Behavioral Economics and Sustainable Forest Management

Jack Knetsch of Simon Fraser University investigates the links between behavioral economics and forest management in the chapter Behavioral Economics and Sustainable Forest Management from the book “Economics, Sustainability, and Natural Resources: Economics of Sustainable Forest Management”, 2005, Dordrecht and New York: Springer, pp. 91-103. Below is the abstract:

Taking account of recent findings that, for example, people value losses more than otherwise commensurate gains, discount future losses at lower rates than future gains, and tend to make choices on the basis of mental accounts, could markedly improve the guidance offered by economic analyses of forest management options. Asymmetrical incentives and restraints facing individuals and organizations favour continued use of earlier views of standard economic assumptions and such evidence is now largely ignored as are issues such as the appropriate choice of measure to use in valuing the various gains and losses being traded off in managing forest lands.

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