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Chapter 11 Storable, Renewable Resources: Forests 11.1 Introduction Main contents: Explore how economics can be combined with forest ecology to assist in efficiently managing this important resource. 11.1 Introduction Characterizing what is meant by an efficient allocation of the forest resource when the value of the harvested timber is the only concern. Model the efficient decision to cut a single stand or cluster of trees with a common age by superimposing economic considerations on a biological model of tree growth. Refine the model to demonstrate how the multiple values of the forest resource should influence the harvesting decision and how the problem is altered if planning takes place over an infinite horizon, with forests being harvested and replanted in a continual sequence, Examine the inefficiencies that have resulted or can be expected to result from both public and private management decisions and strategies for restoring efficiency. 11.2 Defining Efficient Management 12.2.1 Special Attributes of the Timber Resource 12.2.2 The Biological Dimension 12.2.3 The Economics of Forest Harvesting 12.2.4 Extending the Basic Model 11.2.1 Special Attributes of the Timber Resource Timber shares with many other animate resources the characteristic that it is both an output and a capital good. In contrast to many other living resources, however, the time period between initial investment (planting) and recovery of that investment (harvesting ) is especially long. Finally, forestry is subject to an unusually largy variety of externalities, which are associated with either the standing timber or the act of harvesting timber. 11.2.2 The Biological Dimension A biological model of the growth of a stand of trees (see figure 12.1) 11.2.2 The Biological Dimension The mathematical function relating volume to age stand in Figure 12.1 is the third – degree polynomial of the form v=a+bt+ct2+dt3,where v=volume in cubic feet, t=the age of the stand in years,and a, b, c, d, are p
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