Different Economic Approaches in Forest Management

Abstract

The management of forests is directly related to the landowner’s objective, and to some extent, the type of economic system employed by the landowner. The system used to manage government forests is typically different than that used by industrial landowners. Likewise, the system used by large estate owners may differ from that used by industry. Therefore, the management of forests is directly affected by the individual’s attitude toward money.

In this chapter, I describe seven approaches to the management of forests. The “slash and burn” approach is taken when forests are considered a liability. The “cut-out and get-out” approach is taken when the resource is exploited for short-term economic gains. A “stay and plant” system involves taking a long-term view of economic investments. Some “estate-owners” manage their forests using an “annual spreadsheet” approach (where only annual costs and income is considered). “Urban development” may occur where the “land expectation value” is lower than the “real-estate” value of the land. Government forests that are managed as “wilderness” are typically left alone with no timber harvesting or road building. Timber harvest are permitted on some “managed forests” that are owned by governments or non-government organizations. Additional management approaches exist but most of the world’s forests generally fall into these seven categories.