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Abstract

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.

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