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

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  • Moeltner, Klaus
  • van Kooten, G. Cornelis

Abstract

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.

Suggested Citation

  • Moeltner, Klaus & van Kooten, G. Cornelis, 2003. "Voluntary Environmental Action and Export Destinations: The Case of Forest Certification," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-14.
    • Handle: RePEc:ags:jlaare:31100
    DOI: 10.22004/ag.econ.31100
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    References listed on IDEAS

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    Cited by:

    1. Mälkönen, Ville, 2006. "Optimal forest conservation: The role of green-image demand and investments," Journal of Forest Economics, Elsevier, vol. 12(1), pages 51-73, March.

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