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Promoting Better Logging Practices in Tropical Forests: A Simulation Analysis of Alternative Regulations

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  • Marco Boscolo
  • Jeffrey R. Vincent

Abstract

Standard recommendation for improving logging practices in tropical forests include lengthening concession agreements making concessions renewable, and requiring concessionaires to deposit performance bonds. In this paper we investigate the likely effectiveness of these recommendations by using a simulation model of a Malaysian rainforest. We focus on two classes of decisions faced by loggers: which logging technology to adopt and whether or not to comply with prescribed diameter cutting limits. We predict the impact of alternative regulations on these decisions and on the resulting economic and environmental outcomes. Renewability conditions and performance bonds emerge as potent instruments for improving logger behavior.

Suggested Citation

  • Marco Boscolo & Jeffrey R. Vincent, 2000. "Promoting Better Logging Practices in Tropical Forests: A Simulation Analysis of Alternative Regulations," Land Economics, University of Wisconsin Press, vol. 76(1), pages 1-14.
    • Handle: RePEc:uwp:landec:v:76:y:2000:i:1:p:1-14
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    Cited by:

    1. Christopher Costello & Corbett A. Grainger, 2018. "Property Rights, Regulatory Capture, and Exploitation of Natural Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 441-479.
    2. Amacher, Gregory S. & Malik, Arun S. & Haight, Robert G., 2005. "Nonindustrial private landowners, fires, and the wildland-urban interface," Forest Policy and Economics, Elsevier, vol. 7(5), pages 796-805, August.
    3. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Deforestation, Production Intensity and Land Use under Insecure Property Rights," CESifo Working Paper Series 1128, CESifo.
    4. Karsenty, Alain, 2002. "Le rôle controversé de la fiscalité forestière dans la gestion des forêts tropicales - L’état du débat et les perspectives en Afrique centrale," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 64.
    5. Indrajaya, Yonky & van der Werf, Edwin & Weikard, Hans-Peter & Mohren, Frits & van Ierland, Ekko C., 2016. "The potential of REDD+ for carbon sequestration in tropical forests: Supply curves for carbon storage for Kalimantan, Indonesia," Forest Policy and Economics, Elsevier, vol. 71(C), pages 1-10.
    6. Castellanos, Yuli & Renau, Jorge Marco, 2023. "A Bioeconomic Approach to Sustainable Forest Management in the Colombian Amazon," EfD Discussion Paper 23-13, Environment for Development, University of Gothenburg.
    7. Budy Resosudarmo & Arief Anshory Yusuf & Ditya A. Nurdianto, 2012. "Preliminary Analysis of REDD on Indonesian's Economy," Working Papers in Economics and Development Studies (WoPEDS) 201204, Department of Economics, Padjadjaran University, revised Dec 2012.
    8. Southgate, Douglas & Salazar-Canelos, Pablo & Camacho-Saa, Carlos & Stewart, Rigoberto, 2000. "Markets, Institutions, and Forestry: The Consequences of Timber Trade Liberalization in Ecuador," World Development, Elsevier, vol. 28(11), pages 2005-2012, November.
    9. Boscolo, Marco & Vincent, Jeffrey R., 2003. "Nonconvexities in the production of timber, biodiversity, and carbon sequestration," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 251-268, September.
    10. Christopher Costello & Nicolas Querou & Agnès Tomini, 2014. "Spatial concessions with limited tenure," Post-Print hal-01123392, HAL.
    11. Marco Boscolo, 2000. "Multiple Use Management of Tropical Forests: On the Superiority of Land Use Specialization," CID Working Papers 41, Center for International Development at Harvard University.
    12. Nalin Kishor & Muthukumara Mani & Luis Constantino, 2004. "Economic and Environmental Benefits of Eliminating Log Export Bans – The Case of Costa Rica," The World Economy, Wiley Blackwell, vol. 27(4), pages 609-624, April.
    13. Li, Yanshu & Mei, Bin & Linhares-Juvenal, Thaís, 2019. "The economic contribution of the world's forest sector," Forest Policy and Economics, Elsevier, vol. 100(C), pages 236-253.
    14. Yonky Indrajaya & Edwin van der Werf & Ekko van Ierland & Frits Mohren, 2014. "Optimal Forest Management when Logging Damages and Costs Differ between Logging Practices," CESifo Working Paper Series 4606, CESifo.
    15. Kuusela, O.P. & Amacher, G.S. & Moeltner, K., 23. "Performance Bonds in Tropical Timber Concessions: Encouraging the Adoption of Reduced Impact Logging Techniques," Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, Scandinavian Society of Forest Economics, issue 44, May.
    16. Alain Karsenty, 2002. "Le rôle controversé de la fiscalité forestière dans la gestion des forêts tropicales - L’état du débat et les perspectives en Afrique centrale," Post-Print hal-01200967, HAL.
    17. Amacher, Gregory S. & Ollikainen, Markku & Koskela, Erkki, 2012. "Corruption and forest concessions," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 92-104.
    18. Alain Karsenty, 2002. "Le rôle controversé de la fiscalité forestière dans la gestion des forêts tropicales - L’état du débat et les perspectives en Afrique centrale," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 64, pages 5-36.
    19. Alix-Garcia, Jennifer, 2007. "A spatial analysis of common property deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 141-157, March.
    20. Alexander J. Macpherson & Douglas R. Carter & Marco W. Lentini & Mark D. Schulze, 2010. "Following the Rules: Brazilian Logging Concessions under Imperfect Enforcement and Royalties," Land Economics, University of Wisconsin Press, vol. 86(3).
    21. Costello, Christopher J. & Kaffine, Daniel, 2008. "Natural resource use with limited-tenure property rights," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 20-36, January.
    22. Hilder André Bezerra Farias & Sérgio Luiz de Medeiros Rivero & Márcia Jucá Teixeira Diniz, 2017. "Negative incentives and sustainability in the amazonian logging industry [Negative incentives and sustainability in the amazonian logging industry]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 27(3), pages 363-391, September.
    23. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
    24. Kuusela, Olli-Pekka & Amacher, Gregory S. & Moeltner, Klaus, 2017. "Enforcing the rules in timber concessions: Performance bonding in the presence of corruption risk," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 52-64.

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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