April 17, 2011

Reducing Greenhouse Gas Emissions by Forest Protection: The Transaction Costs of REDD

by Lee J. Alston and Krister Andersson

- The existing institutional design for REDD+ relies heavily on central government interventions in program countries. Analyzing new data on forest conservation outcomes, we identify several problems with this centralized approach to forest protection. We describe options for a more diversified policy approach that could reduce the full set of transaction costs and thereby improve the efficiency of the market-based approach for conservation.

Alston, L.J. and K. Andersson (2011). "Reducing Greenhouse Gas Emissions by Forest Protection: The Transaction Costs of REDD." NBER Working Paper No. 16756, Feb 2011.