Forest Economics
Introduction
Hari Sharma Neupane Sr,. Agriculture Economist [Link]. MA, PhD
Aims of course is to:
Improve your knowledge and understanding of forest economics including concepts related to forest policy;forestry business and product marketing Understand the interconnections between forest economics and policies Apply economic evaluation techniques to be effective natural resource managers
Brainstorming and Basic concept (overview)
What do you mean by economics? (A) Why we need to know economic theory and principles ? (B) What are the major discipline of the economics? (C)
(A)------Economics is the efficient allocation of resources and profit/output maximization -------Very simply: science of choice and firm (B)-------Resources are scares, thus it helps to efficient use of resources to meet our choices/wants properly (C)-----
Economics and Development studies Adam Smith (1776) also considered
first development economist. His first treatise Wealth of Nation described the systematic study of problems and processes of economic development in Africa, Asia and Latin America Marxist Economics: theory of surplus value and socialist economicscentralized economy Recent developments in theories of poverty trap, role of institution
Traditional Economics: efficient and least cost allocation of scarce productive resources and optimal growth of these resources over time for ever expanding range of goods and services, advance capitalist world of perfect market; consumer sovereignty, automatic price adjustment, marginal cost and marginal profit, economic rationality Political economy: goes beyond traditional economics with role of social and institutional processes; influence of elite and political institution in scarce
Concept and Scope of Natural resource economics
Concept and Scope of Natural resource economics
Concept and Scope of Natural resource economics NR economics is the study of the allocation of scarce natural resources and environmental services/facilities Must maintain a societal perspective. Most natural resource questions cannot be adequately addressed if viewed from the standpoint of an individual or single firm Study of natural resources must consider allocation of resources over
NR Economics draws heavily on three other economic fields Micro Theory efficient production from resources at a point in time Capital Theory NR economics parallels the dynamic study of investment and growth of stocks of capital theory Welfare Economics the allocation of goods and services within a society (ownership, equity, and distribution) NR issues are multi-disciplinary in nature and potential for long term decision
Aspects to resource problems
Physical what is technically possible? (depends on supply of resources and production possibilities or state of technology) Institutional what is socially acceptable? (determined by laws, customs and values of society) Economic Which options are economically efficient or optimal? These elements are dynamic- changes
There is debate on definition, however resource economics is considered as a branch of development economics FORESTeconomics is the application of economic principles to a wide range of subjects management of the various forest resources through the processing, marketing and consumption of forest products outdoor recreation economics and forest
Forest Economics
Forest resource: nine Extensive, visiblefeatures unique and "open"
resources Renewable resources Production capacity : need to wait and living growth Multiple use Forests are both ecosystems and production systems Product and benefit multiplicity Geographical and biological
Figure : Classification of forest and tree products (modification based on FAO NWFP Progam and de Groot et al 2002)
Forest Resources :Introduction
Forest Growth and the Harvesting Problem 1. Supply from Private Forests Determination of rent and land use decision Comparative dynamics of the harvesting decision Total Timber supply. 2. Public Policy Toward Forests Forest supply from public, private and community forests; Managing for conservation Benefits from standing forest services [Link]
Forest Resources :Introduction
Simple Forest Harvesting Problem Notation and Assumptions Harvest Rule Average Annual Timber Supply Harvesting and Replanting Optimal Harvest Rule with Replanting and Re-harvesting The Land Use Decision and Determinants
Forest Resources :Introduction
Service Flow from a Standing Forest Optimal Harvest Age when Service Flow Conservation Forestry approach Deforestation Policy Challenges: global and national, B/C ratio, NPV Climate change
Thanks
