Assessing timber and non‐timber values in forestry using a general equilibrium framework

Abstract

Net benefits of alternative forest policies are examined using a simulation model that links a model of the biology and economics of the forest with a GE model of the B.C. economy, thereby recognizing the effects of changes in timber supply on prices. Results indicate that: (1) price effects from the GE model reinforce policies oriented towards managing for non‐timber values; (2) carbon uptake values can generally be ignored if other nonmarket values are included; and (3) untargeted incremental silviculture is often uneconomic, but it increases C sequestration by 3,000–13,000 tonnes per year.

Key words:

• Cost‐benefit analysis
• forest management
• general equilibrium model
• climate change
• non‐timber values