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42

Controlling and limiting the road transport and intake to mills

provides one of the primary opportunities for limiting the total

amount of logging from regions with high rates of illegal log-

ging. Introducing road or timber taxes also makes illegal tim-

ber less attractive from such areas. However, imposing such a

tax would have to provide rewards, bounties or returns for local

officers that are greater than the typical bribe paid per truck in

order to be an effective incentive to enforce. Hence, identifying

the level of tax or tariff to be imposed will depend upon the

region, the rate of illegal logging, its value, and the bribes com-

monly paid in the region.

Controlling the bottlenecks, combined with road or transporta-

tion tariffs dependent upon rate of deforestation and criminal

activity in the region would raise the cost of illegal timber to the

same cost as legal timber. This would also increase the costs for

mills processing illegal wood and impact their attractiveness on

the stock markets for investors.

Illegal logging bottlenecks

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Wood is illegally

logged and collected

Wood is transported

to mills with trucks

Wood is transported

by river

Border crossing

Timber aggregation point

Border crossing point

Harbour for international shipping

Source: Personal communication with Christian Nellemann.

Mill or other wood processing facility

Bottlenecks

Mills and processing

facilities far from the

logging area pay more in

transportation costs