Who Should Own Indonesia's forests? Exploring the Links between Economic Incentives, Property Rights and Sustainable Forest Management
AbstractThe existing economic incentive regime was one main factor behind high deforestation rates in Indonesia. Government intervention to push for the expansion wood processing industries resulted in unsustainable resource use patterns. Uncertain tenurial arrangements and property rights, unenforceable contractual obligations and weak monitoring and enforcement by the government exacerbated the situation. Indonesia's existing forest management system does not provide efficient structures of control rights to any of the sector's many stakeholders. The lack of well-defined property rights has prevented various stakeholders from trading their control rights so as to improve the efficiency of the management. Future economic research on forestry issues in Indonesia could therefore highlight the importance of secure property and ownership rights in any strategies to implement sustainable forestry management.
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Bibliographic InfoPaper provided by Centre for Strategic and International Studies, Jakarta, Indonesia in its series CSIS Economics Working Paper Series with number WPE076.
Date of creation: Feb 2004
Date of revision:
Indonesia; forest management; property rights; incentive design;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-15 (All new papers)
- NEP-ENV-2004-02-15 (Environmental Economics)
- NEP-SEA-2004-02-15 (South East Asia)
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