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A procedure for economic analysis in forest resource planning at the operational level : a case study… Kofoed, Peter James 1978

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A PROCEDURE FOR ECONOMIC ANALYSIS IN FOREST RESOURCE PLANNING  AT THE OPERATIONAL  LEVEL;  A CASE STUDY ON THE SEYMOUR RIVER RESOURCE FOLIO OF THE KAMLOOPS FOREST DISTRICT by  B.For.Sc.,  PETER JAMES KOFOED U n i v e r s i t y o f Canterbury,  N.Z.,  1972  A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE in THE FACULTY OF GRADUATE STUDIES (Faculty of Forestry)  We  a c c e p t t h i s t h e s i s as conforming to the r e q u i r e d standard  THE UNIVERSITY OF B R I T I S H COLUMBIA April  ©  19 78  P e t e r James Kofoed,.  1978  In  presenting  an  advanced degree  the I  Library  further  for  shall  agree  scholarly  by  his  of  this  written  this  thesis at  the U n i v e r s i t y  make  that  it  freely  permission  for  It  is  financial  for  The U n i v e r s i t y  gain  F~<Oc-e.s\r^ of  British  2075 W e s b r o o k P l a c e V a n c o u v e r , Canada V6T 1W5  of  of  Columbia,  British  Columbia  for  extensive by  shall  the  that  not  requirements  reference copying  t h e Head o f  understood  permission.  Department o f  fulfilment  available  p u r p o s e s may be g r a n t e d  representatives. thesis  in p a r t i a l  of  I  agree  and this  be a l l o w e d  or  that  study. thesis  my D e p a r t m e n t  copying  for  or  publication  w i t h o u t my  ABSTRACT S u p e r v i s o r : P r o f e s s o r D.  play  E c o n o m i c a n a l y s i s o f f o r e s t management  alternatives  an i m p o r t a n t  resource planning i n  British by  Haley  and u s e f u l r o l e  Columbia.  The need  i n forest  f o r economic e v a l u a t i o n i s emphasised  t h e i n c r e a s i n g number o f r e s o u r c e  dominance o f t h e t i m b e r importance o f other  could  conflicts  resulting  from the  i n d u s t r y i n t h e economy, t h e g r o w i n g  forest  resource  u s e s and t h e i n c r e a s i n g  awareness o f t h e consequences o f d i s t u r b i n g t h e f o r e s t  environ-  ment. This  t h e s i s has d e v e l o p e d  economic a n a l y s i s i n t o  a procedure  forincorporating  the o p e r a t i o n a l l e v e l  of forest  resource  planning. An e x a m i n a t i o n dures  of h i s t o r i c a l  showed a l a c k o f e c o n o m i c  and c u r r e n t p l a n n i n g  input.  D i r e c t a p p l i c a t i o n o f t h e economic t h e o r y a l l o c a t i o n was  found  imperfections>  t h e a b s e n c e o f "markets v a l u e s  resource•values, forest  o f resource  t o be i m p o s s i b l e b e c a u s e o f m a r k e t  and b e c a u s e o f i n a d e q u a t e  f o r many  forest  knowledge o f t h e  environment.  The pricing  proce-  availability techniques  procedure. increased  o f timber  was r e l i e d  methods, s h o u l d  with,  systems f o r timber  and s o p h i s t i c a t i o n o f ,  be s t r e s s e d t o a c h i e v e  usefulness o f the procedure To meet t r a i n i n g ,  and shadow-  upon f o r f o r m u l a t i o n o f t h e  Improved a c c o u n t i n g experience  monetary v a l u e s  short-term  and t h e " q u a l i t y "  b u d g e t and i n f o r m a t i o n  c o s t s and shadow-pricing gains  i n the  o f the r e s u l t s . requirements,  r e c o m m e n d a t i o n s i n c l u d e e m p h a s i s on conflicts The  and  where d a t a  areas  i s available  need t o c o n s i d e r the  social  impact  e f f e c t s was  criteria  provided.  impact  A major p a r t of the .of  the procedure  folio  were  t h e s i s was  i n a case  study  of the  of obtaining d e f i n i t i v e  conflicts.  However, w i t h  of  analysis.  forest  planning  stressed.  a comprehensive  i n t h e Kamloops F o r e s t D i s t r i c t .  difficulty  resource  f o r thorough  as w e l l as e c o n o m i c e f f i c i e n c y of social  of severe  Several  application  Seymour R i v e r  resource  T h i s example showed  solutions to forest  e c o n o m i c a n a l y s i s an  resource  i n c r e a s e d aware-  n e s s o f o t h e r p o s s i b l e s o l u t i o n s t o t h e management p r o b l e m obtained, values  the  relative  became a p p a r e n t ,  were i d e n t i f i e d ,  and  importance of the d i f f e r e n t s e n s i t i v e v a r i a b l e s and  the  was  resource  data  deficiencies  management a l t e r n a t i v e s p r o v i d i n g i n c r e a s e d  o v e r a l l b e n e f i t s became e v i d e n t . It  i s recommended t h a t r e a d e r s whose p r i m e i n t e r e s t  the p r a c t i c a l Chapters  VI  analysis  and  historical  aspects of t h i s  and  should  concentrate  V I I ; the d e s c r i p t i o n of the procedure  t h e example.  and  thesis  theoretical  The  earlier  background.  chapters  is in on  for  provide  the  iv TABLE OF  CONTENTS Page  ABSTRACT  i  TABLE OF CONTENTS  iv  L I S T OF TABLES  vii  L I S T OF FIGURES  x  L I S T OF CONVERSION FACTORS  xi  ACKNOWLEDGEMENTS  xii  CHAPTER I  INTRODUCTION  CHAPTER I I  HISTORICAL REVIEW OF FOREST PLANNING IN B.C  CHAPTER I I I 1. 2. 3. 4. 5.  1 RESOURCE 4  CURRENT FOREST RESOURCE PLANNING SYSTEM IN THE KAMLOOPS FOREST DISTRICT . . . . . . .  Environmental P r o t e c t i o n Areas Referrals C o o r d i n a t e d Resource P l a n s Resource F o l i o P l a n n i n g System Economic Input  CHAPTER IV  11 12 14 15 17 . .  20  1. The M u l t i p l e V a l u e s o f F o r e s t s 2. W e l f a r e T h e o r y 3. P r o b l e m s o f M a r k e t F a i l u r e and I n a d e q u a t e . . . . Knowledge  20 21  a) b) c) d)  ECONOMIC THEORY OF RESOURCE ALLOCATION  11  Market i m p e r f e c t i o n s Externalities P u b l i c goods I m p e r f e c t knowledge  4. A v a i l a b i l i t y  24 24 25 25  of Pecuniary Values  27  a) T i m b e r i n d u s t r y b) Non-market v a l u e s c) D i s c r e t e a n a l y s i s 5. Dynamic A n a l y s i s 6. Summary o f F a c t o r s A f f e c t i n g of E f f i c i e n c y Analysis . a) M a r k e t i m p e r f e c t i o n s b) I n f o r m a t i o n c) D i s c r e t e a n a l y s i s  24  27 29 30 31 Practicality  . . . 