Valuing the Environment

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DividerCase Study: Biodiversity

Costs and benefits of not logging in the national estate areas of the south-east forests

Benefits

  • Capital and labour cost savings
    • forest management
    • log harvesting
    • log transport
    • sawmilling
    • chip mill
  • Avoidance of damage to natural environment
  • Maintenance of recreation and tourism opportunities in the National Estate
  • Reduced activity by logging trucks
    • avoidance of road pavement damage
    • reduction in air and noise pollution
  • Maintenance of forest suitable for non-timber commercial uses (eg bee-keeping)

Costs

  • Value of forgone sawlogs and pulp logs
  • Economic cost of unemployment
  • Social cost of unemployment
  • Loss of opportunities for some recreation and tourism in the National Estate


Source: Streeting, Mark & Hamilton, Clive 1991, An Economic Analysis of the Forests of South-Eastern Australia, Resource Assessment Commission, Research Paper no. 5, p. 61.

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