Skip to main content Accessibility help
  • Print publication year: 2019
  • Online publication date: March 2019

8 - Smart Mixes in Forest Governance1

from Part II - Fisheries and Forestry


This chapter examines the extent to which public and private regulations interact in facilitating the necessary preconditions for effectively addressing common pool resources through clearly defining property rights, enhancing enforcement capacity, smoothing coordination, generating and sharing information and operating the right scale of governance. Existing studies identify three types of property rights that address common pool resource problems relating to forestry: public property rights, private property rights and communal property rights. Substantial transaction costs can, however, be involved in the establishment and maintenance of property rights; these costs are influenced by many factors, including especially public and private regulation. Moreover, clearly established property rights may still fail to address common pool resource problems due to the existence of externalities, which justify the intervention of regulation. Rather than working separately, public and private regulation often interact with each other. This chapter uses forest governance in Bolivia, Canada, Indonesia, Sweden and the US as models to explore how public and private regulations interact to facilitate the establishment and maintenance of property rights on the one hand, and to overcome the failures of the government and market on the other.

Related content

Powered by UNSILO
Alchian, A. & Woodward, S. L. 1988. ‘The Firm is Dead; Long Live the Firm: A Review of Oliver E. Williamson’s “The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting”’. Journal of Economic Literature 26(1), 6579.
Allen, D. W. 2000. ‘Transaction Costs’. In Bouckaert, B. & De Geest, G. (eds.), Encyclopedia of Law and Economics. Cheltenham, Edward Elgar, 893926.
Allen, D. W. 1991. ‘What are Transaction Costs?’. Research in Law and Economics 14, 118.
Anderson, T. L. & Leal, D. R. 1991. Free Market Environmentalism. London, Palgrave Macmillan.
Arnold, L. L. 2008. ‘Deforestation in Decentralised Indonesia: What’s Law Got to Do with It?’. Law, Environment & Development Journal 4(2), 75101.
Barr, C. M. et al. 2006. Decentralization of Forest Administration in Indonesia: Implications for Forest Sustainability, Economic Development and Community Livelihoods. Jakarta, CIFOR.
Bartley, T. 2011. ‘Transnational Governance as the Layering of Rules: Intersections of Public and Private Standards’. Theoretical Inquiries in Law 12(2), 517542.
Barzel, Y. 1989. Economic Analysis of Property Rights. Cambridge, Cambridge University Press.
Barzel, Y. 1985. ‘Transaction Costs: Are They Just Costs?’. Journal of Institutional and Theoretical Economics 141(1), 416.
Benneker, C. 2008. Dealing with the State, the Market and NGOs. The Impact of Institutions on the Constitution and Performance of Community Forest Enterprises in the Lowlands of Bolivia, Doctoral thesis, Wageningen University.
Berkes, F. 2009. ‘Evolution of Co-Management: Role of Knowledge Generation, Bridging Organizations and Social Learning’. Journal of Environmental Management 90(5), 16921702.
Boscolo, M. & Vargas Rios, M. T. 2007. ‘Forest Law Enforcement and Rural Livelihoods in Bolivia’. In Tacconi, L. (ed.), Illegal Logging: Law Enforcement, Livelihoods and the Timber Trade. London, Earthscan, 191217.
Cano Chacón, M. 2013. The Role of Information of the Marine Stewardship Council Certification Process in Developing Countries: A Case Study of Two MSC Fisheries Certified in Mexico. Dissertation, Dalhousie University.
Carraway, B. et al. 2002. Voluntary Implementation of Forestry Best Management Practices in East Texas. Texas Forest Service. Available at:
Cole, D. H. 2002. Pollution and Property: Comparing Ownership Institutions for Environmental Protection. Cambridge, Cambridge University Press.
Cole, D. H. 2010. ‘New Forms of Private Property: Property Rights in Environmental Goods’. In Bouckaert, B. (ed.), Property Law and Economics. Cheltenham, Edward Elgar. 225269.
Dasgupta, P. 1982. The Control of Resources. Cambridge, MA, Harvard University Press.
Denman, D. R. 1978. The Place of Property: A New Recognition of the Function and Form of Property Rights in Land, Berkhamsted, Geographical Publications.
