Policy design and the optimal location of forests in Flanders

Abstract

This paper analyses the current Flemish afforestation policy and shows that this policy is likely to be non-optimal and can be improved. An important step in improving the afforestation policy in Flanders is the selection of the optimal location of a cluster of new forests as a whole. The analysis of the optimal location can provide the regulator with objective criteria, which can be used to develop optimal regulations. It is also worthwhile to consider alternative policies, such as auctions for afforestations projects. To this effect, we investigate several policy options and test these in a real-life example for the creation of new forests in East Flanders.Afforestation / policy instruments / optimal location