ABSTRACT
This chapter discusses the role of economic policy in contributing to tropical deforestation. It explores the importance of proper valuation of forest resources, proper analysis of land use options and the causes behind tropical deforestation and correcting market and policy distortions that provide incentives for excessive depletion and conversion of forest lands. The chapter highlights the role of economic policies in forestry management. Tropical moist forest - the “rainforest” as it is more popularly known - includes wet evergreen, moist semi-deciduous, moist deciduous and freshwater swamp forest. Potential economic losses in terms of non-timber products, such as essential oils, honey, wildlife products, resins, bamboos, fruits and nuts, from deforestation may also be significant. Clearing forest land for agriculture is thought to be the major cause of tropical deforestation. Excessive tropical deforestation is a matter of concern for both tropical forest countries and the international community.
