1. 1 7. Ethical Issues in Forestry & Public Land Use Larry D. Sanders Spring 2002 AGEC 4990 Dept. of Ag Economics Oklahoma State University

2. 2 INTRODUCTION Purpose: –to understand the ethical issues related to forestry and public land use Learning Objectives: 1. To review the history of US public forest policy & note the significance of the ethical debate in the concepts of conservation and preservation. 2. To understand alternative value perspectives and value factors for forests. 3. To understand the differences in private and public forest management. 4. To become aware of other key factors in forest resource management.

3. 3 Forest/Public Land Policy Pinchot (Conservation) vs. Preservation (Muir) vs. Unrestricted Development (Big Business) 1891-Forest Reserve Act (public forest reserves from public land; Western US) 1897-Forest “Organic” Act (establishes national forest system for water flow & timber sustainability) 1905-USFS established 1911-Weeks Act (okays purchase of private land for national forests; Eastern US)

4. 4 Forest/Public Land Policy (cont.) 1916-National Park Organic Act (creates NPS & system to conserve scenery, wildlife, historic objects) 1960-Multiple Use & Sustainable Yield Act (MUSYA) (adds watersheds, recreation, wildlife, fishing, hunting, soil concerns to national forests) 1964-Wilderness Act (begins preservation of unique natural areas) 1968-Wild & Scenic Rivers Act (preservation of unique rivers)

5. 5 Forest/Public Land Policy (cont.) 1974-Forest & Rangeland Renewable Resources Planning Act (RPA) (creates planning process) 1976-National Forest Management Act (adds economic, wildlife, wilderness & recreational uses to USFS planning) 1980-Alaska National Interest Lands Conservation Act (ANILCA)(adds 13 national parks, 16 wildlife refuges, 56 mil. Ac. To wilderness system) 1970s-1980s-added to wilderness system thru US 1990s-move to privatize some national forest areas

6. 6 Classification of Forest Values(1) 1. Bengston, D. 1993

7. 7 Value Perspectives in Forestry (Bengston in C&S) Logger: primary value is economic (utilitarian ethic) Professional ecologist: primary value is for life support (sustain ecosystem; utilitarian ethic) Local resident: primary value is moral (intrinsic ethic) Artist: primary value is aesthetic (intrinsic ethic of existence of beauty)

8. 8 Market &Non-market Economic Valuation Applied to Forests Use value Option value Existence value Bequest value

9. 9 Market &Non-market Economic Valuation of Forests (continued) Use Value –Market measurable (i.e., timber, development, fee-based recreation) »Derive market supply (marginal costs) & demand (marginal benefits) to determine efficient level of use –Non-market measurable (recreation use) »Contingent valuation, hedonic pricing, etc. Option Value –Non-market measurable (the right to use the forest in the future) »Contingent valuation, etc.

10. 10 Market &Non-market Economic Valuation of Forests (continued) Existence Value –Non-market measurable (the intrinsic value derived from knowledge that forest will exist in perpetuity, regardless of use by future human generations) »Contingent valuation, etc. Bequest Value –Non-market measurable (the knowledge that future generations will have use access to forest) »Contingent valuation, etc.

11. 11 Private Forest Management Use depends solely on owner choice Profit motive usually rules decision making on use (maximize net present value) Owner typically restricts access to others While property rights evolve, democratic government in market economy reluctant to impose many restrictions on land use/access (“takings”)

12. 12 Public Forest Management Use depends primarily on choices by public & public officials (elected & appointed) Multi-purpose use has evolved as primary purpose for public forests in US--federal & state (maximize net present value) Typical conflict: –Economic development vs. environmental protection –Competing recreation uses Key concepts: Public goods; free riders, time horizon

13. 13 Key Factors in Forest Resource Management Preservation vs. Conservation vs. Development –Intrinsic vs. Utilitarian vs. Utilitarian Ethics Forest Ecology –Intrinsic vs. Utilitarian Ethics Private vs. Public Management –Intrinsic & Utilitarian Ethics Multiple Use –Intrinsic vs. Utilitarian vs. Utilitarian

14. 14 Forest Ecology Ecosystem –Climax Community –Soil Formation & Nutrient Cycling –Carbon Cycling –Hydrological Cycle –Ancient Forests Benefits –Market (Wood & derivatives, Recreation, Mining, Grazing) –Nonmarket (Habitat, Amenities [Option, Existence, Bequest])

15. 15 Multiple Use Forest Management 1. Quantity & quality of other stands key to benefits of specific stand (how unique is it?) 2. Multi-Use Sustained Yield Act (MUSYA)-1960- mandates USFS to manage both timber & non- harvest benefits (recreation, habitat, etc.) 3. Below-Cost Timber Sales—inefficient 4. NPV of all multi-uses > NPV without timbering 5. Old growth (Ancient forests) & ESA critical habitat Special Cases--Nonmarket value may be higher in preservation

16. 16 REFERENCES Bengston, D.N., “The Nature of Value and the Value of Nature”, paper presented to People & Forests: Meeting the Challenge of Tomorrow, November 7-10, 1993.