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Assessing Timber and Non-Timber Values in Forestry Using a General Equilibrium Framework

WithWilliam A. Thompson, G. Cornelis van Kooten, Ilan Vertinsky

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.