Optimal enforcement of property rights on developing country forests subject to illegal logging

Developing country forests are typically subject to inadequate property rights enforcement. These resources convey beneficial externalities and redistribute income to rural poor so that privatization may be inappropriate. What is the optimal forest-property-rights-management regime and the optimal dynamic schedule of enforcement spending? These issues are examined in centralised and decentralised settings where ‘rational-myopic’ poachers confront forest protection authorities. The roles of penalties and judicial systems are discussed as well as the efficiency arguments for community forestry.