Land rights protection in the pulp and paper production system
Carolina Torres Graça, Decio Zylbersztajn
Economics, Business and Accounting Faculty, University of São Paulo, Brazil
This article explores how the quality of institutions influences the strategic choice of agents in the pulp and paper production system based on the forest plantation sector. We employ the Economic Analysis of Property Rights as foundation, and test the proposition: in federative states where the institutional environment is fragile and therefore the state has a high cost to enforce property rights, private mechanisms stand out in the protection of property rights. The analysis of three business cases of companies with forest plantations in more than one federative unit revealed the broad range of private mechanisms in place to cope with insecure land rights. In addition, in the federative units where government fails to be a good property rights steward, we found geographically specific initiatives being used. Another finding was the identification of variables that are able to evaluate the quality of institutions and employed in the companies´ decision-making process.
Event: Annual World Bank Conference on Land and Poverty 2019
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