Following the Rules: Brazilian Logging Concessions under Imperfect Enforcement and Royalties

Alexander J. Macpherson, Douglas R. Carter, Marco W. Lentini and Mark D. Schulze


Debates about forest concessions in the Brazilian Amazon have focused on the government’s enforcement capacity. Using an optimization model largely parameterized with data from the Eastern Amazon, we investigate the effectiveness of renewability audits and performance bonds in inducing compliance with reduced-impact logging and harvest volume requirements. In weak enforcement environments, audits are unlikely to induce full compliance with harvest regulations, while performance bonds may be more effective. The use of royalty instruments such as the ad valorem and revenue-based royalties can generate revenues and, in the case of revenue-based instruments, modify harvest behavior, but only under limited circumstances. (JEL Q23, Q28)

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.