Faustmann model aplicability to forest protection

M. A. Mendoza, S. E. Cespedes

Abstract


Managerial theory; basic support for forest management economy, is also applicable to the rational allocation of scarce inputs in forest protection programs. Forest protection economy is more complex because there is no marketable products, provided forest protection aims to avoid catastrophic events and to reduce damages caused by pests, diseases and other destructive agents. To quantify avoided damages is an elusive goal, but necessary in order to justify protection budgets. We propose the use of economic concepts of actuarial theory on insurance against disaster from the point of view of economic rationality. Using this idea, we try to demonstrate that forest protection decisions can be made from the concept of integrated management of forest resources.

Keywords


Forest protection; forest management; Faustmann model





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