Canadian Forest Tenures as Incentive Frameworks for the Silvicultural Expenditures of Private Firms

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  • In Canada, where most forest lands are publicly owned, forest management responsibilities are delegated to the private sector through licensing arrangements which grant limited usurfructuary rights. In order to ensure that public silvicultural goals are met on licensed public lands, various policy instruments have been adopted. These include contractual requirements, the reimbursement of silvicultural costs and investment incentives in the form of shares in the value of timber crops resulting from voluntary silvicultural activities. In this paper, the impacts of these alternative arrangements on the investment behaviour of private forest companies is analyzed, welfare losses are identified and policy implications are discussed.

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    Attribution-NonCommercial-NoDerivatives 3.0 International