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In this report the property right structures surrounding tropical forest management are analyzed with a specific case study presented on tropical forests in Honduras. In order to adequately understand the set of property rights in place surrounding tropical forests, the applicable sets of property rights are laid out and explained (private, common, state, and open access). It is argued that the current property rights regimes in place surrounding tropical forests are inadequate and are the issue leading to high levels of deforestation. Conflicts and controversies surrounding the issue are presented for a counterargument and separate view of the issue. It was found that the current property rights regime in Honduras is inadequate for effective resource management as it lacks enforceability along with structure and is the prominent issue surrounding tropical deforestation. Private property rights were the most effective form of property rights found for maintaining natural resources, and it is therefore recommended that private ownership be instilled upon tropical forests to reduce the rate of deforestation. Free Market Environmentalism (FME) is offered as a solution to the current methodology for the management of tropical forests, as it advocates for private ownership and an enforceable set of rights. Therefore, it is recommended that a private property rights regime following the FME methodology replace existing state property rights in order to stem the tide of tropical deforestation.

Tropical Deforestation: Can Property Rights Stem the Tide?