Economics of forestry

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NR 643- Economics of forestry Step 1 consists of identifying a forestry economics problem in New England, the US, or the world, example: • Assessing the economic impact of an invasive species – such as glossy buckthornin New Hampshire white pine forests; • Economic evaluation of two forest wildfire control programs; • Economic evaluation of the introduction of timber species in coffee or cocoa farms in Colombia or Costa Rica; • The present or potential economic impact of invasive species (Asian Longhorn Beetle, Asian Bush Honeysuckle, Thousand Canker Disease) on a timber industry or private landowners; • The potential economic impact of Endangered Species Act on the US timber industry with an application to the Northern Long-eared bat protection. • Assessing the costs and benefits of a particular forest management practice. Step 2 consists of finding and summarizing one or two example studies in extension or journal publications that you can follow when constructing your analysis. You can either follow the study to conduct your own analysis or follow it to replicate the results they obtain, using the authors’ parameter values and data. Example studies include: • http://extension.psu.edu/natural-resources/forests/finance; • http://extension.missouri.edu/p/G5021. • http://forestry.ces.ncsu.edu/forestry-economics-and-taxes. • http://www.fs.fed.us/fmsc/ftp/fvs/docs/gtr/EconUserGuide.pdf. Step 3 consists of identifying the right economic tools for your question (e.g., cost benefit analysis; optimization); make sure these are the same tools used in the example study you chose to follow. Step 4 consists of identifying the appropriate data for the analysis and resources that can help you get it (professors, county forester, librarian, authors of extension or journal publication you are following, etc.). Here, also, make sure you are identifying similar data to the data in the study you decided to follow. Step 5 consists of conducting the analysis and obtaining the results that help you answer the question you formulated in Step 1; Step 6 consists of writing a report of no more than 4 pages, single space, 12 pt. font, excluding figures, tables, references, and appendices. Make sure you submit the spreadsheets you used to generate the results. 1
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Attached.

Surname 1

Name
Professor
Course
Date
Economic Forestry
Invasive species can cause economic, ecological and social havoc on scales that range from native
to worldwide. These impacts include; loss of community relationships, native destruction of
species, a complete change of ecosystem function and structure and decreased biomass of local
species. Furthermore, alien species cause massive economic costs in terms of control. This
economic cost has been assessed to be $138 billion in the US alone (Beschta et al, 103).
Economic methods of forest management practices are significant for assessing different
silvicultural prescriptions, including cost-efficient measures for maintaining, restoring, and
enhancing wildlife habitat. In 1980’s, two computer programs CHEAPO 11 and CHEAPO were
established in order to quantify economic effects. CHEAPO 11 and CHEAPO were developed to
function after the accomplishment of an FVS simulation (Creedy & Wurzbacher, 81). The
weakness of the CHEAPO system was that it no interaction with the management and biological
components that were controlled in FVS. This lack of interface made an economic study of
silvicultural activities extremely cumbersome and time-consuming.
The economic tools that were used in cost and benefit analysis under The National Forest were:
a) Carbon sequestration
b)

Landscape

Surname 2

c)

Regeneration

d) Recreation
e)

Biodiversity and Wildlife

f) Timber production
The table below shows the data on the area of National forest expansion between the years 1991- 2100

1991
1992
1993
1994
1995
3,109
1996
1997
1998
1999
2000
2001
2002
2003
3,109
2004
2005
2006
2007
2008
2009
3,109
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023

Total area
50,200
50,200
50,200
50,200
50,200

Preexisting
woodland
3,109
3,109
3,109
3,109

Total new
New
forest
woodland
0
0
348
244
487
696
7 31
1 ,044
1 ,392
9 75

Total
NEW
348
696
1,044
1,392

new
open
total
habitat forest area
0
3,109
104
3 ,457
209
3 ,805
313
4 ,153
418
4 ,501

% forest
cover
6.2 %
6.9 %
7.6 %
8.3 %
9.0 %

50,200
50,200
50,200
50,200
50,200
50,200
50,200
50,200

3,109
3,109
3,109
3,109
3,109
3,109
3,109

1
2
2
2
3
3
3
4

,740
,089
,437
,785
,133
,481
,829
,177

1,218
1,462
1,706
1,949
2,193
2,437
2,680
2,924

1,740
2,089
2,437
2,785
3,133
3,481
3,829
4,177

522
627
731
835
940
1,044
1,149
1,253

4 ,84...


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