Managing Tropical Forests: Reflections on the Rent Distribution Discussion
Commercial forest extraction is one component of the tropical deforestation issue. Discussions about commercial extraction focus on choices among alternate rents and royalties. These discussions often confuse measures of short- and long-run efficiency and equate distributive issues with efficiency. They also overlook (1) potential lump sum charges, (2) administrative costs, and (3) previous public forestry agency experience. This paper develops a simple analytical construct for clarifying these issues and examines each in turn.
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