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Abstract:
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"This paper addresses that crisis, tropical deforestation in Ecuador serving as a case study. To begin, the tenure regime facing those who live in or use tree-covered land in that country is described. Next, four specific institutional incentives for deforestation in Ecuador and other Latin American countries are examined. First, the waste and misuse of forest resources is, in part, a classic open access problem. Second, stipulating that deforestation is a prerequisite for land tenure sets in motion a cycle of excessive land clearing and erosive farming. Third, bureaucratically induced tenure insecurity further diminishes private incentives to conserve natural resources. Fourth, formal property law in Latin America induces the demise of indigenous common property regimes, which have long provided a framework for sustainable agriculture and forest conservation.
"Based on an examination of these four institutional incentives, we conclude this paper with a discussion of policy reforms needed to ensure the conservation of Latin America's tropical forests."
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