Current issue: 58(5)
Articles containing the keyword 'economics'
Category : Article
The paper elaborates upon various theories to explain economic development and restructuring in the forested regions of advanced countries. The concepts of communities based on the forest sector and the concept of restructuring are discussed before presenting the diversity of relevant theories. Different theoretical approaches in geography and regional and socio-economic sciences are analysed, and the paper concludes that each theory gives only a partial explanation of restructuring under certain conditions. This paper recommends that an explanatory framework should take into account – in addition to general explanatory factors – sectoral, local-specific and policy-related factors and the role of human agency in attempts to explain restructuring and development.
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Tykkyläinen,
E-mail:
mt@mm.unknown
- Hyttinen, E-mail: ph@mm.unknown
- Mononen, E-mail: am@mm.unknown
The profitability of forestry in the context of recent economic developments in Finland suggest a more systematic analysis of the profit and the cost structure of small-scale forestry than is normally made today. The domestic and international pressure on farming emphasizes the development of rural areas by means of other business than agriculture, in practice this may mean forestry. Financing in terms of the new law concerning agriculture requires projects to be profitable. Thus, the profitability of different lines of production, including forestry, needs to be reported more carefully than is the practice today.
A network of forestry bookkeeping farms covering the whole Austria has existed for 20 years. The organization and the operation of the forestry bookkeeping and the cost accounting system is based on the scientific cooperation and exchange of information between the organizations in charge. The practical experience and recommendations based thereon might be useful for Finland, when implementing a country-wide network of forestry bookkeeping and cost accounting.
The PDF includes an abstract in English.
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Penttinen,
E-mail:
mp@mm.unknown
This paper is a review on the development of sustainable forest management and what has been meant with the term in different times. The article summarises the birth of sustainable use of forests in the world and in Finland, and discusses sustainability in forest management, for instance from the point of view of one forest holding, large clearcuttings performed in Lapland, biological sustainability, business economics and overall planning.
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Kilkki,
E-mail:
pk@mm.unknown
The two introductory books written by emeritus professor William Duerr provide an opportunity to scope the research progress in the forest economic discipline during almost a quarter century. This paper gives a presentation of the books (Fundamentals of Forest economics, 1960, and Forestry Economics as Problem Solving, 1984), and the development of forest economics during the period.
The PDF includes a summary in English.
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Ollonqvist,
E-mail:
po@mm.unknown
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.
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Brooks,
E-mail:
db@mm.unknown
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.
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Löfgren,
E-mail:
kl@mm.unknown
The paper discusses the evaluation of timber production policies with different income (timber drain) schedules. Special attention is given to the temporal smoothness of the income flow. A utility model is formulated in which the objective is to maximize a fixed consumption pattern, and money can be saved and borrowed at different interest rates. We thus have smoothness requirements only for consumption, the capital market then determines the smoothness of the optimal income flow. Present discounted value and maximization of even income flow criteria are special cases of the utility model. Consumption can be maximized by linear programming. A sample problem is presented.
The PDF includes a summary in Finnish.
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Lappi,
E-mail:
jl@mm.unknown
- Siitonen, E-mail: ms@mm.unknown
In forestry, a classical method of evaluating the profitability of an outlay is to calculate the internal rate of return. If there are many outlays and returns over a period, analytical determination of the internal rate is difficult and requires simulation methods. However, if there is only one outlay and one return, the computation is easy. In this paper, some formulae were developed for practical purposes. The equations also show how the return changes as the ratio between the return and the outlay changes.
The PDF includes a summary in English.
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Kärkkäinen,
E-mail:
mk@mm.unknown
The paper reviews the past research in the five major subfields of business economics of forestry. Although the twelve doctoral dissertations in the discipline distribute evenly among the subfields, timber production economics has gained the major weight during the past 10–20 years. The new forest products market development requires the focus be shifted from pulpwood to high quality sawn timber production. Maintaining the current market share requires effective measures to control the wood costs. The article proposes nine research projects relating to these market demands.
The PDF includes a summary in Finnish.
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Keipi,
E-mail:
kk@mm.unknown
The object of the study was to give a tentative indication of the realized economic significance of the principal forest (forestry land) uses in Finnish Lapland. Data concerns the years of the 1970s. Nowadays timber harvesting generates a major part of the total value of production. Recreation (tourism) is in second place. Reindeer husbandry, collection of berries and mushrooms and hunting together produce, in the best years, an output value which is about one fifth of that of timber harvesting. Non-timber uses together produce a rather significant portion on the total value of the integrated forestry output.
