Landowers' Participation Behavior on the Payment for Environmental Service (PES): Evidences from Taiwan
Authors: Wan-Yu Liu
To respond to the Kyoto Protocol, the policy of Payment for Environmental Service (PES), which was entitled “Plain Landscape Afforestation Program (PLAP)", was certified by Executive Yuan in Taiwan on 31 August 2001 and has been implementing for six years since 1 January 2002. Although the PLAP has received a lot of positive comments, there are still many difficulties during the process of implementation, such as insufficient technology for afforestation, private landowners- low interests in participating in PLAP, insufficient subsidies, and so on, which are potential threats that hinder the PLAP from moving forward in future. In this paper, selecting Ping-Tung County in Taiwan as a sample region and targeting those private landowners with and without intention to participate in the PLAP, respectively, we conduct an empirical analysis based on the Logit model to investigate the factors that determine whether those private landowners join the PLAP, so as to realize the incentive effects of the PLAP upon the personal decision on afforestation. The possible factors that might determine private landowner-s participation in the PLAP include landowner-s characteristics, cropland characteristics, as well as policy factors. Among them, the policy factors include afforestation subsidy amount (+), duration of afforestation subsidy (+), the rules on adjoining and adjacent areas (+), and so on, which do not reach the remarkable level in statistics though, but the directions of variable signs are consistent with the intuition behind the policy. As for the landowners- characteristics, each of age (+), education level (–), and annual household income (+) variables reaches 10% of the remarkable level in statistics; as for the cropland characteristics, each of cropland area (+), cropland price (–), and the number of cropland parcels (–) reaches 1% of the remarkable level in statistics. In light of the above, the cropland characteristics are the dominate factor that determines the probability of landowner-s participation in the PLAP. In the Logit model established by this paper, the probability of correctly estimating nonparticipants is 98%, the probability of correctly estimating the participants is 71.8%, and the probability for the overall estimation is 95%. In addition, Hosmer-Lemeshow test and omnibus test also revealed that the Logit model in this paper may provide fine goodness of fit and good predictive power in forecasting private landowners- participation in this program. The empirical result of this paper expects to help the implementation of the afforestation programs in Taiwan.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1084446Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1292
 R. J. Alig, K. J. Lee, and R. J. Moulton, "Likelihood of Timber Management on Nonindustrial Private Forests: Evidence from Research Studies," General Technical Report SE-60. Asheville, North Carolina: U.S. Department of Agriculture, Forest Service, Southeastern Forest Experiment Station Press, 17 p, 1990.
 C. S. Binkley, "Timber Supply from Nonindustrial Forests." Bull. No.92. New Haven, CT: Yale University, School of Forest and Environmental Studies Press, 97p, 1981.
 R. Boyd and W. Hyde, "Forestry Sector Intervention: The Impacts of Public Regulation on Social Welfare," Ames, IA: Iowa State University Press, 295p, 1989.
 F. W. Cubbage, "The Value of Foresters," Forest Landowner, vol. 62, no. 1, pp. 16-19, 2003.
 D.R. Cox and E.J. Snell, Analysis of Binary Data. 2nd Ed. London: Chapman and Hall Press, 1989.
 D. F. Dennis, "An Economic Analysis of Harvest Behavior: Integrating Forest and Ownership Characteristics," Forest Science, vol. 35, no. 4, pp. 1088-1104, 1989.
 B. C. English, C. D. Bell, G. R. Wells, and R. K. Roberts, "Stewardship Incentives in Forestry: Participation Factors in Tennessee," The Southern Journal of Applied Forestry, vol. 21, no. 1, pp. 5-10, 1997.
 C.A. Ervin and D. E. Ervin, "Factors Affecting the Use of Soil Conservation Practices: Hypotheses, Evidence, and Policy Implications," Land Economics, vol. 58, pp. 277-292, 1982.
 J. D. Esseks and R. J. Moulton, "Evaluating the Forest Stewardship Program through a National Survey of Participating Forestland Owners." DeKalb, IL: The Center for Governmental Studies, Social Science Research Institute, Northern Illinois University Press, 113p, 2000.
