ABSTRACT
Forest economics is the application of economic principles to a range of subjects extending from management of forest resources through the processing, marketing and consumption of forest products. According to Sills and Abt (2003),“Traditional forest economics is concerned with producers who are assumed to maximize profits subject to production technology and exogenous prices”. C.T.S Nair, Chief of the Forest Economics Service, of the UN’s Food and Agriculture Organization Forestry Department, has written that “Historically most of the forestry knowledge system – which includes research, education, training and extension – has been largely geared to the needs of industrial forestry. In most countries forestry departments were established almost entirely to protect forests and to secure industrial wood supplies to meet domestic or external demand.”
