Shashi Kant

R. Albert Berry

Forest resources are an ideal starting point for economic analysis of sustainability. In this book, leading economists discuss key aspects of sustainability and sustainable forest management including complexity, ethical issues, consumer choice theory, intergenerational equity, non-convexities, and multiple equilibria. This systematic critique of neoclassical economic approaches is followed by a companion work, Institutions, Sustainability, and Natural Resources: Institutions for Sustainable Forest Management, Volume 2 in the series.

Economics of Sustainable Forest Management

Economics, Sustainability, and Natural Resources

The current paradigm of forest economics is based on Faustmann Formulation (FF) of land expectation value proposed by Martin Faustmann. It was a great achievement by a forester to propose a formulation that captures some fundamental economic features of capital theory which. However, the followers of the FF approach have trapped themselves into the past, and have not shown any indication of economic acumen of the great Faustmann. This has resulted in a common problem in the current paradigm of forest economics, known as Faustmann Forest Resource Economics (FFRE), to prescribe the application of a single (FF) approach to all situations irrespective of the specific features of the situation. The current state of forest economics is similar to that of neoclassical economics, and is full of inefficiencies. In neoclassical economics, inefficiencies are due to its “locked-in” position in rational economic man, while in forest economics inefficiencies are due to its “locked-in” position in the FF. The focus of this volume is on the new paradigm of forest economics termed as Post-Faustmann Forest Resource Economics (PFFRE). The first chapter lays the foundation of the PFFRE, and presents the key distinctions between the FFRE and the PFFRE. The volume includes twelve other chapters that address issues related to forest economics from perspectives different than the FFRE. Chapter 2 to 6 are focused on issues related to human behavior that is different than the rational economic man, Chapter 7 and 8 on public choice theory, Chapter 9 and 10 on systems approaches, and Chapter 11 to 13 on incremental approaches to incorporate new features in the FFRE.

Post-Faustmann Forest Resource Economics

Janaki Alavalapati

It is increasingly recognized that the economic value of forests is not merely the production of timber. Forests provide other key ecosystem services, such as being sinks for greenhouse gases, hotspots of biodiversity, tourism and recreation. They are also vitally important in preventing soil erosion and controlling water supplies, as well as providing non-timber forest products and supporting the livelihoods of many local people. This handbook provides a detailed, comprehensive and broad coverage of forest economics, including traditional forest economics of timber production, economics of environmental role of forests, and recent developments in forest economics. The chapters are grouped into six parts: fundamental topics in forest resource economics; economics of forest ecosystems; economics of forests, climate change, and bioenergy; economics of risk, uncertainty, and natural disturbances; economics of forest property rights and certification; and emerging issues and developments. Written by leading environmental, forest, and natural resource economists, the book represents a definitive reference volume for students of economics, environment, forestry and natural resource economics and management.

Shashi Kant

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