Implications of legalizing artisanal chainsaw milling on social welfare, income distribution and the economic performance of sawyers in Cameroon

Abstract

Cameroon has been at the centre of global concerns about illegal timber logging for several decades, much of which has been driven by the informal timber sector. Hence, this study was conducted with the objectives to assess the benefits gained by different sawyer categories undertaking illegal timber logging and compare them to simulated legal benefits in order to envisage solutions to legalize the activity. Our results indicate that in spite of its supplementary tax expenses, legal timber logging would lead to higher net profit, profit margin, value added, social welfare and a lower Gini coefficient because the legally produced timber avoids the payment of bribes, is sold at higher prices, induces higher labour productivity and positive externalities from safeguarded forests. Hence, the full enforcement of the provisions of the 1994 Forestry Law to legalize artisanal chainsaw milling activities in Cameroon is recommended.