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Tropical forest harvesting and taxation: a dynamic model of harvesting behavior under selective extraction systems

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  • CONRAD, ROBERT F.
  • GILLIS, MALCOLM
  • MERCER, D. EVAN

Abstract

A dynamic model of selective harvesting in multi-species, multi-age tropical forests is developed. Forests are predicted to exhibit different optimal harvesting profiles depending on the nature of their joint cost functions and own or cross-species stock effects. The model is applied to the controversy about incentives produced by various taxes. The impacts of specific taxes are shown to depend on the composition of the forest stocks, growth rates, and joint cost effects. Therefore, specific taxes may create different incentives and impacts in Indonesia than in Brazil or Malaysia, for example, suggesting that no single uniform forest tax policy will be appropriate for all countries or all forests.

Suggested Citation

  • Conrad, Robert F. & Gillis, Malcolm & Mercer, D. Evan, 2005. "Tropical forest harvesting and taxation: a dynamic model of harvesting behavior under selective extraction systems," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 689-709, October.
    • Handle: RePEc:cup:endeec:v:10:y:2005:i:05:p:689-709_00
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    Cited by:

    1. 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).
    2. 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.

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