2010 Volume 3 Issue 2 Pages 13-25
In this paper, we analyze the feasibility of an economic incentive policy designed to enhance forest owners’ willingness to conserve forests independently by paying compensation for forest conservation as an incentive for forest conservation, in order to reduce CO2 emissions from deforestation caused by the liberalization of trade in forest products. The analysis shows that the economic incentive policy is a more cost-effective method than certain other methods for reducing atmospheric CO2. The economic incentive policy also has the following advantages: not incurring the sort of monitoring costs associated with direct regulation for forest conservation, not squeezing forest owners’ incomes, and enabling the countries subject to distribution of forest conservation incentives to be specified. Consequently, the policy appears to have high feasibility.