The Effect of Receiving Forestry Subsidies on Forestry Income and Economic Surplus of Forestry Household

Abstract

In this paper, the effect of receiving various forestry subsidies on the forestry income and economic surplus of forestry households is evaluated using the Propensity Score Matching(PSM) method. The results indicate that the four types of forestry subsidies, which are public, small-scale, and two individual small-scale support programs, have positive effects on both the forestry income and economic surplus of forestry households. The effects of the two individual small-scale support programs are estimated to outweigh the effects of small-scale support programs on forestry income and economic surplus. It can be interpreted that the support program of eco-friendly forest product cultivation management, which is a fertilizer support program, have a large marginal effect that can have a direct effect on crop production. Unlike the support program of infrastructure construction that has a long-term effect, the effect of the support program of forest product commercialization is analyzed to be evident in the short term.