Korea Agricultural Economics Association

Title The Effect of Receiving Forestry Subsidies on Forestry Income and Economic Surplus of Forestry Household
Author Heesun Lim, Kyungsoo Nam, Byeong-il Ahn
Paper Information Vol.62 No.3 (2021-9) Page 155~175
File KJAE(2021-Vol62No03)-English-01.pdf
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.