Economic Analysis of Pro-poor Forestry

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This book provides an economic analysis of Leasehold Forestry (LHF), a new institutional innovation being practiced in the forestry sector in Nepal. LHF adopts a two pronged strategy of natural regeneration of degraded forests and improving livelihood, consequently reducing rural poverty through state granted property rights over forest lands to deserving poor families. This study has adopted a new methodology in the valuation of household time and forest biomass through interaction of demand and supply of labour under shallow labour market condition typical of rural agricultural economies. Using widely accepted tools of economics and econometrics, the study has analyzed the contribution of LHF on forest and household income, impact of LHF on various dimensions of poverty, institutional and policy determinants of LHF performance and various other dimensions of LHF. This study contributes to the literature on the institutional analysis of forest management aimed at livelihood improvement and alleviation of rural poverty. This study also sheds light on the complexities of natural resource management that are specifically targeted for the poor.