The PDF includes a summary in Finnish.
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Saastamoinen,
E-mail:
os@mm.unknown
The article is based on studies made in the Karelian isthmus in 1936-1938 before the World War II broke in 1939. Further studies were not possible after the war when the area was handed over to Soviet Union. Economic data of agriculture and forestry of the farms had mostly been regarded separately in the early economic studies of small farms in Finland. This survey aimed at studying influence of forestry in the economy of a small farm. 141 farms were included in a more detailed survey.
Forestry accounted for in average 38% of total income of the farms in 1937-1938. The farms had sold wood often, the amounts being often small. Good transport connections in the area facilitated the sales. Over 70% were sales at delivered price, and about half of the wood was small-sized timber. According to the results of the survey, forestry was important for the small farms in Karelian isthmus. The farmers could not have made a living without the forests. Hoveter, the farms had had to overuse the forest resources. The wood resources decreased by 18-22% in 1922-1938. They were, however, at the same level as in average in Finland in 1938.
The article includes an abstract in German.
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Virolainen,
E-mail:
jv@mm.unknown
Silva Fennica issue 42 includes presentations held in professional development courses, arranged for foresters working in public administration in 1936. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service
This presentation describes national economy from the forestry point of view.
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Kivialho,
E-mail:
kk@mm.unknown
Category : Article
This article is a review of Finnish forest research in the field of forest economics in the previous 50 years. Forest economics in Finland is comparatively young as an independent field of forest research. Not until 1922 was the office of Professor of Forest Economics established in the University of Helsinki. The Department of Forest Economics was established within the Forest Research Institute in 1928. The article presents the main fields of investigation, namely Finland’s forest resources and forest balance, forest ownership policy, forest legislation and forest taxation, forest labour, forest geography, forest industries and wood transport, marketing of forest products, and business economics of forestry.
The article is published in Finnish in separate PDF Acta Forestalia Fennica vol 70 no 9.
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Heikinheimo,
E-mail:
lh@mm.unknown
- Ervasti, E-mail: se@mm.unknown
- Ahonen, E-mail: la@mm.unknown
This article is a review of Finnish forest research in the field of forest economics in the previous 50 years. Forest economics in Finland is comparatively young as an independent field of forest research. Not until 1922 was the office of Professor of Forest Economics established in the University of Helsinki. The Department of Forest Economics was established within the Forest Research Institute in 1928. The article presents the main fields of investigation, namely Finland’s forest resources and forest balance, forest ownership policy, forest legislation and forest taxation, forest labour, forest geography, forest industries and wood transport, marketing of forest products, and business economics of forestry.
The article is published in English in separate PDF Acta Forestalia Fennica vol 70 no 10.
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Heikinheimo,
E-mail:
lh@mm.unknown
- Ervasti, E-mail: se@mm.unknown
- Ahonen, E-mail: la@mm.unknown
The article summarises the career of Eino Saari, professor of forest economics at the University of Helsinki on his 60th anniversary. He is the founder of forest economics research in Finland, and has developed the theory of forest balance. He abandoned the traditional static view of the forest balance and developed a new dynamic conception.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The PDF includes a summary in English and Swedish.
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Finnish Society of Forest Science,
E-mail:
info@metsatiede.org
The article contains three parts and a summary. The first part presents the common foundations of forest economics and forest management. The second part critically discusses the concept of sustainability and the third part takes critical view on the theories on profitability.
The author concludes by stating that the literature shows there are some old principles of forest management that always arise when the forest science progresses. The economics of forest management has been neglected in the sense that it should be acknowledged as self and not as mathematical problem as it has been handled in many theories of national economy, e.g. land rent theory. The science seems the turn back to previous findings as they are proved right again.
The PDF contains a summary in German.
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Hagfors,
E-mail:
eh@mm.unknown
Studies by G. König are the main source for the profitability theories of forestry. He was one of the first economists developing the forestry practices more towards profitability aspects. His doctrine presented the first steps of current forest related trend of ideas and hence so significant in the later development of the discipline.
