Forests Market And Intervention Failures

The economic value of forest. has long been recognized, but the ways in which that value is calculated and the management policies adopted in consequence have all too often resulted in overuse and irreversible destruction. This is spectacularly obvious around the Mediterranean basin, but it is also true in northern Europe. These five case studies, commissioned by the OECD, examine failures of forest management in Britain, Spain, Italy, Germany and Sweden. They look at both market and intervention policies and show how each can further the destruction of the forests, and they set out ways in which future policies can evade the mistakes of the past. Originally published in 1992

First Published in 2009. Routledge is an imprint of Taylor & Francis, an informa company.

Timber markets in the United States are areas where timber prices tend to be uniform because of the continuous interactions of buyers and sellers. These markets are highly competitive, volatile, and change relentlessly. This paper looks at how market interactions in the Pacific Northwest have responded to changes in underlying determinants of market behavior and government actions that have influenced supply or demand. Several messages emerge from timber markets about price reporting and changing definitions of price, long-term price trends, timber as an investment, impacts of market intervention, relations among different markets, and implications for future stewardship. The enduring message is that landowners and managers respond to price signals arising from market interactions, and their actions create the forests inherited by future generations.

Economics and forest economics. Importance of forests and forest industries to a country. The production function. The concept of demand. The market. Imperfect competition. Trade in forest products. Time preference. Valuation of a forest property. Rent and stumpage. The forest management firm. Optimal economic rotation. Multiple product management. Intensive and extensive management. Principles of economics in land-use planning. Linear programming in forest economics.Non-timber products of forestry. Market failure and government intervention. Uncertainty and economic decisions. Project evaluation.Some public policy issues.