Economic Analysis of Forest Management in Pakistan - A Case Study of Changa Mange and Muree Forest

Ali Abidi, Syeda Ifrah and Noor, Junaid (2012): Economic Analysis of Forest Management in Pakistan - A Case Study of Changa Mange and Muree Forest.

Abstract

Increasing demand of timber along with the rising concerns towards environment create a need to analyze the management system of forests in Punjab. Both natural and planted forests are present in province of Punjab. They are different in nature and thus have different management plans. This study is conducted by taking into account major species of Changa Manga and Murree forests. Dalbergia sissoo, Morus alba, Eucalyptus camaldulensis (from Changa Manga), Pinus roxburghii and Pinus wallichiana (from Murree forest) are the species included in this study. Estimation of NPV (Net present value) and IRR (Internal rate of return) is made to determine the financial performance of management plan. Impact of Interest rate variability and one year delay in revenue is also calculated. The results show that NPV decreases with increase in interest rate and delay in revenue whereas the IRR remain same in both cases. Dalbergia sissoo, Morus alba showed most inefficient results whereas Pinus roxburghii and Pinus wallichiana gave most efficient results. Besides that the existing management plan is not efficient and there is a need of Sustainable Management Plan for forests.

• Item Type: MPRA Paper
• Language: English
• Keywords: Forest Management, Pakistan, Economic Analysis, NPV, IRR
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q23 - Forestry; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics ; Industrial Ecology

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