How to manage tropical forests more sustainably: The case of Indonesia

Although there is a rationale for a more conservative management of the remaining tropical forests, policy-makers in the tropical countries tend to be reluctant to implement appropriate policy measures, because they fear the short-run economic costs of environmental protection. Taking Indonesia as an example, the following article outlines how it is possible to protect tropical forests more effectively without necessarily foregoing economic gains. This study is part of the Kiel Institute's research project “International and National Economic Policy Measures to Reduce the Emission of Greenhouse Gases by Protection of Tropical Forests” financed under grant II/67 310 by Volkswagen-Stiftung. The author wishes to acknowledge helpful comments received from Rainer Schweickert und Manfred Wiebelt.