32 32 33 33  V  Page CHAPTER V 1. 2. 3. 4.  3. 4. 5. 6. 7.  of Forest  39  43  Resource Planning  P r o v i n c i a l and r e g i o n a l l e v e l s o f p l a n n i n g Submanagement u n i t and o p e r a t i o n a l l e v e l s of planning  34 35 38  43  . .  A d m i n i s t r a t i o n and I n f o r m a t i o n C o s t s Model f o r I n t r o d u c i n g Economic A n a l y s i s i n t o F o r e s t Resource Planning  CHAPTER V I I  1. 2.  34  PROCEDURE FOR ECONOMIC ANALYSIS IN FOREST RESOURCE MANAGEMENT AT THE OPERATIONAL LEVEL  Levels a) b)  2. 3.  AND  Planning Objectives Who P a y s t h e C o s t o f E n v i r o n m e n t a l C o n s t r a i n t s . . Stumpage as a M e a s u r e o f E c o n o m i c R e n t G e o g r a p h i c a l A g g r e g a t i o n and D i s t r i b u t i o n . . . . Effects  CHAPTER VI  1.  FOREST RESOURCE ALLOCATION INCOME DISTRIBUTION  EXAMPLE OF ECONOMIC ANALYSIS OF ENVIRONMENTAL CONSTRAINTS: THE SEYMOUR RIVER RESOURCE FOLIO  43 44 45 48  57  Introduction. Environmental Constraints  57 59  a) b) c) d)  59 60 61 61  Federal fisheries F i s h and w i l d l i f e b r a n c h Protection Recreation  The Normal O p e r a t i o n S i t u a t i o n . . S i g n i f i c a n t Environmental Constraints Management A l t e r n a t i v e s . . . . H a r v e s t i n g S c h e d u l e s and T i m b e r C o s t E l e m e n t s and D i s c o u n t R a t e O p p o r t u n i t y C o s t s f o r Timber V a l u e s Foregone . . a)  b)  E f f e c t on a l l o w a b l e c u t i ) F u l l volume commitment i i ) Determination of foregone allowable cut . i i i ) F o r e g o n e stumpage i v ) Employment, v a l u e added and g o v e r n m e n t revenues v) S o u r c e s o f e r r o r - s e n s i t i v i t y a n a l y s i s . Selection logging i ) F o r e s t management c o n s i d e r a t i o n s . . . . i i ) M e r c h a n t a b l e volumes i i i ) Timber h a r v e s t i n g c o s t s iv) S e n s i t i v i t y analysis  62 62 63 64 66 66 66 66 70 70 72 75 76 77 77 81  vi Page c) R o a d i n g . i ) B a s i c assumptions i i ) Procedure i i i ) Results iv) S e n s i t i v i t y analysis d) H a u l i n g c o s t s i ) D a t a and a s s u m p t i o n s u s e d i i ) Results i i i ) Sensitivity analysis e) D i r e c t i o n a l f a l l i n g f) Marking . . . . . g) A d v e r s e s k i d d i n g h) Summary o f f o r e g o n e t i m b e r v a l u e s 8. O t h e r F o r e s t R e s o u r c e V a l u e s  .  . . . .  a) Moose v a l u e s b) Salmon v a l u e s i ) Impacts o f l o g g i n g a c t i v i t y d u r i n g t h e i n c u b a t i o n p e r i o d o f salmon ( w i t h s p e c i a l r e f e r e n c e t o t h e Seymour R i v e r s p a w n i n g ground) 1) E f f e c t s o f l o g g i n g on s e d i m e n t . . . . 2) E f f e c t s o f l o g g i n g on s t r e a m temperature 3) E f f e c t s o f l o g g i n g on o x y g e n l e v e l s . . 4) E f f e c t s o f l o g g i n g on s t r e a m f l o w . . . 5) E x a m i n a t i o n o f e n v i r o n m e n t a l constraints i i ) Population information . i i i ) Partial habitat analysis iv) Subjective p r o b a b i l i t i e s . . . v) Salmon v a l u e s v i ) Four year c y c l e v i i ) R e s u l t s - p r e s e n t v a l u e s o f salmon c o s t s ( a t 10%) v i i i ) Discussion of r e s u l t s 9. D i s c u s s i o n o f E c o n o m i c E f f i c i e n c y o f A l l o c a t i o n - S a l m o n and T i m b e r V a l u e s 10.  Impacts  12. C o n c l u s i o n CHAPTER V I I I  98 99  99 101 101 102 103 104 106 107 108 110 111 112 113 117  . . 121 122  .  CONCLUSIONS AND  98  Resource  Q u a l i t a t i v e Comments on O t h e r R e s o u r c e V a l u e s  11. S o c i a l  83 84 85 87 87 90 91 91 91 92 93 94 95  124 RECOMMENDATIONS  128  LITERATURE CITED  134  APPENDIX I  140  APPENDIX I I  . .  146  vii Page 151  APPENDIX I I I APPENDIX IV  '.  159  APPENDIX V  160  APPENDIX V I  163  viii L I S T OF  TABLES  Table  Page  1  Basic h a r v e s t i n g schedule  2  Reserve s t r i p :  3  Reserve s t r i p : f o r e s t m e r c h a n t a b l e volume  m e r c h a n t a b l e volume i n m sites  Reserve s t r i p :  5  M  6  Present values of foregone a l t e r n a t i v e s a and c  7  and  M  2  by  M.A.I.—allowable  cut  68 (m ). 3  . . .  70  S p e c i e s c o m p o s i t i o n and v o l u m e s i n c o m p a r a b l e s t a n d s : r e s e r v e s t r i p and n e a r b y c u t p e r m i t s .  9  E f f e c t of percentage per m  3  69  stumpage: management  Relevant diameter d i s t r i b u t i o n selection logging  11  and  a r e a s : merchantable volumes  8  10  area  67  3  68  4  ±  65  . .  information for  78  d e c a y on h a r v e s t i n g c o s t  o f firmwood.  79  Percentage decay i n c l e a r c u t operations Present values of  and  selection 80  selection benefits in  M  2  areas 12  13 14  77  81  Example o f d e t e r m i n a t i o n o f p r e s e n t roading costs  value 85  Relative present value roading costs for management a l t e r n a t i v e s Area o f machine b u f f e r s t r i p Seymour R i v e r  adjacent  to  Present values of d i r e c t i o n a l  falling  16  Statistics  population  Seymour s o c k e y e  the .  15  on  86  costs. . . .  1962-1975  92 93  106  17  P r o b a b i l i t y matrix  f o r r e d u c t i o n i n salmon c a t c h .  18  P r e s e n t v a l u e s o f salmon c o s t s f o r t i m b e r h a r v e s t i n g p r e s c r i p t i o n s ( d i m i n i s h i n g harm t o salmon f o r t h r e e y e a r s a f t e r l o g g i n g )  108  112  ix Table 19  20 21 22 23  Page P r e s e n t v a l u e s o f salmon c o s t s f o r timber h a r v e s t i n g p r e s c r i p t i o n s ~(no . d e c r e a s e i n harm t o salmon f o r t h r e e y e a r s a f t e r l o g g i n g )  113  D i r e c t employment 1965-1974.  141  i n t h e B.C.  forest  industry  D i r e c t employment i n t h e f o r e s t i n d u s t r y — Kamloops F o r e s t D i s t r i c t 1967-1976  143  A v e r a g e v a l u e added ( p e r m ) o f l o g s B.C. f o r e s t i n d u s t r y 1965-1974  147  3  harvested—  A v e r a g e v a l u e added ( p e r m ) o f l o g s h a r v e s t e d — B.C. l o g g i n g and wood p r o c e s s i n g i n d u s t r i e s 1965-1974.  