Government leadership and grassroots participation are the most typical institutional arrangements in natural resource management, a topic which has been the subject of vigorous debate for a long time. Individually, these systems are referred to as scientization and parametrization. This paper takes the reform of China's state-owned forest farms (SSFs) as a pointcut, comparing the effects of the 2011 policy (representing scientization) and the 2015 policy (representing parametrization) on environmental conservation. For the period from 2006 to 2018, China's provinces are analyzed via difference-in-differences (DID) and principal components difference-in-differences (PCDID) empirical strategies. The results show that the 2015 policy increased new afforestation by an average of 0.903 units, but the 2011 policy had no significant impact. The influence path of the 2015 policy was to curb corruption, relieve fiscal stress, and stimulate innovation, playing mechanism effects of 20.49%, 14.17%, and 33.55%, respectively. However, the 2015 policy was not ideal in terms of its goal of incentivizing multi-agent participation in investments in conservation. Investors prefer to attempt afforestation projects with shorter payback periods, especially projects related to open forest land. Overall, this study supports the belief that parametric management is a better approach to natural resource management than scientific management, but the latter approach still has limitations. Therefore, we propose to prioritize the promotion of parametric management on the closed forest lands of SSFs, but there is no need to hastily mobilize grassroots participation in open forest land management projects.
Read full abstract