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Analysis of Net Forest Investment in the South, and Projections of Investment for Resources Planning Act Assessments

Investigators:

David N. Wear, Southern Research Station

Description:

This study addresses how to measure net investment in timber production in a large region. Measuring net investment involves accounting for both gross investment (in the form of forest management and growth) and asset depreciation (for example land use conversions and forest mortality). In addition, the measurement of forest investment must account for changes in the species and age class distribution of forests. This study provided the first application of economic index number theory to the accounting of forest resources. The study tracked net investment by both industrial and nonindustrial forest owners in the South. Taken together it appears that net investment has been essentially zero over the past twenty years with investment by the industry just offsetting disinvestment by nonindustrial private land owners. (This research was largely funded by the 1993 RPA Assessment.)

Problem Area(s): Timberland investment

Status: Completed

Products:

Wear, David N. 1994. Measuring net investment and productivity in timber production. Forest Science. 40 (1): 192-208.

modified: 13-MAR-2000
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