Espinoza, O. & Dockry, M. J. 2014. ‘Forest Certification in Bolivia: A Status Report and Analysis of Stakeholder Perspectives’. Forest Products Journal 64(3–4), 8089.
FAO 2010. Global Forest Resources Assessment 2010. Rome, FAO.
Feeny, D., Berkes, F., McCay, B. & Acheson, J. M. 1990. ‘The Tragedy of the Commons: Twenty-Two Years Later’. Human Ecology 18(1), 119.
Gold, M. E. & Zuckerman, R. B. 2014. ‘Indonesian Land Rights and Development’. Columbia Journal of Asian Law 28(1), 4170.
Gulbrandsen, L. H. 2010. Transnational Environmental Governance: The Emergence and Effects of the Certification of Forest and Fisheries. Cheltenham, Edward Elgar Publishing.
Gulbrandsen, L. H. & Auld, G. 2016. ‘Contested Accountability Logics in Evolving Nonstate Certification for Fisheries Sustainability’. Global Environmental Politics 16(2), 4260.
Gupta, J., Van der Grijp, N. & Kuik, O. 2012. Climate Change, Forests and REDD: Lessons for Institutional Design. London, Routledge.
Harada, K. & Wiyono, . 2014. ‘Certification of a Community-Based Forest Enterprise for Improving Institutional Management and Household Income: A Case from Southeast Sulawesi, Indonesia’. Small-scale Forestry 13(1), 4764.
Hardin, G. 1968. ‘The Tragedy of the Commons’. Science 162(3859), 12431248.
Hinrichs, A., Muhtaman, D. R. & Irianto, N. 2008. Forest Certification on Community Land in Indonesia. Eschborn, Deutsche Gesellschaft für Technische Zusammenarbeit.
Hosonuma, N., Herold, M., De Sy, V., et al. 2012. ‘An Assessment of Deforestation and Forest Degradation Drivers in Developing Countries’. Environmental Research Letters 7(4), 113.
Hysing, E. 2009. ‘From Government to Governance? A Comparison of Environmental Governing in Swedish Forestry and Transport’. Governance 22(4), 647672.
Hysing, E. & Olsson, J. 2005. ‘Sustainability through Good Advice? Assessing the Governance of Swedish Forest Biodiversity’. Environmental Politics 14(4), 510526.
Indrarto, G. B., Murharjanti, P., Khatarina, J., et al. 2012. The Context of REDD+ in Indonesia: Drivers, Agents and Institutions. CIFOR Working Paper No. 92.
Johansson, J. 2014. ‘Towards Democratic and Effective Forest Governance? The Discursive Legitimation of Forest Certification in Northern Sweden’. Local Environment 19(7), 803819.
Johansson, J. & Keskitalo, E. C. H. 2014. ‘Coordinating and Implementing Multiple Systems for Forest Management: Implications of the Regulatory Framework for Sustainable Forestry in Sweden’. Journal of Natural Resources Policy Research 6(3), 117133.
Johansson, T., Hjältén, J., De Jong, J. & von Stedingk, H. 2013. ‘Environmental Considerations from Legislation and Certification in Managed Forest Stands: A Review of Their Importance for Biodiversity’. Forest Ecology and Management 303, 98112.
Keskitalo, E. C. H., Sandstrom, C., Tysiachniouk, M. S. & Johansson, J. 2009. ‘Local Consequences of Applying International Norms: Differences in the Application of Forest Certification in Northern Sweden, Northern Finland, and Northwest Russia’. Ecology and Society 14(2), 114.
Klassen, A., Romero, C. & Putz, F. E. (eds.). 2014. Forest Stewardship Council Certification of Natural Forest Management in Indonesia: Required Improvements, Costs, Incentives, and Barriers. Vienna, IUFRO.
Lister, J. 2012. Corporate Social Responsibility and the State: International Approaches to Forest Co-regulation. Vancouver, UBC Press.
Liu, J., Faure, M. & Mascini, P. 2018. Environmental Governance of Common Pool Resources: A Comparison of Fishery and Forestry. London, Routledge.
McCarthy, J., Barr, C., Resosudarmo, I. & Dermawan, A. 2006. ‘Origins and Scope of Indonesia’s Decentralization Laws’. In Barr, C., Resosudarno, I., Dermawan, A., McCarthy, J. F., Moeliniono, M. & Setiono, B., (eds.), Decentralization of Forest Administration in Indonesia: Implications for Forest Sustainability, Economic Development and Community Livelihoods. Bogor, CIFOR, 3157.
McDermott, C., Cashore, B. & Kanowski, P. 2010. Global Environmental Forest Policies: An International Comparison. London, Earthscan.
McDermott, C., Noah, C. & Cashore, B. 2008. ‘Differences that “Matter”? A Framework for Comparing Environmental Certification Standards and Government Policies’. Journal of Environmental Policy and Planning 10(1), 4770.
Millennium Ecosystem Assessment. 2005. Ecosystem and Human Well-being: Synthesis. Washington, DC, Island Press.
