Forest Certification: Economic Issues and Welfare Implications

M. K. Haener and Martin Luckert

Canadian Public Policy, 1998, vol. 24, issue s2, 83-94

Abstract: Forest certification has emerged as a means of promoting the elusive goal of sustainable forest management. This paper reviews the economic issues and potential welfare implications of forest certification in light of this management goal, but finds that the effect of certification on forest product markets is uncertain. We examine why certification schemes may fail to regulate optimally market failures, and may actually decrease welfare compared to a non-certified state. Forest certification, it turns out, may not be the best policy tool for promoting sustainable forest management.

Date: 1998
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