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Property Rights and Deforestation: The Choice of Fuelwood Source in Rural Viet Nam

This paper analyses the choice of fuelwood supply sources in rural Viet Nam, of which one, the open-access area, is subjected to deforestation. A random parameter logit estimation allows us to calculate cross elasticities between the various sources, using derived shadow prices for fuelwood from each source. We find a relatively stronger substitution effect emerging between user-right plantation and open-access areas. This implies that a policy intervention of fuel from plantations might be an efficient option to halt deforestation. Analysis of producer surplus measures explains the reluctance by households to accept managerial responsibilities of open-access areas. (JEL D23, Q23)