Which Information Feedback Approach Is Beneficial to Improve the Supply of Quasi-Public Forestry Infrastructure? An Experimental Economics Approach

Abstract

Forestry infrastructure plays a critical role in promoting tree growth to achieve carbon-neutral targets. However, as a quasi-public good, it faces challenges because of its non-excludability, meaning that everyone can use it whether they pay for it or not, which results in a phenomenon known as ‘free-riding’ and poor supply. In China, the government can regulate the supply behaviour by adjusting information feedback approaches, such as disclosing the supply value and revenue. This study examined three information feedback approaches: full feedback (disclosing supply and revenue), half feedback (disclosing only supply), and no feedback (no disclosure). It then combined these three information feedback methods with other three groups of variables, namely whether there was a reward or punishment mechanism, whether the return rate of forestry infrastructure was certain, and whether the foresters could communicate with each other, and 20 policy scenarios were designed. Using experimental economics, foresters’ supply behaviours in these policy scenarios were simulated. The results revealed that: (1) The scenario yielded the highest supply, which is with half feedback, certain return rate of forestry infrastructure, with a reward or punishment mechanism, and no communication. (2) When there is no reward or punishment mechanism, no communication, and the return rate of forestry infrastructure is certain, no feedback increases the supply. In the presence of rewards and punishments, half feedback leads to the highest supply. If there are no rewards or punishments but with a certain return rate and communication, full feedback results in the highest supply. (3) Implementing a reward or punishment mechanism and information feedback simultaneously increases the supply more effectively. The theoretical analysis and policy recommendations of this study aim to improve the supply status of forestry infrastructure.