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

Published online by Cambridge University Press:  04 October 2005

ROBERT F. CONRAD ,
MALCOLM GILLIS  and
D. EVAN MERCER
ROBERT F. CONRAD
Affiliation:
Sanford Institute of Public Policy, Duke University, Durham, NC 27708
MALCOLM GILLIS
Affiliation:
Rice University, Houston, TX 77005
D. EVAN MERCER
Affiliation:
USDA Forest Service, Southern Research Station, Research Triangle Park, NC 27709
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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.

Type
Research Article
Information
Environment and Development Economics , Volume 10 , Issue 5 , October 2005 , pp. 689 - 709
Copyright
2005 Cambridge University Press

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Footnotes

We would like to thank two anonymous referee and the editor for many helpful comments and corrections. The ususal disclaimer applies.