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Intro to Forestry Economics

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Plants often want to grow tall so they can up computers neighbors for sunlight and trees do this better than anyone, how they are able to grow to such impressive heights is because dense woody substance they are made of that we call wood. And you can use wood for everything paper, furniture, pencils, you can burn it which makes heat, you can use their leaves for animal feed.

All they do not necessarily have to cut them down for it the trees themselves alter the habitat where they grow changing the composition love the species, they can attract people who want to get away from the stresses that the city and watch the splendor of nature for a while or they can attract people who wanna shoot the splendor of nature for a while. And the side the recreational hunting something like a billion people rely on forests for food.

The roots of trees wind and take to the soil and help keep the soil in place all the decaying plant matter also helps make the soil stick together so it forms clumps or aggregates, the roots and organic matter together helped build the soil structure creating pore spaces that allows water to flow through and be absorbed better and recharge the water table. The organic matter is a big part of what makes the topsoil the topsoil among many other things that helps hold an exchange nutrients for plants, which makes things grow better there is usually more carbon in the organic matter to the soil than there is in the total above ground biomass.

When you talk about forest sequestering carbon you are mostly talking about the soil depending on the climate it can take decades to centuries to build a nice healthy soil, but after logging without the roots or a steady stream of organic matter you can lose the soil structure the water does not penetrate his wealth week runoff voting the soil which can diminished stream quality and cause floods.

And after things just are not going to be growing as well it all depends on the soil the climate in what the managers are are not doing the end result could be another forests, but if care is in taken the end result could end up being a grassland or even a desert setting the soil back hundreds and hundreds of years. The more trees there are and the longer we leave them the more of the fourth benefits we get, but the more trees the cuts them or would we get there is a trade-off at least in theory impact is force are more often seen as just a source for what or the trees are seen as in the way for using the land for other stuff.

Because there is not always a market for these other benefits from the forks, but there is a market for wood and bland it easy to see how you will gain from topping the word letting it stand to say help the whole town to maintain water quality and prevent flooding is a large personal game mist probably larger than the portion of the collective benefit earned. If you even live in that area and on top of that there is a time preference to have things in the present people tend to discount the future, the tree isn’t changing incisor value would you rather cut it down today or in 10 years you want it today.

Because you could have been using the money in that time or put the money in the bank in 10 years time you would just have more money than if you sold it them, also we could be using the land in that time differ nothing else to grow another treat. So people tend to want to top down for sooner rather than later, check out our other video on discounting for more on that.

Okay so let’s say there is a forest and then whoever in charge decides to let it be cut, chop chop chop to get the money and then try to decide whether they are gonna replant forced it will cost some amount of money and let’s say it will give the same value as the previous harvest.

A forest takes fifty years to reach harvest maturity, the present value on the wood at 5 percent discount rate let’s say which is on the low side for a discount rate would only be eight percent of it is future value. It may not be high enough to justify replanting the forest, so the owner may take the wood forget about that land and try to new forest that they can chop down what they call forest mining or liquidation forest tree.

To a private organization there is money in the trees but it is basically one time pay off since the forest grows so slow, if nothing is done that area after lost your soil. All this other thing that the forest does including the production of wood can be gone for a very very long time you do not tend to see this kind of behaviour, if the forest is own to manage by locals to get all is other benefits.

A local well plant fifty years into the future for the benefit of their community, their children and their culture and their is when you are going to get so much into several practises and look at influences that decision of when to cut down the forest. And look at the none value should be considered to create and economically efficient system.

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