Using estimates of the rents in the BC wood products industry, we demonstrate that the BC stumpage system is not flexible to change in the value of the rent and suggest ways to improve the present stumpage system. The potential strengths and weaknesses of each approach to forest management policy are examined. The conclusion is that a combination of these approaches is required if we are to successfully integrate economic development of forestlands with environmental concerns. In British Columbia, regulations to protect nature have been implemented with little or no economic analysis. This paper provides an analysis of one set of regulations, British Columbia's Forest Practices Code.
Social benefits are less than costs.
Sivaguru Sahajananthan, David Haley and John Nelson Planning for Sustainable Forests in British Columbia through Land Use Zoning Economic theory suggests that managing every hectare of forestland for multiple products, which is occurring in British Columbia, is inefficient. Using a case study for the Revelstoke area of the province, we demonstrate that spatially separating commercial timber activities from non-timber ones can lead to higher timber rents, while affording better environmental protection, including protection of critical wildlife habitat. Zoning provides an incentive to invest resources in intensive management in areas dedicated to commercial timber production, while enhancing the flow of other resource values from the unit as a whole. With zoning it is possible to avoid areas where visual and environmental amenity values are particularly sensitive, which is not possible with current, multiple-use management regimes. By focusing timber production, it is possible to reduce the forestland base, required to maintain current levels of harvest, by over 50 percent.