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Voluntary Environmental Action and Export Destinations: The Case of Forest Certification

  • Moeltner, Klaus
  • van Kooten, G. Cornelis

There 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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File URL: http://purl.umn.edu/31100
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 28 (2003)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:jlaare:31100
Contact details of provider: Web page: http://waeaonline.org/

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  1. Cashore, Benjamin & van Kooten, G. Cornelis & Vertinsky, Ilan & Auld, Graeme & Affolderbach, Julia, 2005. "Private or self-regulation? A comparative study of forest certification choices in Canada, the United States and Germany," Forest Policy and Economics, Elsevier, vol. 7(1), pages 53-69, January.
  2. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
  3. Sedjo, Roger & Swallow, Stephen, 1999. "Eco-Labeling and the Price Premium," Discussion Papers dp-00-04, Resources For the Future.
  4. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
  5. Johnston, Robert J. & Roheim, Cathy A. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
  6. van Kooten, G. Cornelis & Nelson, Harry W. & Vertinsky, Ilan, 2005. "Certification of sustainable forest management practices: a global perspective on why countries certify," Forest Policy and Economics, Elsevier, vol. 7(6), pages 857-867, November.
  7. Madhu Khanna & William Rose Q. Anton, 2002. "Corporate Environmental Management: Regulatory and Market-Based Incentives," Land Economics, University of Wisconsin Press, vol. 78(4), pages 539-558.
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