Has China's new round of collective forest reforms caused an increase in the use of productive forest inputs?

Forestland tenure and financial incentives are the most important policy issue to sustainable forest resource management. The new wave of reform of collective forestland tenure (NRCFT) has been launched since 2003 and the governmental matching reform measures (MRMs) for the NRCFT have been introduced since 2009. The objective of these reforms is to enhance sustainable forest resource management in Chinese collective regions by encouraging rural households' productive forest inputs. We use a unique dataset of 1778 sample households in 18 counties of nine provinces with six years and employ a fixed effects model with clustered standard errors. Our empirical results indicate that: 1) the NRCFT has increased households' forestland area of different tenure types, and the effects of the MRMs on rural households' labor input and production expenditures for forestry purposes are generally positive, especially household used forestland as collateral for a loan and afforestation or reafforestation subsidy and reform of Annual Allowance Cut (AAC) have significantly contributed to increase in the use of productive forest inputs; 2) the NRCFT and the MRMs have different impacts on the use of productive forest inputs for different tenure forests, and these reforms have caused the most significant changes in rural households' production decision changes for household responsibility forestland; 3) both the NRCFT and the MRMs have significant effects on rural households' rent-in and rent-out forestland; and 4) forestland fragmentations have caused additional labor and investment inputs for rural households' forest resource management and protection. And finally, market drivers and household and village characteristics factors also affect households' decisions for productive inputs for their managing forests.