Scandinavian Working Papers in Economics

EfD Discussion Paper,
Environment for Development, University of Gothenburg

No 25-6: Devolution and Sustainable Management of Forests in Developing Countries: Quasi-experimental Evidence from Household Level Data in Ethiopia

Zenebe Gebreegziabher (), Abebe D. Beyene (), Randall Bluffstone (), Berhanu Gebremedhin () and Alemu Mekonnen ()
Additional contact information
Zenebe Gebreegziabher: Department of Economics Mekelle University, Mekelle, Tigrai, Ethiopia
Abebe D. Beyene: Environment and Climate Research Center (ECRC), Policy Studies Institute (PSI), Addis Ababa, Ethiopia
Randall Bluffstone: Department of Economics, Portland State University, Portland, Oregon, USA
Berhanu Gebremedhin: University of Dallas, Irving, Texas, USA
Alemu Mekonnen: Department of Economics, Addis Ababa University, Addis Ababa, Ethiopia

Abstract: This research aims to evaluate the role that devolution of forest tenure rights plays in the sustainable management of forests in developing countries at a highly disaggregated level, using data from a sample of 600 households in four major regions of Ethiopia. Specifically, the study investigates the impacts of the devolution of forest tenure rights towards local communities on forest quality and livelihoods empirically, employing a quasi-experimental approach comparing households that are members of forest user groups (FUGs) and households that are not. The study uses four outcome variables as measurable indicators to empirically analyze the impacts of the devolution and its contributions to improvements in the livelihoods of forest dwellers. The results suggest that FUGs had a robust and positive impact on the harvest of various forest products. These findings contribute to the literature on devolution and highlight implications for research, policy, and development practice with respect to forest commons.

Keywords: institutions; common property forest management; matching; inverse probability weights; Ethiopia

JEL-codes: Q23; Q54

Language: English

44 pages, July 1, 2025

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