If the property rights for forests are clear and enforced, then

Question

Quizplus · Accepted Answer

If property rights for forests are clear and enforced, then the owners have profit incentives to harvest slowly over time. This leads to sustainable management of the forest, ensuring that logging does not occur at an unsustainable rate. Option A is incorrect as clear and enforced property rights prevent the forests from becoming common property. Option B is also incorrect as governments may still overtax the forest regardless of clear property rights. Option D is incorrect as clear and enforced property rights ensure sustainably managed forests.

If the Property Rights for Forests Are Clear and Enforced