Open AccessTHE MEASUREMENT OF WELFARE GAINS FROM GENETIC PROGRESS IN FORESTRY: GENERAL EQUILIBRIUM AND DISEQUILIBRIUM RESULTS
Author(s) -
Lüfgren KarlGustaf
Publication year - 1990
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.1990.tb00220.x
Subject(s) - disequilibrium , economics , function (biology) , recreation , general equilibrium theory , welfare , order (exchange) , production (economics) , value (mathematics) , microeconomics , mathematical economics , econometrics , mathematics , ecology , statistics , biology , medicine , market economy , finance , evolutionary biology , ophthalmology
The paper contains an extension of existing results on the economics of tree improvement programs. The properties of the indirect utility function and the present value function are used to derive general equilibrium and disequilibrium cost–benefit rules for marginal projects resulting in an improved production function. Corresponding results for projects resulting in large second order effects in both prices and quantities are also provided, and indirect methods to estimate the net benefits are suggested. It is also briefly discussed how recreational and option values can be dealt with.