@article{Kuusela:199300,
      recid = {199300},
      author = {Kuusela, O.P. and Amacher, G.S. and Moeltner, K.},
      title = {Performance Bonds in Tropical Timber Concessions:  Encouraging the Adoption of Reduced Impact Logging  Techniques},
      journal = {Scandinavian Forest Economics: Proceedings of the Biennial  Meeting of the Scandinavian Society of Forest Economics},
      address = {2012-05},
      number = {1333-2016-103847},
      pages = {11},
      year = {2012},
      abstract = {We examine the use of performance bonds in tropical forest  concessions. Bonds are a promising
new policy instrument  that have been discussed in several articles and used in  some cases as a way
of encouraging adoption of sustainable  forest management practices, including reduced  impact
logging methods, and have been proposed due to  apparent failures of traditional Pigouvian
instruments. Our  research examines the impact of three practical  complications hindering the
effective adoption of bonding  schemes: harvester participation constraints, government  repayment
risk, and imperfect enforcement. By building a  simple two-stage analytical model, we first
highlight the  role of participation constraints in the concession bond  design problem. Model
simulations are used to examine  policy implications such as potential for REDD+ payments  in
improving the bonding outcomes, and how high these  payments should be in order to guarantee full
compliance  with reduced impact logging.},
      url = {http://ageconsearch.umn.edu/record/199300},
      doi = {https://doi.org/10.22004/ag.econ.199300},
}