Voluntary Environmental Action and Export Destinations: The Case of Forest Certification
AbstractThere is an increasing tendency for forest product firms worldwide to adopt sound environmental management practices by voluntarily agreeing to have their forest practices certified by third parties. Using a simple model of profit maximization, we illustrate that the puzzling emergence of this non-state, self-imposed governance structure is compatible with firms' profit motives. An empirical model using firm data from three countries shows firm location and export destinations play a key role in firms' decisions to seek certification, while the nature of forestland ownership has no significant impact on certification decisions.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 28 (2003)
Issue (Month): 02 (August)
export markets; forest certification; profit maximization; discrete choice models; Environmental Economics and Policy;
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