2002 World Congress of Environmental and Resource Economists

This paper analyses an urgent forest land use problem, where uncontrolled grazing prevents the regeneration of indigenous forests. We develop a forest land use model and identify the socially optimal steady state levels of the forest stock, grazing, and seedling protection. The efficient timber protection strategy may be less than or equal to full protection, depending upon the marginal effect of protection on forest growth. If timber protection is less than the maximum, then the marginal damage of grazing will be positive, resulting in a steady state timber values lower than would prevail if the forest were reserved for timber only. The value of grazing more than makes up for the lost timber revenues, illustrating that multiple use forestry can provide an economically efficient solution if the correct management strategy is implemented. Various policy solutions are proposed and discussed, including timber revenue-sharing options. The theoretical results are validated using the example of the sal forests of Nepal's Terai region.



	Paper Title:	Sustainable Multiple-Use Forest Management: An Analysis Of The Terai Forests Of Nepal
	Presenting Author:	Pamela J Mason (Simon Fraser University)
	Coauthor 1:	Duncan J Knowler
	Coauthor 2:
	Coauthor 3:
	Abstract:	This paper analyses an urgent forest land use problem, where uncontrolled grazing prevents the regeneration of indigenous forests. We develop a forest land use model and identify the socially optimal steady state levels of the forest stock, grazing, and seedling protection. The efficient timber protection strategy may be less than or equal to full protection, depending upon the marginal effect of protection on forest growth. If timber protection is less than the maximum, then the marginal damage of grazing will be positive, resulting in a steady state timber values lower than would prevail if the forest were reserved for timber only. The value of grazing more than makes up for the lost timber revenues, illustrating that multiple use forestry can provide an economically efficient solution if the correct management strategy is implemented. Various policy solutions are proposed and discussed, including timber revenue-sharing options. The theoretical results are validated using the example of the sal forests of Nepal's Terai region.
	Link to paper:	Not available

	Session / Day / Time	2C / Monday / 10:15 - 11:45 am

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