Property rights for changing forest values: a study of mixed-wood management in Canada
As new values of forests emerge, property rights must evolve to accommodate these changes. An analytical framework is presented that may be used to assess whether private negotiations between firms may optimally accommodate newly emerging values. A study of mixed-wood management in Canada reveals that private negotiations form a central role in many mixed-wood policies with varying degrees of success. The analytical framework is used to illustrate that successes in mixed-wood policies may be attributed to tenure structures that facilitate trades in property rights, whereas problems may be explained by constrained or absent markets for property rights. Although private market negotiations may accommodate emerging values in the case of mixed-wood management, physical characteristics and social values associated with nontimber resources may prevent such solutions and may therefore require government regulation.