Seppo Vehkamäki

The economic basis of forest policy: a study on the goals and means of forest policy

Vehkamäki S. (1986). The economic basis of forest policy: a study on the goals and means of forest policy. Acta Forestalia Fennica no. 194 article id 7640. https://doi.org/10.14214/aff.7640

Abstract

The goal-setting in forest policy and the means available for achieving the desired goal of forest policy are examined in this study. Examination of the goal is done using a macromodel of a closed economy. In the model GNP is assumed to be linearly dependent on the supply of raw wood. The model is used to derive the marginal conditions of the optimum equilibrium forestry with respect to the growing stock and the silviculture. The effect on the forest owners’ behaviour of the following means are examined: the taxation of ”pure income” from forestry, the taxation of income from selling raw wood, unit sales taxation and ad valorem sales taxation of forestry and corresponding sales subsidies, the support of silvicultural investments and the channelling of income from wood sales into silvicultural investments. The marginal conditions have been defined according to the maximum principle. An empirical study concerning the raw wood market in the case of softwood logs, and silvicultural investments in the case of young stand tending, has been carried out on the basis of the theoretical examination.

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Keywords
forest policy; forest ownership; forest taxation; wood supply

Published in 1986

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