The Economics of Modifying Eucalypt Forests

SUMMARY The multiple demands made by society on the eucalypt forests of Australia are increasing and changing in emphasis. Choice between alternative forms of modification and use of these forests must aim to provide the greatest net benefit to society and hence evaluation is needed within an economic framework. Some of the major issues relating to environmental modification of eucalypt forests are examined within such a framework. Choices between preservation and development, between single and multiple use, and between clearcutting and selection systems, are discussed for a eucalypt forest of relatively limited area. Deficencies in the data required for a definitive evaluation of these issues are outlined. Some of the dangers inherent in attempting to generalise results to other localities and larger areas of forest are discussed.