{"id":1975,"date":"2013-01-04T16:49:25","date_gmt":"2013-01-04T16:49:25","guid":{"rendered":"http:\/\/alexpfaff.com\/?post_type=research-paper&#038;p=1975"},"modified":"2013-01-04T16:49:25","modified_gmt":"2013-01-04T16:49:25","slug":"realistic-redd-improving-the-forest-impacts-of-domestic-policies-in-different-settings","status":"publish","type":"post","link":"https:\/\/sites.sanford.duke.edu\/alexpfaff\/2013\/01\/04\/realistic-redd-improving-the-forest-impacts-of-domestic-policies-in-different-settings\/","title":{"rendered":"Realistic REDD: Improving the Forest Impacts of Domestic Policies in Different Settings"},"content":{"rendered":"<div class=\"authors\">Alexander Pfaff, Gregory S. Amacher, Erin O. Sills<\/div>\n<div class=\"published\">Review of Environmental Economics and Policy, volume 7, issue 1, winter 2013, pp. 114\u2013135 doi:10.1093\/reep\/res023<\/div>\n<p align=\"LEFT\"><a href=\"https:\/\/sites.sanford.duke.edu\/alexpfaff\/wp-content\/uploads\/sites\/15\/2013\/01\/PfaffAmacherSillsREEP2013v7pp114-135.pdf\"><img decoding=\"async\" class=\"alignleft\" src=\"https:\/\/sites.sanford.duke.edu\/alexpfaff\/wp-content\/uploads\/sites\/15\/2016\/06\/pdf-icon-50x50-1.png\" alt=\"PDF link icon\" \/><\/a>This article, which is part of a symposium on the economics of REDD, identifies three common settings for forest loss involving different types of decision-making agents that operate under different markets and institutions. That suggests using different theoretical frameworks for these three settings, which in turn generates different predictions concerning policies\u2019 impacts. The first model, \u201cproducer profit maximization given market integration,\u201d has been applied to many private decisions about the best locations for profitable land uses, such as agriculture and forest. Its predictions have been widely studied empirically, beginning no later than von Thunen (1826). The second model, \u201crural household optimization given incomplete markets and household heterogeneity,\u201d has been applied to more isolated settings featuring high transactions costs that yield incomplete integration of households in input and output markets. Its policy impact predictions have been tested with surveys at household and village levels. In the third model, \u201cpublic optimization given production and corruption responses by private firms,\u201d a public agency determines public forest access by balancing public goods, public revenue needs, and private rents to award concessions. There is potential for corruption, and the decisions may be affected by decentralization. This model\u2019s predictions can be tested using observed policies. We find that past policies rarely addressed the incentives driving forest loss effectively. This helps to explain the limited impact of past policies on deforestation and forest degradation. It also suggests directions for the design of future policies. In sum, the theory and the evidence suggest that REDD success requires an understanding of all the incentives that drive forest loss, so that domestic policy can be tailored to specific settings (i.e., relevant agents and institutions).<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alexander Pfaff, Gregory S. Amacher, Erin O. Sills Review of Environmental Economics and Policy, volume 7, issue 1, winter 2013, pp. 114\u2013135 doi:10.1093\/reep\/res023 This article, which is part of a symposium on the economics of REDD, identifies three common settings for forest loss involving different types of decision-making agents that operate under different markets and institutions. That suggests using different theoretical frameworks for these three settings, which in turn generates different predictions concerning policies\u2019 impacts. The first model, \u201cproducer profit maximization given market integration,\u201d has been applied to many private decisions about the best locations for profitable land uses, such as agriculture and forest. Its predictions have been widely studied empirically, beginning no later than von Thunen (1826). The second model, \u201crural household optimization given incomplete markets and household heterogeneity,\u201d has been applied to more isolated settings featuring high transactions costs that yield incomplete integration of households in input and output markets. Its policy impact predictions have been tested with surveys at household and village levels. In the third model, \u201cpublic optimization given production and corruption responses by private firms,\u201d a public agency determines public forest access by balancing public goods, public revenue needs, and private rents to award concessions.&#8230;<\/p>\n<div class=\"more-link-wrapper\"><a class=\"more-link\" href=\"https:\/\/sites.sanford.duke.edu\/alexpfaff\/2013\/01\/04\/realistic-redd-improving-the-forest-impacts-of-domestic-policies-in-different-settings\/\">Continue reading<span class=\"screen-reader-text\">Realistic REDD: Improving the Forest Impacts of Domestic Policies in Different Settings<\/span><\/a><\/div>\n","protected":false},"author":37,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[16,47,33,39],"tags":[79,132,142],"class_list":["post-1975","post","type-post","status-publish","format-standard","hentry","category-16","category-theory","category-global","category-land-use-climate-mitigation","tag-deforestation","tag-policy","tag-redd","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Realistic REDD: Improving the Forest Impacts of Domestic Policies in Different Settings - Alex Pfaff<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sanford.duke.edu\/alexpfaff\/2013\/01\/04\/realistic-redd-improving-the-forest-impacts-of-domestic-policies-in-different-settings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Realistic REDD: Improving the Forest Impacts of Domestic Policies in Different Settings - Alex Pfaff\" \/>\n<meta property=\"og:description\" content=\"Alexander Pfaff, Gregory S. Amacher, Erin O. Sills Review of Environmental Economics and Policy, volume 7, issue 1, winter 2013, pp. 114\u2013135 doi:10.1093\/reep\/res023 This article, which is part of a symposium on the economics of REDD, identifies three common settings for forest loss involving different types of decision-making agents that operate under different markets and institutions. That suggests using different theoretical frameworks for these three settings, which in turn generates different predictions concerning policies\u2019 impacts. The first model, \u201cproducer profit maximization given market integration,\u201d has been applied to many private decisions about the best locations for profitable land uses, such as agriculture and forest. Its predictions have been widely studied empirically, beginning no later than von Thunen (1826). The second model, \u201crural household optimization given incomplete markets and household heterogeneity,\u201d has been applied to more isolated settings featuring high transactions costs that yield incomplete integration of households in input and output markets. Its policy impact predictions have been tested with surveys at household and village levels. 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