148  24  B.C. F o r e s t  152  25  F e d e r a l t a x e s f r o m t h e B.C. 1969, 1971 and 1972.  26 27  3  Service revenues  1965-1976 forest  . 154  P r o v i n c i a l r e v e n u e s from t h e B.C. i n d u s t r y 1969, 1971 and 1972 Firmwood t i m b e r  harvesting  industry  costs  forest 154 162  X  L I S T OF  FIGURES  Figure 1  Page Timber h a r v e s t i n B r i t i s h 1915-1975 . . . . . . •  Columbia 5  v  2  3 4  I l l u s t r a t i o n o f the importance o f assumptions on t h e i m p a c t o f l o g g i n g a c t i v i t y on salmon values.  114  Profiles for reduction f i r s t l o g g i n g pass  115  i n salmon  values f o r  D i r e c t employment i n t h e B.C. f o r e s t 1965-1974 ( m a n - y e a r s / 1 , 0 0 0 m ) . .  industry 142  3  5 6  V a l u e added B.C. f o r e s t  per m of logs harvested i n d u s t r y 1965-1974  149  A v e r a g e B.C. F o r e s t S e r v i c e r e v e n u e s 1965-1976 ( $ / m ) . . . . . . . .  153  3  3  7  Location  o f Seymour R i v e r  Resource F o l i o .  . . . .  8  Seymour R i v e r R e s o u r c e F o l i o : e n v i r o n m e n t a l c o n s t r a i n t s and l o g g i n g z o n e s  164 .  -4-&Er~  L I S T OF CONVERSION To  convert:  Centimetres Metres  (cm)  (m)  Kilometres Hectares  (km)  (ha)  Square k i l o m e t r e s Cubic metres  (m ) 3  (km ) 2  FACTORS  Into:  Multiply  inches  0*394  chains  0*05  miles  0*622  acres  2*471  square  feet  Cubic metres/ h e c t a r e (m /ha)  cubic acre  feet/  K i l o g r a m m e s (kg)  pounds  3  Slight  errors  i n the c a l c u l a t i o n s  errors  i n c o n v e r t i n g from i m p e r i a l  0*386  miles  cubic  are mainly to metric  by  35*351 14*292 2*2046  due t o r o u n d i n g units.  ACKNOWLEDGEMENTS I w i s h t o a c k n o w l e d g e t h e a s s i s t a n c e and a d v i c e p e o p l e who made t h i s In p a r t i c u l a r , positive for  thesis possible.  g r a t i t u d e i s expressed  criticism  provided  by my  f o r the support  P.L. C o t t e l l Special  and J.H.G.  committee  Smith.  S e r v i c e a t Kamloops f o r t h e o p p o r t u n i t y t o  pursue t h e s u b j e c t .  The a s s i s t a n c e a n d i n f o r m a t i o n  other  staff  Service  a t Kamloops i s g r e a t l y  My g r a t i t u d e i s a l s o e x t e n d e d t o t h e p e r s o n n e l various and  resource  advice.  members,  t h a n k s a r e due t o Mr. R. Hughes o f t h e B r i t i s h  Columbia F o r e s t  Forest  and  s u p e r v i s o r , D r . D. H a l e y , and  t h e g u i d a n c e and h e l p f u l comments o f my  Drs.  o f t h e many  a g e n c y o f f i c e s who k i n d l y p r o v i d e d  T h e s e i n c l u d e t h e B.C. F o r e s t  provided  by  appreciated. of the information  S e r v i c e and t h e  E n v i r o n m e n t a l L a n d Use Committee S e c r e t a r i a t i n V i c t o r i a , t h e Fish  and W i l d l i f e  B r a n c h and Canada Manpower i n Kamloops, t h e  Federal Fisheries Service of Forest Pacific  i n Kamloops and V a n c o u v e r , t h e C o u n c i l  I n d u s t r i e s o f B.C. i n V a n c o u v e r a n d t h e I n t e r n a t i o n a l  Salmon C o m m i s s i o n  i n New  Westminster.  1 CHAPTER  I  INTRODUCTION The  recent h i s t o r y of f o r e s t r y i n B r i t i s h Columbia  d i s p l a y e d the i n c r e a s i n g awareness and  concern of man  has  for his  p h y s i c a l environment. The  B r i t i s h Columbia F o r e s t S e r v i c e  (B.C.F.S.) has  intro-  duced techniques f o r i n c l u d i n g the requirements of other resource  uses and  values  dures were i n t r o d u c e d  i n the p l a n n i n g  process.  forest  These proce-  on the premise t h a t any a d d i t i o n a l  p r o t e c t i o n to the environment was  worthwhile as long as  sufficient  timber was  still  a v a i l a b l e to m a i n t a i n e x i s t i n g i n d u s t r i a l  capacity.  B i o l o g i c a l protection within technical c a p a b i l i t y  appeared to be the g o a l .  Economic a n a l y s i s or even  conjecture  on the f i n a n c i a l impact of these environmental g u i d e l i n e s  and  c o n s t r a i n t s on f o r e s t r y , the most important i n d u s t r i a l s e c t o r i n the B.C. and  economy, was,  other  and  f o r e s t resource  the p o l i t i c a l process,  still  i s , l a r g e l y absent from B.C.F.S.  agency procedures.  market c o n d i t i o n s and  I t has field  been l e f t  to  administration  to f i n d some s o r t o f balance i n the a l l o c a t i o n o f f o r e s t land resources. T h i s vacuum o f economic input e x i s t s even though c o s t s f o r environmental c o n s t r a i n t s are h i g h . estimated as an average of $2.01 the order of $100 1975). returned  per m  m i l l i o n per year  Important questions  In 1973 3  these c o s t s were  or a P r o v i n c i a l c o s t i n  (Council of F o r e s t  Industries,  on whether these l a r g e c o s t s  are  i n environmental b e n e f i t s remain unanswered.  The main o b j e c t i v e o f t h i s t h e s i s i s to develop a procedure  2 for  u s i n g economic a n a l y s i s  operational  level.  of the procedure range  Of importance  in a field  o f s u b j e c t matter  planning  i n forest resource planning at the i s t h e example o f a p p l i c a t i o n  situation.  i n e c o n o m i c s and f o r e s t management and  i n t h e development o f t h e procedure.  subjects of w i l d l i f e  and salmon f i s h e r i e s  The  a i m i s t o combine t h e s e d i f f e r e n t  and  u s e f u l model, w i t h i n  and  the imperfections of theory. The  I n t h e example t h e  are also  disciplines  the constraints  o f poor  study begins w i t h a g e n e r a l h i s t o r i c  r e s o u r c e p l a n n i n g i n B.C. attention  In both, t h e absence  planning process i s very  important. into  data  i n t h e Kamloops  o f economic i n p u t i n t h e  noticeable. i s discussed i n  t h e c o n t e x t o f t h e " i m p e r f e c t " c o n d i t i o n s e x h i b i t e d by the inadequacy  economic The  (B.C.  do n o t e x c l u d e  I t i s concluded  "useful" applications of  analysis. importance  particularly timber  forest  o f i n f o r m a t i o n and t h e p r o b l e m s o f  a s s i g n i n g m o n e t a r y v a l u e s t o some f o r e s t u s e s . that these d i f f i c u l t i e s  availability  procedures,  economic t h e o r y o f r e s o u r c e a l l o c a t i o n  resources,  a practical  review of f o r e s t  To examine p r e s e n t  i s narrowed t o t h a t o f a c t i v i t i e s  Forest District.  