FOREST ECONOMICS. Daowei Zhang and Peter H.'Pearse. UBCPress-Vancouver Toronto

Transcription

1 FOREST ECONOMICS Daowei Zhang and Peter H.'Pearse UBCPress-Vancouver Toronto

2 Figures and Tables / xi Foreword / xv Preface / xvii Conversion Factors / xxi PART 1: MARKETS, GOVERNMENT, AND FOREST INVESTMENT ANALYSIS 1 Forestry's Economic Perspective / 3 Forestry from an Economic Viewpoint / 3 Basic Economic Questions / 7 Mixed Capitalism and the Role of Government / 9 Economic Objectives: Efficiency and Equity / 11 Forests as Economic Resources / 13 Why Forest Economics? / 15 Economic Decision Making / 17 Review Questions / 22 Further Reading/ 23 2 Market Economies and the Role of Government / 24 Economic Efficiency and Opportunity Costs / 25 The Theory of Production / 26 Allocating Inputs among Alternative Uses / 38 Market Failures and Externalities in Forestry / 40

3 vi Government Intervention and Policy Failure / 42 Appendix: Marginal Conditions for Efficiency / 44 Review Questions / 51 Further Reading/52 3 Forest Investment Analysis / 53 Time and the Role of Interest / 53 Compounding, Discounting, and Present Values / 55 Criteria for Investment Decisions / Interest Rate, Inflation, Risk, and Uncertainty / 70 Integrating Economics and Silviculture / 81 Valuing Pre-Merchantable Timber / 83 Taxes and Social Considerations / 92 Notes/93 Appendix: Compounding and Discounting Formulas Commonly Used in Forestry / 94 Review Questions / 95 Further Reading / 97 PART 2: THE FOREST SECTOR - LAND, TIMBER, AND UNPRICED FOREST VALUES 4 Timber Supply, Demand, and Pricing / 101 Supply, Demand, and Price Equilibrium / 101 The Forest Products Sector / 109 Forest Products Supply and Demand / 113 The Demand for Timber / 116 Timber Supply/123 Long-Run Wood Supply Projections / 132 Determinants of Stumpage Prices / 134 Price Distortions /135 Note/136 Review Questions /137 Further Reading/138 5 Unpriced Forest Values / 140 Unpriced Values: A Problem of Measurement / 140 Consumer Surplus as a Measure of Value / 142 Evaluating Unpriced Recreation / 144 Other Considerations in Valuing Recreational Resources / 159

4 vii Externalities and Intrinsic Value / 163 Other Practical Complications / 164 Review Questions /166 Further Reading/ Land Allocation and Multiple Use / 168 Intensity of Land Use / 168 Extensive Margin of Land Use / 170 Allocation among Uses / 172 Combinations of Uses / 175 Practical Difficulties /182 An Illustration: Land-Use Change Associated with the Rise of Institutional Timberland Ownership in the United States / 185 Review Questions /187 Further Reading / 188 PART 3: THE ECONOMICS OF FOREST MANAGEMENT 7 The Optimal Forest Rotation / 191 Optimal Rotation Age in Discrete Format / 192 Optimal Rotation Age in Continuous Format / 205 Cutting Cycles for an Uneven-Aged Stand / 209 Comparisons with Other Rotation Criteria / 210 Other Impacts on the Optimal Rotation / 212 The Hartman Rotation Age / 216 Notes/221 Review Questions / 224 Further Reading/224 8 Regulating Harvests over Time / 226 The Stand and the Forest / 227 Market Solutions and Limitations / 228 The Regulated Forest / 230 Transition to a Normal Forest / 231 Sustained Yield Rationale and Critique / 237 Timber Harvests over Time in the Absence of Sustained Yield Policy: Market as a Regulator / 242 New Approaches to Forest Regulation / 244 Review Questions / 245 Further Reading / 246

5 viii 9 Long-Term Trends in the Forest Sector and Silvicultural Investment / 248 Long-Term Trends in the Forest Sector / 248 A Conceptual Model for Silvicultural Investment / 259 Factors Influencing Silvicultural Investment on Private Lands / 262 Silvicultural Investment on Public Lands / 264 Forest Plantation Development in the Southern United States / 265 Note / 269 Review Questions / 269 Further Reading/270 PART 4: ECONOMICS OF FOREST POLICY 10 Property Rights / 273 Property Rights, Property Value, and Economic Efficiency / 274 Evolution of Forest Property Rights / 279 Dimensions of Property and Their Economic Implications / 282 Common Forms of Forest Tenure / 289 Economic Issues of Tenure Systems / 293 Private and Public Ownership / 297 Review Questions / 299 Further Reading / Forest Taxes and Other Charges / 302 Characteristics of Forest Charges / 303 Types of Forest Levies / 305 Direct Taxes/320 Tax Incidence and Deadweight Loss -/ 322 The Cost of Risk/ 325 Other Economic Considerations / 326 Review Questions / 329 Further Reading/ 330 PART 5: FOREST ECONOMICS IN GLOBAL PERSPECTIVE 12 Forest Products Trade / 333 Trends in International Forest Products Trade / 333 Comparative Advantage and the Principle of Specialization / 336 Production Possibilities and Terms of Bilateral Trade / 339

6 ix Factors Influencing International Forest Products Trade / 343 The Political Economy of Trade Restrictions / 348 Foreign Direct Investment in the Forest Industry / 350 Review Questions / 353 Further Reading / Global Forest Resources and the Environment / 355 Global Forest Resources / 355 Population, Economic Growth, and the Environment./ 358 Forest-Based Industrialization and Tropical Deforestation / 361 The Role of Forests in Mitigating Global Climate Change / 365 Emerging Issues in Forest Economics / 370 Note/377 Review Questions / 378 Further Reading / 378 Index/380