Define Characteristic of Forestry Economics

The principles and theories of economics apply to forestry just as they do to any other human behavior. This attracts our attention towards “economics of forestry” rather than towards “forest economics”.  

The economics of forestry centers around the question of resource management in respect of forests. It would be better to call forest land management as the hub of the wheel of the economics of forestry while the management of forest products, conservation, distribution, and consumption may be regarded as its spokes. 

The subject matter of economics is man with a study of certain aspects of his own behavior. This is said to be his behavior, “in the ordinary business of life. If this study of human behavior is applied to forest resources, man directly is attached to the field of economics of forestry. But if it is so, why do we need its study as a separate subject? The answer lies in the fact that forestry possesses some characteristics which distinguish it from the remaining economy.

First is the prolonged gestation period which is the most outstanding feature of forestry. The production of timber involves a long gestation.

Secondly, the forest consists of a producing capital and at the same time, it has the character of a store-house. Much timber is, at one and the same time, both capital plant and finished product.

Thirdly, many forest values are not measured directly by existing markets.

Fourthly, forestry is in a high degree an industry which is tied to nature.

Fifthly, the classical economists considered land including forests, as a fixed factor of production. Land is said to be a God-given gift but the supply of forests is not restricted. These can be either afforested or deforested at the will of man.

Sixthly, forestry, like agriculture, fisheries etc., depends on growing products rather than manufacturing them.

Seventhly, wood is a matter which grows on existing trees.