Policy, Economics & Administration Flashcards
7 cards from real SAF practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Policy, Economics & Administration flashcards as text
The Faustmann formula in forest economics determines the rotation age that maximizes:
Answer: Land Expectation Value across an infinite series of rotations
The Faustmann formula calculates the Land Expectation Value (LEV) — the present value of bare forest land under an infinite series of optimal rotations.
Which non-market valuation method estimates environmental values by analyzing how property prices vary with nearby environmental conditions?
Answer: Hedonic pricing
Hedonic pricing uses variation in property or wage markets to reveal how much people implicitly pay for environmental amenities such as proximity to forests or clean air.
In forest economics, 'existence value' refers to the value people place on a resource:
Answer: From knowing the resource exists even if they never use it
Existence value (also called passive use value) is the value individuals derive simply from knowing that a resource exists, independent of any actual or planned use.
Price elasticity of timber supply measures:
Answer: How responsive the quantity of timber supplied is to changes in stumpage price
Price elasticity of supply measures the percentage change in quantity supplied relative to the percentage change in price, indicating how sensitive timber markets are to price signals.
Which type of externality most commonly results from private timber harvesting on steep slopes near streams?
Answer: Negative externality from increased downstream sedimentation and water quality degradation
Harvest-related road construction and soil disturbance on private lands frequently impose downstream sedimentation costs on water users who do not compensate landowners for them.
Forest carbon offset programs typically require 'permanence buffers' because:
Answer: Carbon accounting rules require a percentage be held in reserve to cover potential reversals from disturbance or harvest
Permanence buffers (or buffer pools) hold a percentage of credits in reserve to compensate for potential reversals if carbon is released through fire, disease, or other disturbances.
The travel cost method estimates recreation values by assuming that:
Answer: The cost of travel to a recreation site serves as a proxy for willingness to pay for access
The travel cost method uses observed expenditures — time, fuel, lodging — to reach a site as revealed preferences for willingness to pay for recreation access.