Green Carbon, Black Trade

Causes of illegal logging The Indonesian model

Economic and political instability

Lack of democracy and transparency

C O R R U P T I O N A T H I G H E R S T A T E L E V E L

Patronage and favouritism

S Y S T E M F A I L U R E C O R R U P T I O N A T L O W E R S T A T E L E V E L

Monopolistic concession agreement

Corporation’s in uence on Government

Poor concessional agreement

Overcapacity

Natural scarcity rents

Inadequate rules, regulations and permits

ILLEGAL LOGGING

Ineciency and waste

Inadequate penalty system

Taxation regimes

Provision of resources at low prices

Poverty

Low quality of bureaucracy

Weak Government

Monitoring and enforcement capacity

Sources: Palmer, C. E.,The Extent and Causes of Illegal Logging: An Analysis of a Major Cause ofTropical Deforestation In Indonesia, CSERGE Working Paper.

20