FRM 120 2ND LESSON UNIQUE CHARACTERISTICS OF FOREST

• Unique characteristics of forestry

  Characteristics that make forestry , forest production, forest management different from others
• They affect the availability and utilization of resources 


  They affect the production of goods and services
• They affect decision making
• "Long production periods"

  Production period in forestry is much longer than in agriculture and industry
• Make investment in timber management difficult because of capital liquidity over many years
• Make political interest difficult to sustain because results materialize long after the term of office expire
• Create intergenerational tradeoffs
• "Complex production relations"

  A forest is an ecosystem
• Many production in a forest or within tree are known
• Many more relations remain unknown
• Unavoidable complication is that multiple forest outputs produce simultaneously
• What we do to one component can affect other components, intentionally or not
• "External benefits and costs"

  Positive externality - if the production and consumption of a good or service benefits a third party not directly involved in the market transaction
• "Negative externality"

  Exists when the production or consumption of a product result in a cost to a third party
• External benefits=positive externality

  External cost= negative externality
• "Renewability/ non-renewability"

  🪄Renewable resources can replace themselves

  🪄Non-renewable resources do not have the capacity to replace themselves
• Traditional view is that forest is renewable but not all attributes of the forest are renewable
• "Unpriced value"

  Many essential forest goods and services do not have markets