Müller, R., Pacheco, P. & Montero, J. C. 2014. The Context of Deforestation and Forest Degradation in Bolivia: Drivers, Agents and Institutions. CIFOR Occasional Paper No. 108.
Ostrom, E. 2010. ‘Beyond Markets and States: Polycentric Governance of Complex Economic Systems’. American Economic Review 100(3), 641672.
Overdevest, C. 2010. ‘Comparing Forest Certification Schemes: The Case of Ratcheting Standards in the Forest Sector’. Socio-Economic Review 8(1), 4776.
Pacheco, P. 2004. ‘What Lies behind Decentralisation? Forest, Powers and Actors in Lowland Bolivia’. The European Journal of Development Research 16(1), 90109.
Pacheco, P. 2011. ‘Land Tenure, Forest and Political Reforms: A Look at their Implications for Common-Property Forests in Lowland Bolivia’. Conference Paper: Sustaining Commons: Sustaining Our Future, the Thirteenth Biennial Conference of the International Association for the Study of the Commons.
Pacheco, P., Barry, D., Cronkleton, P. & Larson, A. M. 2008. The Role of Informal Institutions in the Use of Forest Resources in Latin-America. Bogor, Center for International Forestry Research.
Paillet, Y., Bergès, L., Hjältén, J., et al. 2010. ‘Biodiversity Differences between Managed and Unmanaged Forests: Meta-Analysis of Species Richness in Europe’. Conservation Biology 24(1), 101112.
Real, B. 2002. ‘Legal Reforms in Bolivia in the 1990s: Challenges and Opportunities for Decentralization, Indigenous Rights and Forest Management’. Doctoral thesis, University of Florida.
Richardson, J. S., Naiman, R. J. & Bisson, P. A. 2012. ‘How Did Fixed-width Buffers Become Standard Practice for Protecting Freshwaters and Their Riparian Areas from Forest Harvest Practices?’. Freshwater Science 31(1), 232238.
Safiti, M. 2010. ‘Forest Tenure in Indonesia: The Socio-legal Challenges of Securing Communities’ Rights’. Doctoral thesis, Leiden University.
Sahlin, M. 2013. Credibility at Stake: How FSC Sweden Fails to Safeguard Forest Biodiversity. Stockholm, Swedish Society for Nature Conservation.
Sahlin, M. 2011. Under the Cover of the Swedish Forestry Model. Stockholm, Swedish Society for Nature Conservation.
Sari, I. M. 2013. ‘Community Forests at a Crossroads: Lessons Learned from Lubuk Beringin Village Forest and Guguk Customary Forests in Jambi Province, Sumatra, Indonesia’. Doctoral thesis, University of Oslo.
Schlager, E. & Ostrom, E. 1999. ‘Property Rights Regimes and Coastal Fisheries: An Empirical Analysis’. In McGinnis, M. D. (ed.), Polycentric Governance and Development: Readings from the Workshop in Political Theory and Policy Analysis. Ann Arbor, MI, University of Michigan Press. 87113.
Singer, B. 2009. ‘Indonesian Forest-Related Policies: A Multisectoral Overview of Public Policies in Indonesia’s Forests since 1965’. Doctoral thesis, Institut d’Etudes Politiques and CIRAD, France. Available at:
Steering Committee of the State-of-Knowledge Assessment of Standards and Certification. 2012. Toward Sustainability: The Roles and Limitations of Certification, Washington, DC, RESOLVE Inc. Available at:
Stora Enso. 2014. ‘Global Responsibility Performance’. Part of Stora Enso’s Annual Report 2014. Available at:
Stroup, R. L. & Baden, J. A. 1983. Natural Resources: Bureaucratic Myths and Environmental Management. Cambridge, Ballinger Publishing Company.
Sunderlin, W. D., Hatcher, J. & Liddle, M. 2008. From Exclusion to Ownership? Challenges and Opportunities in Advancing Forest Tenure Reform. Washington, DC, Rights and Resources Initiative.
Sweeney, B. W., Bott, T. L., Jackson, J. K., et al. 2004. ‘Riparian Deforestation, Stream Narrowing, and Loss of Stream Ecosystem Services’. Proceedings of the National Academy of Sciences of the United States of America 101(39), 1413214137.
Uggla, Y., Forsberg, M. & Larsson, S. 2016. ‘Dissimilar Framings of Forest Biodiversity Preservation: Uncertainty and Legal Ambiguity as Contributing Factors’. Forest Policy and Economics 62, 3642.
Verry, E. S. & Dolloff, C. A. 2000. ‘The Challenge of Managing for Healthy Riparian Areas’. In Verry, E. S., Hornbeck, J. W. & Dolloff, C. A. (eds.), Riparian Management in Forests of the Continental Eastern United States. Boca Raton, FL, CRC Press LLC. 122.
Wood, P. J. 2009. ‘Public Forests, Private Governance: The Role of Provincial Governments in FSC Forest Certification’. Doctoral thesis, University of Toronto.