Evaluation of the Impact of the Natural Forest Protection Program on Rural Household Livelihoods

In this study, we estimated the impact on local household livelihoods of the Natural Forest Protection Program (NFPP), which is the largest logging-ban program in the world, which aims to protect watersheds and conserve natural forests. In doing so, we used a series of microeconometric policy-evaluation techniques to assess the impacts of the NFPP on two interrelated facets of household livelihoods: income and off-farm labor supply. We found that the NFPP has had a negative impact on incomes from timber harvesting but has actually had a positive impact on total household incomes from all sources. Furthermore, we found that off-farm labor supply outside the village has increased more rapidly in NFPP than in non-NFPP areas. Based on these results, policy implications for household livelihoods were drawn and are presented herein.