The  The s t u d y c o v e r s a wide  of the forest  industry  t o t h e P r o v i n c e and  t o many s m a l l c e n t r e s , s u g g e s t s  t h a t changes i n  s u p p l y and c o s t s c o u l d h a v e s i g n i f i c a n t M i n i s t r y o f Economic Development,  social  1976).  impact  Distributional,  as w e l l as e f f i c i e n c y > i m p l i c a t i o n s  o f environmental planning  are important.  examination  environmental  Discussion includes constraints  and t h e d i s t r i b u t i o n a l  o f who p a y s f o r significance  o f stumpage a s a measure o f e c o n o m i c r e n t and t h a t o f g e o g r a p h i c a l  3 boundaries used i n a n a l y s i s . The  c o n c e p t s and  established applying  limitations  i n d i s c u s s i o n , are  used to d e r i v e  already  a procedure  for  economic a n a l y s i s to e n v i r o n m e n t a l c o n s t r a i n t s a t  operational  level.  The  different  forest  environmental planning  levels  are  A  o f economic t h e o r y ,  functions  at the  and  the  requirements  r e g i o n a l and  of  operational  discussed.  large part of this  a p p l i c a t i o n of Seymour R i v e r  the  paper  i s d e v o t e d t o an  costing procedures.  resource  folio  i n the  The  area  example o f  the  studied  the  Kamloops F o r e s t  is  District.  4 CHAPTER I I HISTORICAL REVIEW OF FOREST RESOURCE PLANNING IN B.C. T h i s chapter b r i e f l y t r a c e s the t r e n d o f i n c r e a s i n g environmental  concern from complete i n d i f f e r e n c e through a p e r i o d  o f p r e o c c u p a t i o n w i t h timber management requirements  to the  present attempts a t h o l i s t i c f o r e s t r e s o u r c e p l a n n i n g . F o l l o w i n g t h i s are comments s u p p o r t i n g the c o n t e n t i o n t h a t there i s a s e r i o u s l a c k of economic content i n the resource planning  forest  process.  History The  s i t u a t i o n p r i o r to 1900  from the 1956  i s b e s t d e s c r i b e d by a q u o t a t i o n  Royal Commission Report  B r i t i s h Columbia  (Sloan, 1956,  F o r e s t r y o f 1910  noted t h a t i n the e a r l y days of the p r o v i n c e  timber  lands seem to have had  estimation."  p.19)  on the F o r e s t Resources of "The  Royal Commission on  l i t t l e or no v a l u e i n the p u b l i c  The v a s t n e s s of the f o r e s t s and the  p o p u l a t i o n and  sparse  small i n d u s t r i a l demand d i d not r e q u i r e a  concern  with f o r e s t resource planning. As the 20th Century h a r v e s t e d has dramatic  has progressed t h e volume o f  i n c r e a s e d almost c o n t i n u a l l y and o f t e n i n a  f a s h i o n (Smith and Kozak, 1970).  today are t e n times those logged i n 1915 20 years ago  timber  (Figure 1).  The  Volumes harvested and double those o f  small s c a l e of pre-World War  II  o p e r a t i o n s i n the I n t e r i o r and the r a p i d i n c r e a s e s i n p r o d u c t i o n i n the 1950s and  1960s are n o t i c e a b l e .  Need f o r improved  p l a n n i n g i s r e l a t e d to t h i s i n c r e a s i n g r a t e o f p r o d u c t i o n  and  to changes i n the wealth and demands o f the l o c a l p o p u l a t i o n .  5  6  For t h i s paper two main p e r i o d s may i s t h a t p r i o r to the 1960s.  T h i s was  be d e f i n e d .  The  a p e r i o d of growing aware-  ness o f resource c o n f l i c t s r e s u l t i n g from p r o d u c t i o n practices. almost  forestry  However f o r e s t p l a n n i n g continued to be  e n t i r e l y w i t h timber.  first  concerned  F u l l r e c o g n i t i o n and a t t e n t i o n to  other resource v a l u e s — r a n c h i n g , other a g r i c u l t u r e , f i s h , and r e c r e a t i o n was  p r i m a r i l y through  c o o p e r a t i o n a t the  wildlife  opera-  t i o n a l l e v e l and to a l i m i t e d extent through the s t a t u t e s . view t h a t whatever was  good f o r timber management was  o t h e r r e s o u r c e v a l u e s tended the 1945  and the 1956  to p r e v a i l .  good f o r  F o r example, i n both  Royal Commission Reports  Resources o f B r i t i s h Columbia  The  (Sloan, 1945  and  on the F o r e s t Sloan, 1956)  the  b e n e f i t s o f s u s t a i n e d y i e l d management f o r the p r o t e c t i o n o f  soil,  water and w i l d l i f e were emphasised. O p e r a t i o n a l p l a n n i n g was  concerned  w i t h environmental  a c t i o n o n l y when i t c o i n c i d e d w i t h f a c t o r s d i r e c t l y timber p r o d u c t i o n . c o n t r o l and  affecting  These f a c t o r s i n c l u d e d s i l v i c u l t u r e ,  slash disposal.  inter-  fire  A n o t a b l e example i s the c o n t i n u i n g  search f o r b e t t e r h a r v e s t i n g systems i n the  Interior.  A number o f h a r v e s t i n g systems and c o n t r o l s were t r i e d the main aim of encouraging  natural regeneration.  These i n c l u d e d  a heavy emphasis on p a r t i a l c u t t i n g t o a minimum diameter and s e l e c t i v e marking. types  (Spruce—balsam  The problems o f both i n c e r t a i n  (Sloan, 1956).  p a t t e r n s i n c l u d i n g narrow b l o c k s and t r i e d to enhance n a t u r a l regeneration.  