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The Complier Pays Principle

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Author Info

  • Luc E. Leruth
  • R. Paris
  • I. Ruzicka
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    Abstract

    This paper examines the role and impact of taxation on sustainable forest management. It is shown that fiscal instruments neither reinforce nor substitute for traditional regulatory approaches. Far from encouraging more sustainable forest management, fiscal instruments such as an inappropriate tax policy can actually undermine it. The paper uses the arguments at the root of the Faustmann solution to draw conclusions on the incentives for sustainable tropical forest exploitation. The paper also proposes a bond mechanism as an alternative market-based instrument to encourage sustainable forest logging while reducing monitoring costs.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=3490
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/51.

    as in new window
    Length: 28
    Date of creation: 01 Mar 2000
    Date of revision:
    Handle: RePEc:imf:imfwpa:00/51

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    Related research

    Keywords: Environment; forest; forest management; environmental damage; forests; sustainable forest management; natural forests; timber prices; soil erosion; forest degradation; environmental cost; forest health; forest leases; forest depletion; forest resources; industrial pollution; forest productivity; forest logging; environmental intelligence; forest policy; environmental benefits; sustainable forestry; forest land; natural resource management; timber taxation; forestry management; natural resources; forest concession; environmental taxes; forest conservation; marginal environmental cost; environmental degradation; concession management; environmental management; tropical forestry; land improvement; areas of forest; forest concessions; timber production; environmental services; timber sales; environmental economics; forestry sector; forest exploitation; forest operations; environmental policy; environmental incentive; forest harvesting; state forestry; area of forest; forest taxation; degraded forests; tropical forests; commercial timber exploitation; concession policies; forest managers; forest regulation; forest environments; environmental consequences; environmental impacts; environmental taxation; forest biodiversity; forest manager; environmentally sensitive areas; biodiversity conservation; environmentally sensitive; timber species; forest stock; forest administration; environmental economists; environmentally harmful ? technology; forest authorities; forest destruction; timber industry; environmental side effects;

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