There is a strong incentive to manage forests on a sustainable basis when there areMultiple choice question.significant amounts of capital available.technological improvements for harvesting the forest.strong property rights in place.
Question
There is a strong incentive to manage forests on a sustainable basis when there areMultiple choice question.significant amounts of capital available.technological improvements for harvesting the forest.strong property rights in place.
Solution
The correct answer is "strong property rights in place."
This is because when property rights are strong, the owners of the forests have a clear incentive to manage them sustainably. They would want to ensure that the forests continue to provide them with benefits in the long term. If they deplete the forest resources, they would be the ones to suffer the loss.
On the other hand, having significant amounts of capital or technological improvements for harvesting the forest does not necessarily lead to sustainable management. These factors could just as easily lead to over-exploitation of the forest resources.
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