Determinants of Forest Policy
Dwiko B. Permadi
Determinants of Forest Policy (1)
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Forest function(s)
Characteristics of Forest Resources
Social Values
Economic Values
Trends…
Forest function(s)
• Meaning of (Forest )“Function”
– Function=embedded use of something due to its
exixtence
• Classification of forest function
– Protection vs. economic
• Nature of Forest Functions
– Mutually exclusive vs. Complementary
Characteristics of Forest Resources(1)
• Type of goods (and services): property of
consumption (rivalry) and exclusion (Savas, 1982)
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Private goods
Toll goods
Common pool resources
Public/collective
• Quiz…
– give an example of four types of goods and services…!
Characteristics of Forest Resources (2)
• Changing one type of goods to another
affected by:
– Social institution
– Government regulation
– Technology
Social Values
• Privatization
– Profit maximizing, individualism
• Property rights:
– Control by individual vs. communal, excludable
• Democracy
– Participation in decision making
• Government intervention
– Market failure due to externalities
• Professional foresters
– The role of scientific forestry
• Question: how do they affect forest policy?
Economic Values
• The economic values of forest goods and
services.
– Use values  direct and indirect market prices
• Extractive values: timber, pine straw, fuelwood, …
• Non extractive values: recreation services, wildlife wathcing,
scenery, carbon storage, …
– Non use values  non market values:
• Their existence reflected not in market price but willingness
to pay and willingness to sell
• Value of forest for future generation (bequest value)
• Question: how do they affect forest policy?
Trends…
• The world is changing: Forest allocation,
management, protection, all determinants
– Maslow’s Hierarchy
– Kuznets' Curve
Maslow’s Hierarchy
Kuznet Curve
Conclusion
• Forest policy influenced by
– The nature of forest resource characteristics
– Social Value
– Economic value
• Type of influences on forest:
– Resources allocation
– Retention/Protection
– Management