In this lecture, we close our discussion of forest/timber economics by putting an "economic rent" lens on the different rotations -- the biological rotation, the Wicksell Rotation, and the Faustmann Rotation (with a model of non-timber benefits). With an increase in opportunity costs, we see an increase in economic rent (which ends up reducing the amount of timber supplied to the market for the same price). This economic rent compensates for the lost opportunity. We then finish the discussion with a pivot to fisheries, which we will have to finish covering next lecture due to time constraints on this lecture.
Whiteboard notes for this lecture can be found at: https://www.dropbox.com/s/8mdl0u26yxh01td/LectureD7-2020-11-17-Economics_of_Renewable_Natural_Resources-Part_4.pdf?dl=0
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