and poor-quality RCW habitats for most of the activity user groups, thus suggesting the importance of scenic beauty of forest sites in determining recreation users’ attainment of visit satisfaction. Findings conclude that forest sites developed as good quality RCW habitats in the present state also offer quality experience to recreation users, thus supporting multi-objective forestry practices in public forests. [ABSTRACT FROM AUTHOR]