The article presents the life of G. König and two of his most important works: “Anleitung” (introduction) from the year 1813 and “Forstmathematik” (Mathematics of forest) from years 1835 and 1854
The PDF contains a summary in Finnish.
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Hagfors,
E-mail:
eh@mm.unknown
The article has two parts: the first are the common principles of forestry and forest economics and the second part presents different theories of forest economics. The aim of the study is to find out how the best possible economic result can be achieved from forest management and use of forest resources.
The first part presents the economic foundations of forestry; the division between following the concept of economic profitability in forestry and forest management; concepts of capital and operating result in forestry; and productivity and profitability. It discusses the idea of economy as a dynamic entity instead of static.
In the second part the different economic theories related to forestry and forest economics are presented. Theory on the highest interest on forest capital, theory of sustained yield management system, land rent theory, theory on forest profitability and dynamic economic theory are discussed.
The PDF contains a summary in Finnish.-
Hagfors,
E-mail:
eh@mm.unknown
The study presents a theory of utility models based on aspiration levels, as well as the application of this theory to the planning of timber flow economics. The first part of the study comprises a derivation of the utility-theoretic basis for the application of aspiration levels. Two basic models are dealt with; the additive and the multiplicative. Applied here solely for partial utility functions, aspiration and reservation levels are interpreted as defining piecewisely linear functions. The standpoint of the choices of the decision-makers is emphasized by the use of indifference curves. The second part of the study introduces a model for the management of timber flows. The model is based on the assumption that the decision-maker is willing to specify a shape of income flow which is different from that of the capital-theoretic optimum. The utility model comprises four aspiration-based compound utility functions.
The theory and the flow model are tested numerically by computations covering three forest holdings. The results show that the additive model is sensitive even to slight changes in relative importance and aspiration levels. This applies particularly to nearly linear production possibility boundaries of monetary variables. The multiplicative model, on the other hand, is stable because it generates strictly convex indifference curves. Due to a higher marginal rate of substitution, the multiplicative model implies a stronger dependence on forest management than the additive function. For income trajectory optimization, a method utilizing an income trajectory index is more efficient than one based on the use of aspiration levels per management period. Smooth trajectories can be attained by squaring the deviation of the feasible trajectories from the desired one.
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Mykkänen,
E-mail:
rm@mm.unknown
Category : Research article
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Zamora-Cristales,
Department of Forest Engineering, Resources, and Management, College of Forestry, Oregon State University, 280 Peavy Hall, Corvallis, OR 97331, USA
E-mail:
rene.zamora@oregonstate.edu
- Boston, Department of Forest Engineering, Resources, and Management, College of Forestry, Oregon State University, 280 Peavy Hall, Corvallis, OR 97331, USA E-mail: kevin.boston@oregonstate.edu
- Sessions, Department of Forest Engineering, Resources, and Management, College of Forestry, Oregon State University, 280 Peavy Hall, Corvallis, OR 97331, USA E-mail: john.sessions@oregonstate.edu
- Murphy, Waiariki Institute of Technology, Rotorua, New Zealand E-mail: glen.murphy@waiariki.ac.nz
- Ralston, Dept of Forest Ecology and Management, University of Wisconsin, Madison, WI 53706, USA E-mail: rr@nn.us
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Buongiorno,
Dept of Forest Ecology and Management, University of Wisconsin, Madison, WI 53706, USA
E-mail:
jbuongio@facstaff.wisc.edu
- Fried, USDA Forest Service, Pacific Northwest Forest Experiment Station, Forest Inventory and Analysis Program, P.O. Box 3890, Portland, OR 97208, USA E-mail: jsf@nn.us
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Knoke,
Institute of Silviculture and Forest Management, Technische Universität München, Am Hochanger 13, D-85354 Freising, Germany
E-mail:
knoke@wbfe.forst.tu-muenchen.de
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Buongiorno,
Department of Forest Ecology and Management, University of Wisconsin-Madison, 1630 Linden Drive, Madison, WI 53705, USA
E-mail:
Jbuongio@facstaff.wisc.edu
- Kolbe, Department of Forest Ecology and Management, University of Wisconsin-Madison, 1630 Linden Drive, Madison, WI 53705, USA E-mail: ak@nn.us
- Vasievich, USDA Forest Service, North Central Forest Experiment Station, 1407 S. Harrison Road, Suite 220, East Lansing, MI 48823, USA E-mail: mv@nn.us
