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Economic analysis of large scale logging

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Deforestation is a major problem in tropical forests. Deforestation rates have almost doubled during the last decade from 7.6 million hectares per year in 1979 to 13.9 million hectares per year in 1989 (Myere, 1989), to 17 million hectares in 1993 (Dale et. al., 1993). They are expected to accelerate even more in the future. Logging done by enterprises and shifting cultivation are blamed to be the main cause of the deforestation. Logging in Indonesia has been carried out more than 20 years, and millions cubic meters of woods have been extracted from the forests. Government policies on opening logging has multiple objectives: to open remote communities and regions, create jobs, source of income for country development, country defense, etc. Theoretically, logging done by HPHs would not create deforestation because all HPH should apply the Indonesian Selective Cutting and should do regeneration. The process of deforestation is driven by complex demographic, biological, social, and economic forces. Impact of deforestation on the environment are serious, but impoverished people who live surrounding the forest are equally critical problem that need to be solved. Populations are expanding rapidly, but the most fertile and accessible lands are already intensively used. People have no choice but try to encroach forest lands. On the other hand, government policies often exacerbate land scarcity by fostering inequity in land tenure. These and other policy distortions foster the occupation of state forest lands. Measuring impact of government policy is not easy. Practically, most government practitioners give more emphasis on micro-economic issues, marketing and trade get less and macro-economic links receive little or no coverage (Monke and Pearson, 1989). Successful policy analysis requires that the analysis should be conducted holistically. This means that policy analysis should be viewed in a global system. There are links among parameters of farming system, domestic and international markets, and macro-economic policy. An analyst should have to see what feedback and trade off within the whole system impacted by imposing new policies
    Publication year

    2022

    Authors

    Machfudh; Endom W

    Language

    English

    Keywords

    economic analysis, forest management, logging, research

    Geographic

    Indonesia

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