Business, 28.05.2020 05:01, ciera51

Uppose the government would like to introduce a forest policy that delays the cutting of forests in orderto have a larger volume of trees available for carbon sequestration. Specifically, the government would liketo achieve the socially-optimal rotation interval, which considers the non-timber benefits of the forest, byintroducing a severance tax on timber, which imposes a per-unit volume cost ofγon timber harvest. Thismeans that theprivatenet-present-value of all forest rotations is now:

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Uppose the government would like to introduce a forest policy that delays the cutting of forests in...