1. What is natural resource economics & why is it important?

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7.
Ethical Issues in Forestry & Public Land Use
Larry D. Sanders Spring 2002 AGEC 4990
Dept. of Ag Economics
Oklahoma State University
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INTRODUCTION
Purpose:
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to understand the ethical issues related to forestry and public
land use
Learning Objectives:
1. To review the history of US public forest policy & note the
significance of the ethical debate in the concepts of conservation
and preservation.
2. To understand alternative value perspectives and value factors
for forests.
3. To understand the differences in private and public forest
management.
4. To become aware of other key factors in forest resource
management.
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Forest/Public Land Policy
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Pinchot (Conservation) vs. Preservation (Muir) vs.
Unrestricted Development (Big Business)
1891-Forest Reserve Act (public forest reserves
from public land; Western US)
1897-Forest “Organic” Act (establishes national
forest system for water flow & timber
sustainability)
1905-USFS established
1911-Weeks Act (okays purchase of private land for
national forests; Eastern US)
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Forest/Public Land Policy (cont.)
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1916-National Park Organic Act (creates NPS &
system to conserve scenery, wildlife, historic
objects)
1960-Multiple Use & Sustainable Yield Act
(MUSYA) (adds watersheds, recreation, wildlife,
fishing, hunting, soil concerns to national forests)
1964-Wilderness Act (begins preservation of
unique natural areas)
1968-Wild & Scenic Rivers Act (preservation of
unique rivers)
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Forest/Public Land Policy (cont.)
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1974-Forest & Rangeland Renewable Resources
Planning Act (RPA) (creates planning process)
1976-National Forest Management Act (adds
economic, wildlife, wilderness & recreational uses
to USFS planning)
1980-Alaska National Interest Lands Conservation
Act (ANILCA)(adds 13 national parks, 16 wildlife
refuges, 56 mil. Ac. To wilderness system)
1970s-1980s-added to wilderness system thru US
1990s-move to privatize some national forest areas5
Classification of Forest Values(1)
Forest Value
A conception of "the good"
Instrumental Value
Economic
Value
Life Support
Value
1. Bengston, D. 1993
Non-Instrumental Value
Aesthetic
Value
Moral
Value
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Value Perspectives in Forestry
(Bengston in C&S)
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Logger: primary value is economic (utilitarian
ethic)
Professional ecologist: primary value is for life
support (sustain ecosystem; utilitarian ethic)
Local resident: primary value is moral (intrinsic
ethic)
Artist: primary value is aesthetic (intrinsic ethic
of existence of beauty)
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Market &Non-market Economic
Valuation Applied to Forests
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Use value
Option value
Existence value
Bequest value
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Market &Non-market Economic
Valuation of Forests (continued)
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Use Value
– Market measurable (i.e., timber,
development, fee-based recreation)
» Derive market supply (marginal costs) & demand
(marginal benefits) to determine efficient level of use
– Non-market measurable (recreation use)
» Contingent valuation, hedonic pricing, etc.
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Option Value
– Non-market measurable (the right to use the forest
in the future)
» Contingent valuation, etc.
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Market &Non-market Economic
Valuation of Forests (continued)
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Existence Value
– Non-market measurable (the
intrinsic value derived from
knowledge that forest will exist in
perpetuity, regardless of use by
future human generations)
» Contingent valuation, etc.
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Bequest Value
– Non-market measurable (the
knowledge that future generations
will have use access to forest)
» Contingent valuation, etc.
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Private Forest Management
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Use depends solely on owner
choice
Profit motive usually rules
decision making on use
(maximize net present value)
Owner typically restricts
access to others
While property rights evolve,
democratic government in
market economy reluctant to
impose many restrictions on
land use/access (“takings”)
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Public Forest Management
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Use depends primarily on
choices by public & public
officials (elected & appointed)
Multi-purpose use has evolved
as primary purpose for public
forests in US--federal & state
(maximize net present value)
Typical conflict:
– Economic development vs.
environmental protection
– Competing recreation uses
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Key concepts: Public goods;
free riders, time horizon
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Key Factors in Forest Resource
Management
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Preservation vs. Conservation vs.
Development
– Intrinsic vs. Utilitarian vs. Utilitarian
Ethics
Forest Ecology
– Intrinsic vs. Utilitarian Ethics
Private vs. Public Management
– Intrinsic & Utilitarian Ethics
Multiple Use
– Intrinsic vs. Utilitarian vs. Utilitarian
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Forest Ecology
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Ecosystem
– Climax Community
– Soil Formation & Nutrient Cycling
– Carbon Cycling
– Hydrological Cycle
– Ancient Forests
Benefits
– Market (Wood & derivatives, Recreation, Mining,
Grazing)
– Nonmarket (Habitat, Amenities [Option, Existence,
Bequest])
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Multiple Use Forest Management
1. Quantity & quality of other stands key to benefits
of specific stand (how unique is it?)
2. Multi-Use Sustained Yield Act (MUSYA)-1960mandates USFS to manage both timber & nonharvest benefits (recreation, habitat, etc.)
3. Below-Cost Timber Sales—inefficient
4. NPV of all multi-uses > NPV without timbering
5. Old growth (Ancient forests) & ESA critical
habitat Special Cases--Nonmarket value may be
higher in preservation
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REFERENCES
Bengston, D.N., “The Nature of Value and the Value of
Nature”, paper presented to People & Forests: Meeting
the Challenge of Tomorrow, November 7-10, 1993.
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