Incentive modes and reducing emissions from deforestation and degradation: Who can benefit most?

Abstract

An incentive mechanism is key to succeed the investments in Reducing Emissions from Deforestation and Degradation programs. However, the diversification of determinants makes it difficult to establish one mode to best incentive stakeholders. This paper compares various incentive modes in benefiting stakeholders by simulating dynamic game models. It analyzes the profit-making of developers and landholders based on four incentive modes. The modes are preferential tax for developers, incentive of carbon offsets for developers, investment incentive for developers, and incentive of reducing emissions for landholders. This paper compares the effects of incentive modes on benefit distribution of st..