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Economic Analysis of Forest Management in Pakistan - A Case Study of Changa Mange and Muree Forest

Author

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  • Ali Abidi, Syeda Ifrah
  • Noor, Junaid

Abstract

Increasing demand of timber along with the rising concerns towards environment create a need to analyze the management system of forests in Punjab. Both natural and planted forests are present in province of Punjab. They are different in nature and thus have different management plans. This study is conducted by taking into account major species of Changa Manga and Murree forests. Dalbergia sissoo, Morus alba, Eucalyptus camaldulensis (from Changa Manga), Pinus roxburghii and Pinus wallichiana (from Murree forest) are the species included in this study. Estimation of NPV (Net present value) and IRR (Internal rate of return) is made to determine the financial performance of management plan. Impact of Interest rate variability and one year delay in revenue is also calculated. The results show that NPV decreases with increase in interest rate and delay in revenue whereas the IRR remain same in both cases. Dalbergia sissoo, Morus alba showed most inefficient results whereas Pinus roxburghii and Pinus wallichiana gave most efficient results. Besides that the existing management plan is not efficient and there is a need of Sustainable Management Plan for forests.

Suggested Citation

  • Ali Abidi, Syeda Ifrah & Noor, Junaid, 2012. "Economic Analysis of Forest Management in Pakistan - A Case Study of Changa Mange and Muree Forest," MPRA Paper 28086, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28086
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    References listed on IDEAS

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    1. Ying, Zhang & Irland, LIoyd & Zhou, Xiaohong & Song, Yajie & Wen, Yali & Liu, Junchang & Song, Weimin & Qiu, Yang, 2010. "Plantation development: Economic analysis of forest management in Fujian Province, China," Forest Policy and Economics, Elsevier, vol. 12(3), pages 223-230, March.
    2. Zhou, Wenchao & Gong, Peichen, 2004. "Economic effects of environmental concerns in forest management: an analysis of the cost of achieving environmental goals," Journal of Forest Economics, Elsevier, vol. 10(2), pages 97-113, September.
    3. Bacha, Carlos Jose Caetano & Rodriguez, Luiz Carlos Estraviz, 2007. "Profitability and social impacts of reduced impact logging in the Tapajos National Forest, Brazil -- A case study," Ecological Economics, Elsevier, vol. 63(1), pages 70-77, June.
    4. Cubbage, Frederick & Harou, Patrice & Sills, Erin, 2007. "Policy instruments to enhance multi-functional forest management," Forest Policy and Economics, Elsevier, vol. 9(7), pages 833-851, April.
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    Cited by:

    1. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.

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    More about this item

    Keywords

    Forest Management; Pakistan; Economic Analysis; NPV; IRR;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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