Various  limit  forest  i n p a r t i c u l a r ) are d i s c u s s e d i n the  Royal Commission Report  with  1956  clearcutting  small patches were a l s o These attempts a t s o l v i n g  s i l v i c u l t u r a l and r e - e s t a b l i s h m e n t problems through  manipulation  7 of h a v e s t i n g  systems and methods were l a r g e l y  o f t e n because o f g e n e r a l s i t e and  a p p l i c a t i o n and  species d i f f e r e n c e s  (Smith and  unsuccessful,  l a c k o f knowledge of Clark,  1974  give a  progress r e p o r t of c u t t i n g t r i a l s i n i t i a t e d i n 1950). g r e a t e r h a r v e s t i n g mechanisation and  With  the a v a i l a b i l i t y of  nursery  stock, c l e a r c u t t i n g became dominant i n the I n t e r i o r (1960s) except i n f o r e s t types s u i t e d to s e l e c t i o n l o g g i n g belt  second main p e r i o d , which began i n the l a t e  heralded  sixties,  a growing environmental concern amongst the p u b l i c .  requirements o f f i s h , w i l d l i f e , r e c r e a t i o n , water and  resource  values  i n the  face of a l a r g e and  i n d u s t r y r e c e i v e d more a t t e n t i o n . other resource simply and  dry  fir). The  The  (e.g.  values  I t was  other  growing timber time to c o n s i d e r  i n the f o r e s t p l a n n i n g  process r a t h e r  these than  d e a l i n g w i t h them a t an o p e r a t i o n a l l e v e l as they arose  through l e g a l s t a t u t e s  (e.g. F e d e r a l F i s h e r i e s A c t , R.S.C.  1970). As e a r l y as 1956  the r e f e r r a l system was  introduced  whereby  the B.C.F.S. informed the f e d e r a l f i s h e r i e s a u t h o r i t i e s o f f o r h a r v e s t i n g near salmon streams. h a b i t a t c o u l d then be device  has  s i n c e 1970.  C l a u s e s p r o t e c t i n g the  i n c l u d e d i n the h a r v e s t i n g c o n t r a c t .  fish This  a l s o been a v a i l a b l e to the F i s h and W i l d l i f e Branch I t was  soon found t h a t some means was  required  reduce the a d m i n i s t r a t i v e backlog and a v o i d the d e l a y s the l a r g e number o f requests  made by the l o g g i n g  A broader form o f p l a n n i n g tenures on Crown land was Guidelines  plans  i n 1972  to  caused  by  industry.  c o n t r o l , a p p l i c a b l e to a l l  introduced  (B.C.F.S., 1972).  w i t h the Coast Logging These p r o t e c t i v e measures  i d e n t i f i e d requirements f o r r e t a i n i n g p r o t e c t i v e f o r e s t cover,  8 restricted  t h e maximum s i z e o f c l e a r  percentage  o f a stream  specified  o r l a k e f a c e t o be o p e n e d , and t h e y  a l t e r n a t i v e patch  e x t r a c a r e near streams General  cutting  location  t h e r e has been a g r a d u a l  guidelines.  restrictions,  machine b u f f e r s t r i p  implementation  T h e s e have i n c l u d e d c u t b l o c k requirements  of  size  and s l o p e  limita-  t o ground s k i d d i n g . Considerable  criticism  that  these  than  according to s p e c i f i c The  f o l l o w e d from t h e f o r e s t  g u i d e l i n e s tended  this  conflicts refine  shortcoming  i s an attempt  and p r o b l e m a r e a s  t h e a l l o w a b l e annual  evaluations of different  a t an o p e r a t i o n a l l e v e l cut calculation).  realistic  1974).  detail  T h i s s y s t e m and i t s c o u n t e r p a r t ,  i n the next  and t o f o r m u l a t e The r e s u l t  i n 1973 ( B u l l e n ,  the Coordinated  Resource  s y s t e m a r e d i s c u s s e d i n more  chapter.  T r e n d s t o w a r d s a more s i t e  specific  approach t o o b t a i n i n g the necessary resource  area,  System i n t r o d u c e d  Management P l a n , a n d t h e r e f e r r a l  (as w e l l a s  I t r e a l i s e d the  p l a n s on t h e b a s i s o f a l l r e s o u r c e v a l u e s . Planning  resource  t h e a v a i l a b l e r e s o u r c e and  information of a particular  the Resource F o l i o  site  environmental  to recognise potential  need t o d e s i g n a system f o r c o l l a t i n g environmental  a n d h a s made  The c u r r e n t programme o f i d e n t i f y i n g  p r o t e c t i o n areas  rather  site conditions.  B.C.F.S. r e c o g n i s e d  conditions.  industry  t o be a p p l i e d i n f l e x i b l y  a t t e m p t s t o a l l o w more r e a l i s t i c  is  falling).  a n d d e s i g n were a l s o i n c l u d e d .  environmental  tions  systems and t h e need f o r  (including directional  comments on r o a d  In t h e I n t e r i o r  c u t o p e n i n g s and t h e  field  p l a n n i n g have b e e n f r u s t r a t e d  o r problem o r i e n t e d information f o r  b y t h e l a c k o f manpower  9  and money a v a i l a b l e to the F o r e s t S e r v i c e . on F o r e s t Resources  (Sloan, 1945,  d i s c u s s e d the problem.  Pearse  1956  and  The Royal Commissions Pearse, 1976) a l l  (1976) suggested d e l e g a t i o n o f  o p e r a t i o n a l r e s p o n s i b i l i t y to f i e l d  personnel  and  the  concentra-  t i o n of p l a n n i n g e f f o r t on h i g h p r i o r i t y problem areas  to  over-  come t h i s d e f i c i e n c y . In summary, i t can be seen t h a t f o r e s t resource p l a n n i n g i n B.C.  has progressed  from an e a r l y s i t u a t i o n o f no p l a n n i n g  a c o n s i d e r a b l e p e r i o d of almost s i n g u l a r concern w i t h  timber  requirements to a stage of f u l l r e c o g n i t i o n of other  resource  v a l u e s and attempts to i n t e g r a t e them i n t o the i n i t i a l process. planning  More i n f o r m a t i o n i s needed now  through  t o make s i t e  planning specific  effective.  Economic Input The for  h i s t o r y of f o r e s t r e s o u r c e p l a n n i n g  i n B.C.  i s notable  an absence of economic e v a l u a t i o n . Sloan  research.  (1956) g i v e s a d e s c r i p t i o n o f the then c u r r e n t The  emphasis was  f o r e s t products.  There was  forest  on f o r e s t b i o l o g y , s i l v i c u l t u r e  and  l i t t l e examination o f the economics  o f s i l v i c u l t u r a l p r e s c r i p t i o n s or of resource use c o n f l i c t s  and  environmental impacts of various o p e r a t i o n s . The  l a c k o f economic i n p u t i s a l s o shown by the quest f o r  h a r v e s t i n g systems and methods to p r o v i d e adequate r e g e n e r a t i o n . The to  d e s i r e f o r "inexpensive"  natural re-establishment  push a s i d e r a t i o n a l e v a l u a t i o n o f a l t e r n a t i v e s .  