Forests

Question 1

What does a growth function look like for a stand of trees

Answer 1

s curve (quantity vs age)

Question 2

what does a marginal growth function look like for a stand of trees

Answer 2

Downwards curve U (volume vs time)

Question 3

optimal rotation pattern

Answer 3

finding the cut date for every rotation

Question 4

does a bare piece of land that is going to be a forest have an opportunity cost

Answer 4

YES-
ag
plant forest

Question 5

How to maximize sustained yield

Answer 5

the rotation length that maximizes the val of timer harvests forever

Question 6

When is the max sustained yield

Answer 6

when the average harvest per year is the greatest

Question 7

optimal forest rotation

Answer 7

the cut date that maximizes the present value of the accumulation of beenfits and costs of the forest

Question 8

we should wait to harvest trees as long as

Answer 8

the valueof harvest today is more than the present value of harvest one year from today

Question 9

when the marginal benefit of waiting equals the marginal cost of waiting

Answer 9

the forest will be cut

this is the optimal rotation cut date

Question 10

know graphs for chapter 9

Question 11

does the optimal harvest rotation increase or decrease with the introduction of an endangered species

Answer 11

increase in time

Question 12

When on a graph is it apparent that it’s optimal to never cut a forest

Answer 12

marginal benefit of waiting doesn’t cross marginal cost of waiting

Question 13

fig 1- what’s the optimal cut date if nothing changes

Answer 13

C

Question 14

fig 1-what is line x

Answer 14

marginal cost of waiting

Question 15

fig 1-what is line y

Answer 15

marginal benefit of waiting

Question 16

fig 1-what is t*

Answer 16

the cut date for every time in the future

Question 17

fig 1- where would the line be if something better for the land increased in value

Answer 17

A

Question 18

fig 1- where would the line be if there was an endaggered species found on the land

Answer 18

B

Question 19

fig 1- where would it be if it was never valuable to harvest

Answer 19

D

Question 20

non timber values of a standing forest

Answer 20

habitat for animals
watershed protection
recreation
carbon sequestration

Question 21

what is fig 1

Answer 21

a model for optimal harvest rotation

Question 22

what would happen if the forest was a habitat for an endangered species

Answer 22

the optimal rotation length would increase

Question 23

fig 2 what is A

Answer 23

demand

Question 24

fig 2 what is B

Answer 24

marginal social cost (marginal private cost + marginal external cost)

Question 25

fig 2 what is C

Answer 25

marginal private cost (without the external cost)

Question 26

what happens when you recognize the non-timber value of a forest for the efficient level

Answer 26

it goes from qm to q*

Question 27

limiting harvests from public forest generates ____

Answer 27

rent

Question 28

how can a government forest service capture this rent

Answer 28

taxing each unit of timber harvested or by auctioning the rights of timber

Question 29

fig 2 what is the rent

Answer 29

P*-intersection of q* and s area of this triangle

Question 30

can a periodically harvested stand sequester more carbon than a stand that is never harvested

Answer 30

yes

Question 31

ways to increase carbon srquestration in forests

Answer 31

reduce tropical deforestation expand forests increase forest density increase production of long lived wood products

Question 32

what is meant by optimal rotation pattern for managing timber harvests on a aprcel of landz/

Answer 32

planting a forest, letting it grow, harvesting it, repeat indefinitly optimal rotation pattern is the length of time we let each stand of trees grow before harvest. The harvest age of each stand is chosen to maximize the net present value of all future timber harvests

Question 33

fig 3 what is the optimal rotation age

Answer 33

t*

Question 34

fig 3 what is the marginal beenfit of waiting another year to harvest the timber

Answer 34

delta V- the additional revenue from one more years timber growth

Question 35

fig 3 what is the marginal cost of waiting

Answer 35

r[(V0-C)+S] opportunity cost of not harvesting this year

Question 36

it is efficient to let the stand of timber grow _______________

Answer 36

as long as the marginal benefit of waiting to harvest is greater than the marginal cost

Question 37

what does fig 4 show

Answer 37

accumulated sequestered carbon on a forest

Question 38

fig 4 how is it possible that an increasing amount of carbon can be sequestered even if the forest is harvested periodically

Answer 38

as forests grow they absorb carbon in the biomass when forest is cut, some sequestered carbon is released and some is stored in long lived wood products new stand of trees grows and adds to the total sequestered carbon cumulative amount of sequestered carbon increases with each rotation

Question 39

how is harvesting an old growth forest like exploiting a nonrenewable mineral resource?

Answer 39

not possible to regrow an old growth forest in an economically meaningful amount of time

Question 40

how is harvesting an old growth forest not like exploiting a nonrenewable mineral resource

Answer 40

forest generates beenfits in its natural state such as erosion control and wildlife habitat. Mineral resources don't generate a benefit in the ground If forests are cut down they can be used for another economic activity. If a mineral is mined, typically nothing can happen with that land

Question 41

fig 5 is a graph of the remaining stock of old growth forests in a country and the per hectare benefits of alternative uses of the land. how is the efficient number of hectares of old growth forests to preserve determined

Answer 41

q* because marginal benefit of remaining old growth is less than the benefit of harvest

Question 42

economic benefit of standing forests

Answer 42

global -carbon sequestration -biodiversity Local -recreation -wildlife habitat -erosion control -tropica forests indigienous people

Question 43

causes of forest transitions

Answer 43

deforestation reforestation afforestation

Question 44

the per hectare beenfit of stnading old growth forests increases as the non timber values of the remaining old growth __________

Answer 44

increase

Question 45

why are the non-timber values of old growth timber typically not expressed in functioning markets

Answer 45

they are non-market calues that aren't easy to calculate or capture can't calculate biodiversity

Question 46

TF non market values can lead to more or less efficient preservation of forests

Answer 46

less

Question 47

undervaluing the benefits from standing old growth forests can lead to higher or lower deforestation

Answer 47

higher

Question 48

what are the causes of illegal harvests of forest

Answer 48

flawed laws that leave room for interpretation- no inscentives for sustainable forest practices, unclear land use lack of resources to enforce laws insufficient data corrupt govt