Old-Growth Forest and Jobs
An optimal control model is constructed where the cutting of old-growth forest generates jobs and adds to the stock of land devoted to "newgrowth," rotational forestry. Welfare is determined by the number of jobs in the forest economy and the stock of old-growth forest, which provides "nontimber" benefits. Starting from a large inventory, the economy needs to determine when it is optimal to stop cutting old-growth forest and preserve what's left. When the economy stops cutting old growth it reaches a steady state where the number of jobs is based on the harvest of timber from new-growth forest. An inventory rule is derived for a general model. For plausable functional forms this rule implies and explicit solution for the optimal inventory of old-growth forest. The specific model is estimated for the Douglas fir region of western Washington and Oregon, where perhaps 17.5 percent of the pre-logging stock of old-growth remains. Estimates of the marginal social value for the remaining stock of old growth range from $2,089 to $7,173 per hectare, depending on the rate of discount. These values should be interpreted as "hurdle values." If a direct valuation method, such as contingent valuation, reveals that the "true" marginal social value is likely to exceed these values, then all remaining old-growth outside the National Parks should be preserved.
|Date of creation:||Aug 1996|
|Contact details of provider:|| Postal: Warren Hall, Ithaca NY 14853|
Web page: http://aem.cornell.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuelson, Paul A, 1976. "Economics of Forestry in an Evolving Society," Economic Inquiry, Western Economic Association International, vol. 14(4), pages 466-492, December.
When requesting a correction, please mention this item's handle: RePEc:ags:cudawp:127903. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.