I n t e r i o r d u r i n g the narrow s t r i p s  1950s, one  p r e s c r i p t i o n was  (40 to 100 m wide), running  has  tended  In the  to c l e a r c u t i n  a t r i g h t angles  to the  10 l o g g i n g roads.  The  r e s u l t was  i n c r e a s e d c o s t s o f road  t i o n and maintenance and a tendency t o windblow f u n n e l e f f e c t o f narrow s t r i p ) without  construc-  (longer edge and  a guarantee of adequate  regeneration. Recently  a g r e a t e r r e c o g n i t i o n has been given to  p o s s i b l e b e n e f i t s of economic e v a l u a t i o n .  The  the  r o l e of economic  i n p u t i n f o r e s t resource p l a n n i n g has been d i s c u s s e d by B.C.F.S. (1976a) although Benskin  (1975) estimated  Coast G u i d e l i n e s .  The  the  to date l i t t l e a c t i o n i s e v i d e n t . timber  c o s t s r e s u l t i n g from the  1972  Environment and Land Use - Committee  S e c r e t a r i a t , i n c o n j u n c t i o n w i t h the F i s h e r i e s S e r v i c e of Environment Canada i s c u r r e n t l y (1978) a n a l y s i n g the economic impacts o f the salmonid enhancement program on other i n c l u d i n g timber  resources  production.  Unfortunately  however, environmental g u i d e l i n e s and  l e g i s l a t i o n are s t i l l being i n t r o d u c e d without  any  even  economic  a n a l y s i s by the r e s p o n s i b l e a u t h o r i t i e s o f e i t h e r the expected c o s t s or the p a r t i c u l a r b e n e f i t s to r e s u l t . the 1972  Coast G u i d e l i n e s and  introduced  i n 1977  Examples i n c l u d e  the e q u a l l y c o n t r o v e r s i a l B i l l - C 3 8 ,  as an amendment to the F e d e r a l F i s h e r i e s A c t .  In the next chapter  the present  f o r e s t resource  system i n the Kamloops F o r e s t D i s t r i c t i s d e s c r i b e d .  planning  11 CHAPTER I I I CURRENT FOREST RESOURCE PLANNING SYSTEM IN THE KAMLOOPS FOREST DISTRICT The  forest characteristics  f o r e s t resource planning vary Districts  (B.C.F.S.,  experience, in  1975).  e m p h a s i s i s on  and  the d e t a i l e d  approach  between t h e P r o v i n c i a l Because o f the a u t h o r ' s  a d e s c r i p t i o n of current  t h e Kamloops F o r e s t D i s t r i c t .  to  Forest work procedures  I t i s shown t h a t t h e r e  is  a l a c k o f economic a n a l y s i s i n f o r e s t r e s o u r c e p l a n n i n g . t i o n s where s u c h  a n a l y s e s may  be most b e n e f i c i a l l y  g i v e n t h e p r e s e n t manpower and Forest resource  areas  and  referral folio  planning  concern,  resource  resource  conflict.  procedures  and  use,  sensitivity  Separate  agencies  format  (where d a t a  is available).  by  t h e B.C.F.S.  1. E n v i r o n m e n t a l  and  the  of their  terms o f  the time  main s o u r c e s  Office  (B.C.F.S.,  the resource  differences in public  d i s c u s s i o n of each o f  The  the  protection  of resource values  o f i n f o r m a t i o n and,  of  procedures:  plans;  involved, geographical  t h e Kamloops F o r e s t D i s t r i c t prepared  of environmental  Each r e f l e c t s  i n v o l v e s examination  the resource type  process  coordinated resource  system.  introduced,  i n v o l v e use  the a p p l i c a t i o n of three d i f f e r e n t system;  Situa-  budget c o n s t r a i n t s , a r e d e s c r i b e d .  p l a n n i n g c u r r e n t l y may  inventory c l a s s i f i c a t i o n  still  and  and  these application,  importance, and of  the  cost involved information  D i s c u s s i o n Paper  are  6  1976d).  '" • -:  P r o t e c t i o n Areas  Environmental  P r o t e c t i o n Areas  are not u n c o n d i t i o n a l l y a v a i l a b l e  (E.P.As) s p e c i f y  f o r timber  areas  production  that  because  12 of environmental,  technological, social,  e c o n o m i c and  political  constraints. A major aim o f is  to a s s i s t  p h a s e . The  identifying  methodology i s not  to gather  Cooperation areas  and  are  expected  present  soils,  important,  and  or resource  folio  i n f o r m a t i o n on  where w i l d l i f e ,  where t i m b e r  planning  systems;'  the  rather i t  forest  resource.  i s sought to  r e c r e a t i o n and  management p r o b l e m s  where l o g g i n g i s l i k e l y  i n E.P.As a r e a l l o w e d  initial  process  a substitute for operational  of the r e l e v a n t resource agencies  of unstable  values  inventory  i n t e g r a t e d l a n d management i n t h e  p l a n n i n g under the r e f e r r a l serves  E.P.As i n t h e  t o be  identify  water are  uneconomic.  Changes  f o r w i t h c h a n g e s i n k n o w l e d g e and  economic  conditions. These d e s i g n a t e d  areas  assist  the  formulation of  mental c o n s t r a i n t s i n the planning procedures Also reduction factors in  environ-  d i s c u s s e d below.  a p p l i e d t o t h e t o t a l m e r c h a n t a b l e volume  t h e E.P.As c o n t r i b u t e ;  to c a l c u l a t i o n  of the a l l o w a b l e  cut.  2. R e f e r r a l s The  referral  system a l l o w s  mental c o n s t r a i n t s from r e s o u r c e  input, i n the agencies,  a u t h o r i s a t i o n of h a r v e s t i n g permits outside resource  folios.  on  form of  prior  to  environ-  the  a l l Crown f o r e s t  lands,  R e f e r r a l s f u n c t i o n at the o p e r a t i o n a l  level. Agencies referred  to which development p l a n s  to i n c l u d e the F i s h  o f R e c r e a t i o n and ment Canada and Environment.  and  Conservation,  Wildlife The  and  cut permits  may  be  Branch of the M i n i s t r y  Fisheries  Service of  Environ-  t h e Water R e s o u r c e s S e r v i c e o f t h e D e p a r t m e n t  of  13  a) T h e F i s h and W i l d l i f e This fish  agency has p r e p a r e d  and w a t e r f o w l a r e a s .  referred tion  f o rharvesting  Operational  clauses  fortheir  i s given.  contracts.  standard  departs  clauses  i n s e r t e d i n the c u t permit  A recent  trial  appears t o  (Federal F i s h e r i e s )  chart areas,  cutting  occurring within  listed  and w a t e r s h e d  Fisheries staff for  F o r otherr-spawning streams a r e f e r r a l the appropriate  from  permits.  (includes e n t i r e drainage  t h e stream) a r e r e f e r r e d t o F e d e r a l  Instead, are  of harvesting  s a l e s , and r i g h t s - o f - w a y  salmon spawning streams  comment.  areas a r e  authorisa-  by v e r b a l c o n t a c t  agreement e x i s t s t h a t proposed timber  wildlife,  a set of  O n l y when a p r o p o s a l  F i s h e r i e s S e r v i c e o f Environment Canada  permits,  of  areas  i s i t r e f e r r e d t o F i s h and W i l d l i f e .  have s p e e d e d t h e p r o c e s s i n g  An  f o r these  input before  For other  period, replacing written referrals  b)  plans  critical  i s a v a i l a b l e t o t h e zone f o r e s t e r f o r i n c l u s i o n  the harvesting  these  maps i d e n t i f y i n g  t o F i s h and W i l d l i f e  contract clauses in  Branch  i s not required.  from a s e t o f c o n t r a c t  clauses  document b y t h e zone f o r e s t e r .  c) Water R e s o u r c e s S e r v i c e o f t h e D e p a r t m e n t o f E n v i r o n m e n t The  procedure i s t o r e f e r  a l l chart areas  t o t h e Water  Resources S e r v i c e f o r a d e c i s i o n on whether r e f e r r a l individual compiled To the  c u t permits  f o r quick summarise,  referral  consider  reference  Guidelines  t o increase the e f f i c i e n c y of  each major r e s o u r c e  of c r i t i c a l  have b e e n  and a p p l i c a t i o n .  i n an e f f o r t  process  a classification  i s required.  of the  or high  agency has e s t a b l i s h e d  priority  areas  a d d i t i o n a l i n p u t by t h e m s e l v e s a n d p r o b a b l y  i n which  they  additional  14 constraints are required.  For other areas, sets o f g u i d e l i n e s  have been formulated f o r d i r e c t a p p l i c a t i o n by the B.C.F.S. 3. C o o r d i n a t e d Resource Plans T h i s p l a n n i n g procedure  r e q u i r e s the involvement  of resource  users i n a s e r i e s o f meetings and perhaps some f i e l d  trips,  d u r i n g which problems and r e s o u r c e c o n f l i c t s a r e i d e n t i f i e d , i n f o r m a t i o n i s s u p p l i e d and a consensus on r e s o u r c e c o n s t r a i n t s developed  f o r an area.  U s u a l l y a s t a n d a r d i s e d format i s  followed. Coordinated r e s o u r c e plans a r e developed  i n areas where  c a t t l e grazing values are s i g n i f i c a n t . F o r 1976 and 1977 a t o t a l 15 p l a n s , c o v e r i n g an area o f 390,700 ha had been completed  i n the Kamloops F o r e s t D i s t r i c t .  P a r t i c i p a n t s i n c l u d e the B.C. F o r e s t S e r v i c e , t h e Land Management Branch,  the F i s h and W i l d l i f e Branch, M i n i s t r y o f  A g r i c u l t u r e , Water Resources Branch,  r a n c h e r s , r e s o r t owners and  anyone e l s e who may be a f f e c t e d . The time  (and t h e r e f o r e the cost) t o complete a p l a n v a r i e s  from one month t o one year, depending on the a b i l i t y o f the d i f f e r e n t p a r t i e s t o come t o some agreement. i n v o l v e d i n p r e p a r i n g the f i n a l r e p o r t .  L i t t l e work i s  The r e p o r t i s typed  a c c o r d i n g t o the standard format and maps showing l o c a t i o n o f the area and the main problem areas may be a t t a c h e d . T o t a l agreement o f a l l p a r t i c i p a n t s i s n o t necessary and may not be p o s s i b l e . As development p l a n s a r e n o t i n c l u d e d , r e f e r r a l  procedures  are s t i l l mandatory p r i o r t o a u t h o r i s a t i o n o f timber h a r v e s t i n g .  15 The  coordinated resource plans  discussion, resource 4.  an o p p o r t u n i t y  users  Planning  Resource f o l i o s and f o r e s t  constraints, forest  timber  and f o r  resource  Attached  both  o f maps, d i s p l a y i n g  f e a t u r e s and environmental  recommended b y r e s o u r c e  listing  problems.  System  comprise a c o l l a t i o n  resource uses.  guidelines,  f o r problems t o be a i r e d  t o g a i n a b e t t e r a p p r e c i a t i o n o f mutual  Resource F o l i o  physical  s e r v e a s a forum f o r  agencies  t o e a c h r e s o u r c e map i s a s e t o f  g e n e r a l and s p e c i f i c  harvesting operations  to protect a l l  i nthe defined  restrictions for  area.  T h i s p l a n n i n g m e t h o d i s a p p l i e d a t t h e sub-management (watershed) l e v e l .  Boundaries  the planning requirements for  of a particular  planning a geographical  catchment To  o f thef o l i o s  unit  u s u a l l y depend o n  l i c e n s e e and a d e s i r e  often represented  December o f 1 9 7 7 a t o t a l o f e i g h t f o l i o s  Forest D i s t r i c t . underway.  2,070  k m had been completed 2  A further  33  T h i s compares w i t h  thet o t a l  area  2  (B.C.F.S.,  Agencies,groups planning process B.C.  c o v e r i n g an a r e a  i n t h e Kamloops  f o l i o s occupying  t h e B.C.F.S. i n t h e Kamloops F o r e s t D i s t r i c t km  by a r i v e r  area.  of approximately  58,700  unit  8,500  k m were 2  under t h e c o n t r o l o f of  5,870,000  ha.  or  1975).  a n d i n d i v i d u a l s w h i c h may be i n v o l v e d i n t h e  include the following:  Forest Service—Ranger,  F i s h and W i l d l i f e  District  Office  and  Office  Head  Branch  F i s h e r i e s S e r v i c e o f Environment Canada Parks Branch  16 Water R e s o u r c e s Mines  Service  Department  Public  participation  Licensee I n v o l v e m e n t o f some p a r t i c i p a n t s areas  according  to t h e i r  Branch i s only concerned adjoining parks  Provincial  interests. with  Parks  i s limited  F o r example, t h e P a r k s  recreational  plans o f areas  a n d a r e a s w h i c h may be s u i t a b l e f o r  i n the future. L a r g e l y because o f a l a c k o f r e s o u r c e  shortage limited  agency s t a f f  o f inventory information, the f o l i o to high p r i o r i t y  areas.  according to public interest torium area fied  t o o n l y a few  system has been  T h e s e have b e e n  identified  ( f o r example t h e B o n a p a r t e mora-  and t h e S t e i n V a l l e y ) and f r o m p r o b l e m a r e a s  by t h e v a r i o u s  agencies.  