The theory of the firm is viewed as the core of NIE, and transaction cost economics (TCE) is at the heart of that theory and at the centre of the economics of organization. [...] (2008) apply the theory to forestry concessions in Central Africa and South America, stating that the economic value of the forest to the principal is contingent on the efficiency of the forest company. [...] Three management characteristics are displayed in the figure: (1) the exclusivity of property rights enjoyed by the license holder (vertical axis), (2) the term of the license agreement (horizontal axis), and (3) the size of the extent to which an agent can impact the forest footprint (with a larger font indicative of a greater footprint). [...] BC has often used the NR license for salvage harvesting as its fixed duration implies that the license is not meant to be sustainable in perpetuity and conditions can be tailored to describe the timber types eligible for harvest, allowing the principal more discretion in influencing the harvest choices of the licensee and the state of the forest. [...] At the other extreme, by shifting forest management to the exclusive purview of a single tenure holder, as in the case of a tree farm license (TFL), many of the transactions that occur are eliminated and takes advantage of the specialist knowledge of the tenure holder from a silvicultural perspective.
Authors
- Pages
- 40
- Published in
- Canada
