Economic Theory and Forest Policy Available to Purchase

It is well known that a free market system produces an optimal welfare solution for society if the economy is strictly competitive. It is also well known that if the economy is characterised by a monopoly, incomplete information or public goods, then a free market system results in market failures and non-optimal solutions.

Forestry is an activity which contains a large portion of public goods and services. Further, the long rotation period gives plenty of room for incomplete information on prices and biological effects. Accordingly, a free market system in forestry is likely to produce market failures of significant magnitudes....