Forest property rights within community forests and their role in enhancing economic well-being in rural Ethiopia

Abstract

This study examines the distribution of forest property rights and their impact on the economic well-being of community forest users in rural Ethiopia. Addressing a critical gap in the literature, the research explores the differentiated effects of operational-level and collective-choice rights on financial gains within community-based forest management (CBFM). Primary data from 365 community forest users were analyzed using OLS, Quantile, and IV regression methods. The findings reveal that community forest users exercise moderate operational rights but perceive significant restrictions on their collective-choice rights. Women and marginalized groups report particularly lower security regarding these rights. Econometric analyses indicate that specific rights—such as access, management, and alienation rights—significantly influence income from community forests. Additionally, both operational and collective-choice rights are found to positively affect income at the aggregate level, underscoring the importance of secure forest property rights. However, the results also highlight notable disparities in the impact of property rights. Households with a male head, small forests, and those with high forest dependence experience greater benefits from secure rights. Moreover, access to private forest plots consistently reduces the benefits derived from community forests, suggesting lower investment efforts in communal forest resources by private forest owners. The study underscores the need to strengthen forest property rights, implement targeted interventions, and promote integrated land-use practices to enhance the economic, social, and environmental outcomes of community forests in Ethiopia and similar contexts.