Browse
You are looking at 1 - 1 of 1 items for :
- IMF Staff Papers x
- Financial and monetary sector x
- Taxation x
- Indonesia x
- International Economics x
- Technology x
- General Financial Markets: General (includes Measurement and Data) x
- Industry and industrial studies x
- International organization x
- Fiscal sector x
- Cross-cutting issues x
- Renewable Resources and Conservation: Forestry x
- Bonds x
This paper examines the role and impact of taxation on sustainable forest management. It is shown that fiscal instruments neither reinforce nor substitute for traditional regulatory approaches and can actually undermine sustainability. The paper uses the reasoning at the root of the Faustmann solution to draw conclusions on the incentives for sustainable tropical forest exploitation. It proposes a bond mechanism as an alternative market-based instrument to encourage sustainable forest logging while reducing monitoring costs.