Economic of Forest Resource Use for Timber Production: The Case of East Gippsland

Abstract

Many of Australia's remaining native forest resources exist in a relatively untouched state. The unique characteristics and relative scarcity of these forest resources has caused much public controversy over their use for timber production. The East Gippsland region of Australia contains extensive forest resources which carry a wide range of forest values. For this reason, East Gippsland has been at the centre of the debate over public forest management for the past three decades. Although East Gippsland has been studied many times, there has been no comprehensive research undertaken from the point of view of the forest as a public timber resource. The aim of this research is to determine whether the native forest resources of the East Gippsland region are being used in a socially optimal manner for timber production. To achieve this aim, the research is approached in three stages. Firstly, a clear understanding is developed as to how the forests of East Gippsland are currently utilised for timber production. Secondly, the relevant economic theory is identified which suggests socially optimal solutions. Finally, the economic theory is applied to the particular case of East Gippsland to develop pragmatic policy suggestions.