SylbV01-00-00. pmd

693
I. Course Title
: Forest Economic Analysis
II. Course Code
: FRM 602
III. Credit Hours
: 2+1
IV. Aim of the course
Is to provide different aspects forest economics, Issues and dynamics of domestic
and international demand and supply of forestry products.
V. Theory
Unit I
Use of theoretical frameworks of consumer behavior, market equilibrium, efficiency
of perfect and imperfect competition, game theory, and social welfare functions in
decision making about optimization of forest resources; Issues and dynamics of
domestic and international demand and supply of forestry products.
Unit II
Models of optimal resource use – Applications of dynamic programming and optimal
control – Optimal management of forestry resources – Logistic growth – Maximum
sustainable yield – Optimal harvest rule – Regulated and unregulated common
property. Economics of Forest Resource – optimal harvesting of single rotation and
multiple rotation forests.
Unit III
National income accounting – estimation and methods – Issues and methodologies
in green accounting.
Unit IV
Valuation of forestry goods and services – Direct valuation methods – Indirect
valuation methods. Environmental pollution as a case of common property
management- Policy initiatives for improving the management of common property
resources and environmental conservation. Environmental regulation and policies
– market based instruments – economic instruments – pollution charges, taxes,
tradable permits.
VI. Practical
• Efficiency of perfect and imperfect competition – consumer surplus analysis. Game
theory – social welfare function;
• Derivation of the fundamental equation of renewable resources – Estimation of
growth curves and stock dynamics for forestry resources. Simple two period problem
of optimal resource use – optimal rotation;
• National income accounting – methods Environmental Resource Accounting –
Green GDP;
• Direct valuation methods – Indirect valuation methods. Criteria for evaluating
the environment related projects and review of Environmental impact Assessment
(
EIA) techniques;
• Practical considerations and comparison of instruments of environmental policy –
pollution control methodologies.