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An Optimal Control Model of Illegal Logging by Commercial Logging Contractors in Laos PDR
McAllister, Ryan, Beard, Rodney and Asafu-Adjaye, John (2000-07-01) An Optimal Control Model of Illegal Logging by Commercial Logging Contractors in Laos PDR. Discussion Paper No. 275, Department of Economics, The University of Queensland.
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MIMEType |
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Downloads |
econ_dp_275_00.pdf
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econ_dp_275_00.pdf |
application/pdf |
1.57MB |
218 |
| Author(s) |
McAllister, Ryan
Beard, Rodney
Asafu-Adjaye, John
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| Title |
An Optimal Control Model of Illegal Logging by Commercial Logging Contractors in Laos PDR
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| School, Department or Centre |
Department of Economics
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| Institution |
The University of Queensland
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| Report Number |
Discussion Paper No. 275
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| Publication date |
2000-07-01
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| Subject |
340201 Agricultural Economics
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| Abstract/Summary |
Laos is an income-poor but resource-rich country heavily dependent upon its natural forest resources. This paper uses an optimal control model to analyse deforestation in Laos.
Specifically, this paper analyses illegal logging by a sole commercial logging contractor within a single region in Laos. The commercial contractor aims to maximise discounted profits from
commercial contracts to log government quotas and from illegal logging. Policy implications for a government wishing to sustain a target level of forest stock are derived from the model. Results
show that it is likely that the steady state level of the forest stock will be lower than the government's target. In order to minimise the difference between the target and actual levels of
remnant native forest, the government can consider increasing the value of contracts awarded, the duration of contracts awarded or the level of fines imposed on detected illegal loggers. The model,
however, simplified what is an extremely complex problem. Game-theoretic extensions to the modelling framework are suggested as avenues that may help the model better reflect the complexity of
illegal logging and deforestation in Laos.
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| Keyword(s) |
logging
illegal logging
Laos
deforestation
timber
models
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