There are five types of forest policy instruments:
1. Normative or regulatory instruments (incl. laws, decrees, orders and administrative rules; Court decisions and sanctions due to breaking of the law)
2. Economic or financial
Subsidies (incentives, support);
Disincentives (measures that increase costs or decrease prices of production or an action);
Tax-concessions: exemptions from direct (income tax) or indirect (value added, gasoline) taxes;
Contracts between forest owners and public agencies.
Use of information by the government to induce certain actions, for example training of forest owners.
4. Planning instruments
Forest planning occurs usually at many levels in forestry. All plans are important forest policy instruments, but for national forest policy the national level planning deserves special attention.
Reforms are significant changes in the basic institutions of forestry, such as relatively rapid shifts in forest ownership, organisational structures, financial or legislative framework.
In practice, forest policies employ most if not all these policy instruments.
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