Ecological Effects of Forest Tenure Reform in Southern China: An Institutional Change Perspective

ABSTRACT The forest tenure reform plays a crucial role in the sustainable development of forest areas. It secures people's livelihoods and fosters the continuous growth of forest resources, generating substantial ecological effects. However, a systematic evaluation of the ecological effects of forest tenure reform remains absent. Here, we utilize remote sensing data from forest areas in southern China spanning 1998–2022 and employ a staggered Difference‐in‐Differences (DID) alongside an event study model to assess the ecological effects of forest tenure reform. Specifically, we examine the effects of the devolution of forest tenure reform (DFTR) and the improvement of forest tenure reform (IFTR). Our findings reveal that DFTR significantly promoted the short‐term recovery of forest ecosystems. During the IFTR stage, forest ecological benefits have been effectively maintained through policies that harmonize private interests, economic factors, and ecological considerations. Mechanism analysis indicates that changes in the forest tenure system have shifted the focus of forest management from timber production toward multifunctional uses, including ecological conservation, recreational services, and understory cultivation. Heterogeneity analysis further reveals that during the DFTR stage, counties in important river basins and with high levels of agricultural mechanization experienced stronger ecological impacts from the policy. In contrast, these regions exhibited significant negative effects in the IFTR stage. To address these challenges, future policy reforms should prioritize scientific adjustments to the utilization of ecological public welfare forests, expansion of forest ecosystem payment mechanisms, development of innovative forestry technology services, and the promotion of large‐scale forestry management. Our findings provide valuable insights for further advancing forest tenure reform.