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Economic incentives exist to support measures to reduce illegal logging

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Three studies of the global economic implications of eliminating illegal logging are summarized. Processors of illegally sourced wood would lose from the elimination of illegal logging through high prices for logs and decreased production of wood products. Associated with these changes could be losses in employment and income. Beyond these losses to the processing industry, eliminating illegal logging has positive effects on sustainable forestry practices, and economic, environmental and social values in countries with illegal logging. The effects of illegal logging also extend beyond the countries in which illegal logging occurs. In almost all countries without illegal harvests the elimination of illegal logging is predicted to lead to significant increases in the price and production of wood products. This suggests that an economic incentive exists for legitimate producers in all countries to support measures to reduce illegal logging.
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Keywords: illegal logging; international trade; modelling; policy; wood products

Document Type: Research Article

Affiliations: 1: Scion, Te Papa Tipu Innovation Park, Rotorua, New Zealand. 2: Department of Forest and Wildlife Ecology, University of Wisconsin-Madison, Madison WI, USA. 3: Alphametrik, Ellerslie, Auckland, New Zealand.

Publication date: May 1, 2008

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