What Does It Take to Get Forest Owners to Renew Their Contract？

An Analysis of a Forestry Program in Kumakogen Town, Japan

Abstract

Sustaining forestry management is very important for forest conservation and timber provision. Voluntary incentive scheme has received much attention from policy makers to sustain forestry management in developed countries. This paper investigates forestland owners’willingness to renew their contract using data from a questionnaire survey in Kumakogen town in Japan. In this paper, we also examine whether renewal decisions are explained by non-pecuniary motivations. Econometric analysis indicates that those who have large size of properties, reside in the town, and participate because of unmotivated successors are more likely to terminate their contract. Forest owners who seldom visit their forestland are more likely to renew. Forest owners’motivation for public goods provision and recreational use increases the probability to renew. Forest owners who participated in the program because of forest association’s encouragement are more likely to renew.