Canadian Forest Service Publications
Evaluating public forestry investments in British Columbia: The choice of discount rates. 1977. Manning, G.H. The Forestry Chronicle 53(3): 155-158.
Issued by: Pacific Forestry Centre
Catalog ID: 1597
Availability: PDF (download)
In the face of a growing demand for wood fibre from British Columbia forests, intensive public-sector forestry investments may be required. That these investments must compete with others, which may not have as their major objective economic optimization, makes analysis and comparison on a common basis difficult. The choice of discount rate to be used in analysis is critical. One solution is a dual rate approach, with a "social discount rate" being used for long range investments affecting future generations, and a more normal rate being used for harvest scheduling.