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Karl Gustaf Löfgren (email)

Effects of permanent and non-permanent forest policy means on timber supply.

Löfgren K. G. (1986). Effects of permanent and non-permanent forest policy means on timber supply. Silva Fennica vol. 20 no. 4 article id 5289. https://doi.org/10.14214/sf.a27745

Abstract

To conduct an efficient forest policy, both a normative and a positive theory are necessary. In addition, however, the explicit intertemporal considerations in natural resource economics demand that it is made crystal clear which means are permanent and which are non-permanent. The permanent case is far from easy to solve.

That the theoretical problems have practical relevance is shown by Swedish experience. A practical course of action is to weight possible positive effects from a permanent subsidy against possible deleterious outcomes. It is also desirable to avoid jerkiness in forest policy, which is likely to create uncertainty about the permanence of permanent means.

Law may sometimes be more efficient in creating ”credibility” than economic incentives. Regeneration has been mandatory in Sweden since 1903, and nobody refrains from cutting because he believes that regeneration duty will be abolished in some near future.

Keywords
forest policy; forest legislation; forest owners; Sweden; subsidies; private forestry; natural resource economics

Published in 1986

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Available at https://doi.org/10.14214/sf.a27745 | Download PDF

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