 A. L. Hammett, F. W. Cubbage, and W. G. Luppold, "A Logistic Regression Model of Southern Hardwood Lumber Export Participation," Wood and Fiber Science, vol. 24, no. 3, pp. 315-329, 1992.
 J. R. Hair, R. E. Anderson, R. L. Tatham and W. C. Black, Multivariate Data Analysis. 5th Ed., NJ: Prentice Hall Englewood Cliffs Press, 1998.
 I. W. Hardie and P. J. Parks, "Individual Choice and Regional Acreage Response to Cost-Sharing in the South, 1971-1981," Forest Science, vol. 37, no. 1, pp. 175-190, 1991.
 D. W. Hosmer and S. Lemeshow, Applied Logistic Regression. New York: John Wiley & Sons, Inc. Press, 1989.
 B. Hyberg and D. Holthausen, "The Behavior of Nonindustrial Private Forest landowners," Canadian Journal of Forest Research, vol. 19, pp. 1014-1023, 1989.
 P. F. Korsching, C. W. Stofferahn, P. J. Nowak, and D. Wagener, "Adoption Charateristics and Adoption Patterns of Minimum Tillage: Implication for Soil Conservation Program," Journal of Soil and Water Conservation, vol. 38, pp. 428-430, 1983.
 A. B. Lorenzo and P. Beard, "Factors Affecting the Decisions of NIPF Owners to Use Assistance Programs," in Proc. of Symp. on Non-Industrial Private Forests: Learning from the Past, Prospects for the Future, pp. 264-275, University of Minnesota, St Paul, MN, 1996.
 K. T. McNamara, M. E. Wetzstein, and G. K. Douce, "Factors Affecting Peanut Producer Adoption of Integrated Pest Management," Review of Agricultural Economics, vol. 13, no. 1, pp. 129-139, 1991.
 M. A. Megalos, "North Carolina Landowner Responsiveness to Forestry Incentives," Raleigh, NC: Ph.D. Dissertation, North Carolina State University Press, 119p, 2000.
 N. J. D. Nagelkerke, "Maximum Likelihood Estimation of Functional Relationships," Lecture Notes in Statistics, vol. 69, 110p, 1992.
 V. Nagubadi, "Private Landowner Forestry Program Participation Behavior," West Lafayette, IN: M.S. thesis, Pudue University Press, 1995.
 V. Nagubadi, K. T. McNamara, W. L. Hoover, and W. L. Miller, "Program Participation Behavior of Nonindustrial Forest Landowners: A Probit Analysis," Journal of Agricultural and Applied Economics, vol. 28, no. 2, pp. 323-336, 1996.
 T. L. Napier, C. S. Thraem, A. Gore, and W. R. Goe, "Factors Affecting Adoption of Conventional and Conservation Tillage Practices in Ohio." Journal of Soil and Water Conservation, vol. 38, pp. 205-205, 1984.
 M. R. Rahm and W. E. Huffman, "The Adoption of Reduced Tillage: The Role of Human Capital and Other Variables," American Journal of Agricultural Economics, vol. 66, pp. 405-413, 1984.
 J. Romm, R. Tuazon, and C. Washburn, "Relating Forestry Investment to the Characteristics of Nonindustrial Private Forestland Owners in Northern California," Forest Science, vol. 33, no. 1, pp. 197-209, 1987.
 J. Royer, "Determinants of Reforestation Behavior among Southern Landowners," Forest Science, vol. 33, no. 3, 654-667, 1987.
 E. O. Sills and K. L. Abt, Forests in a Market Economy. Kluwer Academic Publishers Press, 2003.
 T. H. Stevens, D. Dennis, D. Kittredge, and M. Rickenbach, "Attitudes and Preferences toward Co-operative Agreements for Management of Private Forestlands in the Northeastern United States," Journal of Environment Management, vol. 55, no. 2, pp. 81-90, 1999.
 D. Zhang and W. Flick, "Sticks, Carrots and Reforestation Investment." Land Economics, vol. 77, no. 3, pp. 443-456, 2001.