- Why is the discount rate important in determining whether a private owner will clear cut timber or practice sustainable forestry?
Discount rate is important in determining sustainable forestry because it determines at which rate the present value of the sustainable management alternatives is reduced or higher.
- What is a mean annual increment?
The average growth rate of a forest; obtained by dividing the total weight of timber by the age of the forest.
- Is cutting timber at the maximum mean annual increment economically optimal?
Yes it is because we would clear cut the forest when MAI is maximized resulting in the highest average annual revenues over time.
- How is the economically optimal forestry management determined?
Economically optimal forestry management is determined by finding the cost of harvesting, knowing the discount rate. , and the revenue
- Is the economically optimal forestry management ecologically optimal?
No it isn’t because standing forests are removed from immediate profit and replanting faster-growing trees instead could lead to a loss of biodiversity.
- What is the main cause of tropical deforestation?
Agricultural land and ranching
- How does total forested area tend to change with population density?
By it decreasing as a population becomes more dense
- Is timber management for maximum sustained yield ecologically optimal?
No it isn’t because it displaces and removes the natural forests quicker than it can be regenerated
- How is timber management related to the loss of biodiversity?
by it removing native species resources (food/shelter/etc), while also providing non-native species the opportunity to invade the cleared area.
- What are some the reasons why forests tend to be exploited?
Beef, soybean, palm oil, and wood products
Why are property rights relevant to forestry policy?
It’s relevant by property rights allowing for secure tenure for low-income forest users to have an interest in a continuing flow of income from the forest instead for a maximum short term gain.
- What are some of the positive externalities associated with forests?
Direct-use recreation benefits, ecotourism, flood control, soil stabilization, water purification, pollination by bees, etc.
- How can payment for ecosystem services help promote sustainable forestry?
By providing an incentive to to resource owners to sustainably maintain forests for longevity income instead of short-term profits.
- Why are secure property rights and full pricing relevant to forestry policy?
Secure Property Rights: Long term conservation (forest maintenance, reforestation); positive externalities such as flood prevention and prevention of soil erosion
Full Pricing: Tax breaks for sustainable forestry, limitations on clear-cutting, certification of sustainably produced wood
- What is the potential for demand-side strategies to reduce the demand for wood products?
Consumer awareness programs
Certification of products grown using sustainable forestry practices
How has the global demand for wood and paper products changed over time?
Has steadily increased over time.
How does discount rate affect the optimal harvesting period?
The higher the discount rate, the shorter will be the optimal harvesting period
What are the guidelines for the UN Forum for Forests
- Reverse the lost of forests through sustainable forest management.
- Enhance the economic, social, and environmental benefits of forests
- Significantly increase the area of protected for forests
- Increase the financial resources, including international developed aid devoted towards sustainable forest management
What are the reasons that total forest area is decreasing in many developing countries?
- Failing prices of wood products (timber)
- Technology is improving in the timber industry
- Interest rates tend to be increasing
Institutional failure - Open access to timber resources
- Demographic pressure
