IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v13y2011i8p630-641.html
   My bibliography  Save this article

The political economy of timber taxation: The case of Ghana

Author

Listed:
  • Hansen, Christian P.
  • Lund, Jens F.

Abstract

We analyze the political economy of timber taxation in Ghana. Our results show that politicians maintain control over allocation of timber rights, that taxation constitutes an insignificant share of the value of the timber resource, and that the distribution of timber revenues hardly contributes towards the official forest policy justifications. Our analysis suggests that politicians wield control over rent-seeking opportunities that are exchanged for political support through patron-client networks. This speaks to a larger literature on why governments waste resources and constitutes an argument for increased attention to the political economy underlying natural resource policies.

Suggested Citation

  • Hansen, Christian P. & Lund, Jens F., 2011. "The political economy of timber taxation: The case of Ghana," Forest Policy and Economics, Elsevier, vol. 13(8), pages 630-641, October.
  • Handle: RePEc:eee:forpol:v:13:y:2011:i:8:p:630-641
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S138993411100092X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mr. Saji Thomas & Mr. Arnim Schwidrowski, 2005. "Forestry Taxation in Africa: The Case of Liberia," IMF Working Papers 2005/156, International Monetary Fund.
    2. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    3. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    4. Kolstad, Ivar & Søreide, Tina, 2009. "Corruption in natural resource management: Implications for policy makers," Resources Policy, Elsevier, vol. 34(4), pages 214-226, December.
    5. Amacher, Gregory S., 2006. "Corruption: A challenge for economists interested in forest policy design," Journal of Forest Economics, Elsevier, vol. 12(2), pages 85-89, June.
    6. Grindle,Merilee S., 1989. "The new political economy : positive economics and negative politics," Policy Research Working Paper Series 304, The World Bank.
    7. repec:cup:cbooks:9780521636476 is not listed on IDEAS
    8. Gregory S. Amacher, 1999. "Government Preferences and Public Forest Harvesting: A Second-Best Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 14-28.
    9. Kim, Sophanarith & Phat, Nophea Kim & Koike, Masao & Hayashi, Hiromichi, 2006. "Estimating actual and potential government revenues from timber harvesting in Cambodia," Forest Policy and Economics, Elsevier, vol. 8(6), pages 625-635, August.
    10. John A. Gray, 2002. "Forest Concession Policies and Revenue Systems : Country Experience and Policy Changes for Sustainable Tropical Forestry," World Bank Publications - Books, The World Bank Group, number 14094, December.
    11. Kolstad, Ivar & Wiig, Arne, 2009. "It's the rents, stupid! The political economy of the resource curse," Energy Policy, Elsevier, vol. 37(12), pages 5317-5325, December.
    12. Grut, M. & Gray, J.A. & Egli, N., 1991. "Forest pricing and concession policies: managing the high forest of west and central Africa," Papers 143, World Bank - Technical Papers.
    13. Jared J. Hardner & Richard Rice, 1999. "Rethinking Forest Resource Use Contracts in Latin America," IDB Publications (Working Papers) 25578, Inter-American Development Bank.
    14. Jeffrey R. Vincent, 1990. "Rent Capture and the Feasibility of Tropical Forest Management," Land Economics, University of Wisconsin Press, vol. 66(2), pages 212-223.
    15. repec:cup:cbooks:9780521631570 is not listed on IDEAS
    16. Gregory Amacher & Erkki Koskela & Markku Ollikainen, 2007. "Royalty reform and illegal reporting of harvest volumes under alternative penalty schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(2), pages 189-211, October.
    17. Grut, M. & Gray, J.A. & Egli, N., 1991. "Forest pricing and concession policies: managing the high forest of west and central Africa," Papers 139a, World Bank - Technical Papers.
    18. מחקר - ביטוח לאומי, 2006. "Summary for 2005," Working Papers 29, National Insurance Institute of Israel.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pouliot, Mariève & Treue, Thorsten, 2013. "Rural People’s Reliance on Forests and the Non-Forest Environment in West Africa: Evidence from Ghana and Burkina Faso," World Development, Elsevier, vol. 43(C), pages 180-193.
