Written by Bill Stewart, University of California Berkeley

The longest running issue in natural resource economics has been the sustainability of the rate of natural resource use (Field 2008). For forests and woodlands, this includes the wood products that dominate the financial values as well as the many other values provided by forests and woodlands. Compared to agricultural and residential lands, forests and woodlands are unique in that a large fraction of the socially valued benefits do not have a market-based value. Forests and woodlands provide more wildlife habitats, watershed protection, and recreational and visual open space values than most alternative uses of the land. For the 44% of U.S. forests and woodlands (excluding interior Alaska and tropical islands) owned by public agencies, the provision of a wide variety of goods and services is set by government policies. For the 56% that is owned by families and businesses, a different mix of products and services is produced based on market prices, the benefits the owners get from the land, and regulations.

With regard to the potential changes to forests and woodlands that could come with changing climate, it is probable that changes in temperature, precipitation, and extreme weather events will alter plant growth, water flows, and the populations of plant and animals that depend on those basic resources. Valuing the changes in terms of natural resource economics requires 1) understanding how climate change will change forests and 2) how markets and public institutions will respond.

References
Field, B. C. 2008. Natural Resource Economics: An Introduction. McGraw-Hill, New York, NY.

Resources Available in Changes in Natural Resource Economics:

• Economics of Forests and Woodlands
• Forest Products
• Ecosystem Services
• Carbon Markets, Management, and Monitoring
• Forest Tourism
• Forest Recreation

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