Forestry Subsidies, Forestry Regulatory Policies, and Total Factor Productivity in Forestry—Plot-Scale Micro-Survey Data from A Heterogeneous Forest Types Perspective

Abstract

Enhancing the total factor productivity in forestry is an important part of deepening the reform of the collective forest rights system. Based on the survey data of 295 forest plots in 12 towns of Liuyang City, Hunan Province, China, the study utilized a three-stage DEA model to assess the total factor productivity of forestry at the plot level. The empirical study employs Tobit and fractional regression models to investigate the effects and differences of forestry subsidies and forestry regulatory policies on the heterogeneous total factor productivity of different types of forests. The study found that: (1) the mean value of plot-scale forestry total factor productivity is 0.127, and there are obvious differences in total factor productivity among timber forests, economic forests, and mixed forests; and (2) afforestation subsidies and nurturing subsidies significantly positively influence high-level TFP. Ecological benefit compensation positively affects high-level TFP, but is not significant at any level of TFP. Forestry regulatory policies negatively impact high-level TFP, but are not significant at any level of TFP. This paper puts forward countermeasure suggestions to improve forestry subsidy policies, optimize forestry regulatory policies, and improve forestry total factor productivity from the perspective of heterogeneous forest types.