    2. Carlsen, Kirsten & Hansen, Christian Pilegaard & Lund, Jens Friis, 2012. "Factors affecting certification uptake — Perspectives from the timber industry in Ghana," Forest Policy and Economics, Elsevier, vol. 25(C), pages 83-92.
    3. Hansen, Christian P. & Rutt, Rebecca & Acheampong, Emmanuel, 2018. "‘Experimental’ or business as usual? Implementing the European Union Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreement in Ghana," Forest Policy and Economics, Elsevier, vol. 96(C), pages 75-82.
    4. Ameyaw, Joana & Arts, Bas & Wals, Arjen, 2016. "Challenges to responsible forest governance in Ghana and its implications for professional education," Forest Policy and Economics, Elsevier, vol. 62(C), pages 78-87.
    5. Hajjar, Reem, 2015. "Advancing small-scale forestry under FLEGT and REDD in Ghana," Forest Policy and Economics, Elsevier, vol. 58(C), pages 12-20.
    6. Ramcilovic-Suominen, Sabaheta & Epstein, Graham, 2015. "The impacts of deterrence, social norms and legitimacy on forest rule compliance in Ghana," Forest Policy and Economics, Elsevier, vol. 55(C), pages 10-20.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Yogesh Uppal, 2011. "Does legislative turnover adversely affect state expenditure policy? Evidence from Indian state elections," Public Choice, Springer, vol. 147(1), pages 189-207, April.
    6. Andersson, Thomas, 1997. "The Tropical Forests as a Global Resource: Impacts of Trade-Related Policy," SSE/EFI Working Paper Series in Economics and Finance 187, Stockholm School of Economics, revised 01 Nov 1997.
    7. Giuseppe Dari-Mattiacci & Eric Langlais & Bruno Lovat & Francesco Parisi, 2007. "Crowding-out in productive and redistributive rent-seeking," Public Choice, Springer, vol. 133(1), pages 199-229, October.
    8. Laurent Debroux & Giuseppe Topa & David Kaimowitz & Alain Karsenty & Terese Hart & Awono Abdon & Fidele Amsini & Conrad Aveling & Alain Bertrand & Mohammed Bekhechi & Carlo Bravi & Eric Chezeaux & Ken, 2007. "Forests in Post- Conflict Democratic Republic of Congo: Analysis of a Priority Agenda," Selected Books, CIRAD, Forest department, UPR40, edition 1, volume 1, number 10.
    9. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Socially Optimal Royalty Design and Illegal Logging under Alternative Penalty Schemes," CESifo Working Paper Series 1131, CESifo.
    10. Kolstad, Ivar & Wiig, Arne, 2012. "Testing The Pearl Hypothesis: Natural resources and trust," Resources Policy, Elsevier, vol. 37(3), pages 358-367.
    11. Baena, César & Sévi, Benoît & Warrack, Allan, 2012. "Funds from non-renewable energy resources: Policy lessons from Alaska and Alberta," Energy Policy, Elsevier, vol. 51(C), pages 569-577.
    12. Thiele, Rainer & Wiebelt, Manfred, 1996. "Tropenwaldmanagement: Ein Balanceakt zwischen Schutz und Raubbau," Kiel Discussion Papers 282, Kiel Institute for the World Economy (IfW Kiel).
    13. Christopher Costello & Nicolas Querou & Agnès Tomini, 2014. "Spatial concessions with limited tenure," Post-Print hal-01123392, HAL.
    14. Ruba A. Aljarallah & Andrew Angus, 2020. "Dilemma of Natural Resource Abundance: A Case Study of Kuwait," SAGE Open, , vol. 10(1), pages 21582440198, January.
    15. Cashore, Benjamin & Nathan, Iben, 2020. "Can finance and market driven (FMD) interventions make “weak states” stronger? Lessons from the good governance norm complex in Cambodia," Ecological Economics, Elsevier, vol. 177(C).
    16. Thiele, Rainer, 1993. "Public policies and deforestation in Indonesia," Kiel Working Papers 605, Kiel Institute for the World Economy (IfW Kiel).
    17. Mohammad Abdul Munim Joarder & Monir Uddin Ahmed, 2023. "Does natural resource abundance breed corruption? The role of political institutions," SN Business & Economics, Springer, vol. 3(9), pages 1-43, September.
    18. Divya Datt, 2016. "Inter-governmental political relations in a federation and illegal mining of natural resources," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(4), pages 557-576, October.
    19. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, University Library of Munich, Germany.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:13:y:2011:i:8:p:630-641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.