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THE DEVELOPING FRAMEWORK FOR THE ECONOMIC EVALUATION OF FORESTRY IN THE UNITED KINGDOM — A COMMENT
Author(s) -
Price Colin
Publication year - 1987
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1987.tb01069.x
Subject(s) - resource (disambiguation) , investment (military) , consumption (sociology) , economics , resource consumption , natural resource economics , social benefits , discounting , forestry , geography , computer science , finance , political science , ecology , sociology , computer network , social science , materials science , politics , tailings , metallurgy , law , biology
The application of Kula's sum of discounted consumption flows method to forestry investment gives a more favourable result than NPV, but leads to some curious consequences. In particular, the immediate future generation may not be provided with a timber resource by the present generation, while being expected to provide such a resource for its own successors. The method does not in fact treat future generations equitably: downward revision of the social discount rate, possibly to zero, is a better means of achieving this objective.