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Voluntary Environmental Action and Export Destinations: The Case of Forest Certification

Klaus Moeltner () and Gerrit van Kooten

Journal of Agricultural and Resource Economics, 2003, vol. 28, issue 2, 14

Abstract: There is an increasing tendency for forest product firms worldwide to adopt sound environmental management practices by voluntarily agreeing to have their forest practices certified by third parties. Using a simple model of profit maximization, we illustrate that the puzzling emergence of this non-state, self-imposed governance structure is compatible with firms' profit motives. An empirical model using firm data from three countries shows firm location and export destinations play a key role in firms' decisions to seek certification, while the nature of forestland ownership has no significant impact on certification decisions.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:31100

DOI: 10.22004/ag.econ.31100

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