With increasing domestic energy use, increasing CO2 emissions, an increasing search for alternative energy sources in China, and rural energy production has positive effects on poverty alleviation and income generation. Moreover, because of the grain self-sufficiency pressure, Chinese central government prohibited energy crops on arable land. Thus forest-based energy crops plantation thought to be a promising alternatives without competing with arable land.
During the implementation of Forest-based energy crops plantation, there problems are concerning. First of all, unclear property rights conflict with long-term investment. Secondly, as projects are large-scale, how to involve several villages and households as well as multiple governmental scales faces many barriers. Last but not least, informal collective institutions for local forest management are various and not well known in their way of functioning.
The objective of this project is to analyze the determinants of large-scale forest-based energy crops plantation employing different institutional levels. More specifically, how far may different macro-scale institutional arrangements and their multi-level implementation influence the success of Forest-based Energy Crops Plantations? Then, this research tries to distinguish different village schemes for the implementation of Forest-based Energy Crops Plantations, and analyze how they affect their success. Finally, the quantitative analyses on factors affect the household participation incentives as well as their investment strategies are taken.