Current issue: 54(4)
Under compilation: 54(5)
In 1979, the Federal Research in the United States instituted a so-called ”tight money” policy which led to a decrease in the demand for stumpage. The decrease in demand brought about lower stumpage prices and, consequently, a waning interest in policies to stimulate NIPF production. The authors report on five recent studies on NIPF behaviour and raise concerns that increases in demand for housing may bring new pressure upon NIPF as a source of wood.
In Japan many governmental projects have been promoted during 35 years since 1950, which were most active in the history of our forestry and wood industry. They were pushed forward for and by high economic growth. This article refers to the development of our forest policy and projects in those days. But as for the future of the forest economics, it is an urgent question to develop the comparative study between every nation’s experience. In order to contribute to this problem, the forest policy is divided into three fields and experiences are discussed.
Standard methods of welfare economics are used in a market simulating framework to evaluate policy measures designed to increase future timber supplies. Forest management cost-share programs are examined using this methodology. The differential regional impact of cost-share payments is considered, as is the distribution of these benefits between stumpage producers (owners of forest land) and stumpage consumers (producers of forest products). Previous estimates of the welfare gains that would result from a higher level of forest management cost-share payments in the southern United States are revised to account for the loss of public revenue resulting from lower future prices. A methodology for comparing alternative policy instruments is discussed, and a preliminary, qualitative comparison is made between the use of cost-share payments and alternative policy measures.
An empirical analysis of the Finnish non-industrial private forest owners indicates that forestry extension has an effect on the supply of timber and the use of cutting potentials. This effect appears to be indirect rather than direct. The use of extension services is likely to increase the frequency of timber sales, which in turn, increases the use of the allowable cut via increased volume of actual cuttings. Forestry extension can also be considered as an intermediate variable through which certain background conditions and owner characteristics affect the use of cutting potential.
A methodology to evaluate forestry programs aimed at increasing timber supply from nonindustrial private forests is presented that aggregates the marginal social cost and marginal social benefit of a sample program participants and compares them in a benefit-cost efficiency ratio. The paper exposes a methodology followed to evaluate several forestry programs in Massachusetts, USA, and discusses its advantages and inconveniences compared to the other methodologies that have been used for the same purpose. The marginal analysis is based on detailed property and landowner behaviour surveys which are costly but represent a good standard to compare the performance of other approaches.
The PDF includes a summary in Finnish.
The effects and relative efficiency of alternative forest taxes are analysed theoretically. The Fisherian two-period model of consumption, savings and timber harvesting is extended by incorporating the management intensity decision and deriving the concept of long-run timber supply. The effects of lump-sum (site productivity), realized income (yield) and ad valorem property taxes on short-run timber supply, management intensity, and long-run timber supply are established. As the core of the study, the alternative taxes are compared in order to determine the appropriate forest tax regime in terms of production efficiency. The efficiency criterion generally requires that the excess burden of taxation at any given tax revenue should be kept to a minimum. The study distinguishes between an initially undistorted economy and an economy with pre-existing distortions due to capital income taxation (interest charge deductions). When the effects on forest management decisions of forest and capital income taxes are considered as a whole, a neutral forest taxation is no longer efficient. The non-timber benefits of a forest are incorporated to examine the robustness of the tax results with respect to the objective function. Finally, forest tax issues specific to Finland are considered, and administrational and equity aspects are discussed.
The PDF includes a summary in Finnish.