As an environementalist who likes market solutions, the problem of deforestation is someting to adress. An unrestricted exploitation seems unresponsible since those forests are important for the welfare of the whole planet. To do nothing is not to take a market friendly position since to do nothing is not the solution of a problem consisting in doing nothing to stop an accelerating deforestation of the important rainforests of the Earth.
Investments and reinvestments in agricultural production gives us the food we need for survival, our daily bread, so to speak. This is done, mainly, by private initiatives, private firms. I think we have to invest in the rainforests to save them. I leave it as an excercise for the reader to figure out how it can be done in a reasonable way. It is not hard to understand that Brasil, for exsample, want incomes from the resourses in the forests. If the world wish to save the forests, it has to invest in them. In a way that saves the forests from destruction. It is here we need market solutions. I think, personally, that legal prohibitions and taxes can mean someting important, but only if you understand how the market works. A higher price and a lower supply is equivalent to a more responsible income making, considering the rainforests as an area for global exploation. The exploated area of the valuable forests can in this way become minor without a loss for the producers and sellers. We can buy seeds and replant those valuable plants elsewhare as a complement and as an act of responsibility, if we really want to save them - and us.
