How far can Market Prices Guide Forest Management Decisions? : Integrated Sustainable Multiple-use Forest Management under the Market System. Proceedings from IUFRO International Conference

Kopenhagen

1992

S. 73-79

7 Lit. Ang.

Bandaufführung

76566

Market prices as generated under the system of "social market economy" in Germany are very well suited in general to indicate scarcity and to allocate goods according to their optimal use. This is also true in forestry. Therefore management decisions can widely rely on market information in the context of decision alternatives in marketing and in short term production processes. Problems arise in connection with the evaluation of long term production as well as with incomplete cost accounting when dealing with long term effects of timber harvesting operations. Also misleading informations are induced by production of public goods and - as it is the case in forestry - negative externalities of industrial production. Finally reasons are discussed of a low price elasticity of supply as it can be observed in central european forestry.