Special issue on forest investments profitability

Abstract

In this special issue, a sample of the papers presented and discussions held are provided. The selected articles are partly presented in the context of the cost–benefit analysis of forests investments. Public budgeting process nowadays requires in most countries a thorough economic analysis of the annual projects and programmes. Forestry institutions are no exception. However, in the public arena and international organisations, the records of appropriate cost–benefit of forestry projects are scant. A recent review of the use of cost-benefit analysis (CBA) by the Independent Evaluation Group of the World Bank which spread the use of CBA to justify development projects, shows that the economic analysis of projects has been diminishing compared to their uses in the 70s. For natural resources, and forestry in particular, the presence of recognised positive externalities seems to have diminished the reason to undertake this analysis. In the context of budgeting constraints encountered by many countries following the 2008 financial crisis, the need for a proper analysis of natural resources investments has been made more acute.

Keywords:

• forests
• cost–benefit
• investment
• externality

Acknowledgements

All the participants to the LEF Biennal workshop are thanked here again as well as all the reviewers of the selected papers in this section.

Notes

1. For a more complete set of the papers presented see the LEF and OEF websites (http://www6.nancy.inra.fr/lef/Seminaires-et-Workshops/Workshops/2012/Workshop-du-LEF)

2. Timber Investment Management Organization.

Additional information

Funding

This work is supported by a grant overseen by the French National Research Agency (ANR) as part of the ‘Investissements d'Avenir’ program [ANR-11-LABX-0002-01, Lab of Excellence ARBRE].