F o l i o maps may  include the following:  F o r e s t cover  and h i s t o r y  Soils Topography Forest  capability  P r o t e c t i o n - hazard  rating  priority Recreation Range  Private Insect Fish  capability*  land* infestations*  and w i l d l i f e  Federal  rating  capability  (grazing)  values  fisheries*  Water r e s o u r c e s *  and a  - major salmon  - water  users  streams  identi-  17 Mining  potentials*  Licensee's  development  T h o s e marked w i t h an is  of  asterisk  t o 40  chain to  The  included i f that  resource  folio  1 to  s c a l e a r e b e i n g c h a n g e d f r o m one  system i s a procedure  agencies.  As  involves  little  mainly  knowledge.  they  b e n e f i t t o the. company w o u l d be  up  a great involvement  the p l a n n i n g process  folios  (as  on  local  and  increased  possibilities  t a k e between one  A c o s t a n a l y s i s of the 11  folio  thousand d o l l a r s Company e s t i m a t e s  e s t i m a t e may 5. E c o n o m i c All  felt  in  of  speeding  forest  planning.  Currently,  area).  It is  is  c o u l d h e l p overcome t h e manpower  agencies,  6 and  this  a r e more f a m i l i a r w i t h  communication w i t h r e s o u r c e  resource  Again  c o u l d be made o f company p a r t i c i p a t i o n  f o r e s t c o n d i t i o n s and Of  presen-  resource  budget c o n s t r a i n t s .  because t h e i r p e r s o n n e l  deficiency.  and  Kamloops F o r e s t D i s t r i c t i t  a d d i t i o n to e x i s t i n g  b e c a u s e o f manpower and  coast)  for collection  o f c o m m u n i c a t i o n between  p r a c t i c e d i n the  g r e a t e r use  inch  50,000.  t a t i o n o f i n f o r m a t i o n and  the  are only  importance.  W i t h m e t r i c a t i o n map  that  plan  be  per  conservative  years  complete.  i n d i c a t e s a cost of  (depending  (Kofoed,  to  on  s i z e of that  between folio  this  1977).  Input  system, the c o o r d i n a t e d  criteria.  folio  two  f o r s i m i l a r work s u g g e s t  planning procedures  planning  procedure  and  o u t l i n e d ; t h e E.P.As, t h e  resource  s y s t e m , depend p r i m a r i l y F o r example, t h e s e  plans on  and  the  technical  criteria  referral  resource and  are e x p l i c i t  folio  biological i n the  18 objectives and on  food fish  to minimise sedimentation,  conditions  for wildlife  subject  experience  to i n t u i t i v e a n d common  slopes  Rather c o n s t r a i n t s on timber  included  sense.  F o r example, i n c a r i b o u h a b i t a t on  ( i n excess o f 50%),  restrictions  experience  this  Limitation  to cable  operation.  harvesting  a n a l y s i s by t h e B.C.F.S. b a s e d o n  and w i t h  low i n i t i a l  v o l u m e s , r e c o m m e n d a t i o n s by t h e F i s h a n d W i l d l i f e  the  impacts  i s made a t r i g o r o u s e c o n o m i c e v a l u a t i o n o f  management a l t e r n a t i v e s .  steep  and t o r e d u c e h a r m f u l  habitat.  No a t t e m p t  are  produce a v a r i e t y o f cover  o f a low i n t e n s i t y  operation  Branch  have  s e l e c t i o n harvest.  i s of questionable  logging  merchantable  economic  From  viability.  further reduces the a t t r a c t i v e n e s s o f  However, t h e r e  i s less  c e r t a i n t y on the v i a b i l i t y  o f h a r v e s t i n g t h e a r e a when t h e s e l e c t i o n c o n s t r a i n t i s r e l a x e d . Also of interest  a r e t h e timber  d i n g t o changes i n technology Implicit specific  the  various  bargaining on  fortheir  timber  input  resource  A r e they  technical  b e t w e e n t h e B.C.F.S's  agencies values.  to maintain  worthwhile?  answers.  process  industry  maximum  Questions a r i s e from  regarding this  Should t h e r e s t r i c t i o n s  h a r v e s t i n g be i n c r e a s e d o r d e c r e a s e d ?  into the planning  definitive  process  g u i d e l i n e s and c o n s t r a i n t s r e s u l t i n g process.  values.  supplies f o r a viable forest  the objectives o f resource  protection  economic  correspon-  o f many g u i d e l i n e s a n d  constraints i s a bargaining timber  o f such stands  and r e l a t i v e  i n the establishment  desire to maintain and  values  Without  economic  i ti s not possible to provide  L i m i t a t i o n s may be s e t o n b i o l o g i c a l a n d  g r o u n d s b u t no means i s a v a i l a b l e f o r s e l e c t i n g a  s i t u a t i o n o f g r e a t e s t e f f i c i e n c y w i t h i n these  scientific  bounds.  19 Some economic i n p u t i s d e f i n i t e l y p o s s i b l e w i t h i n e x i s t i n g manpower and Pearse it  budget c o n s t r a i n t s . (1976, p.271) s t a t e d "Even i n the most awkward cases  i s p o s s i b l e to q u a n t i f y the c o s t  ( i n terms o f timber  values  foregone) o f v a r i o u s p r o t e c t i v e or enhancement measures, and can be a c o n s i d e r a b l e  help i n determining the most e f f i c i e n t means  of meeting p r e s c r i b e d o b j e c t i v e s . impossible  this  More g e n e r a l l y , i t i s v i r t u a l l y  to i d e n t i f y the b e s t c o n t r o l s on l o g g i n g p r a c t i c e s -  i n c l u d i n g such d i v e r s e matters as s i z e s o f c u t - b l o c k s , t i o n standards, and  utilisa-  r e f o r e s t a t i o n techniques--without some  r o u t i n e economic e v a l u a t i o n of the a l t e r n a t i v e s . of f o r e s t p o l i c y , p l a n n i n g  L i k e some areas  procedures have been conspicuous f o r  the absence of economic a n a l y s i s i n a matter o f  important  economic decision-making." Further,  such a n a l y s i s would be most b e n e f i c i a l l y  where resource most apparent.  and  introduced  c o n s t r a i n t c o n f l i c t s are most s e r i o u s  Examples i n c l u d e the p r o t e c t i o n of the  h a b i t a t and o f the salmon stream h a b i t a t As experience and  information  and  caribou  (see Chapter V I I ) .  i n c r e a s e , r e s u l t s w i l l become  a v a i l a b l e f o r more general a p p l i c a t i o n . Now planning  t h a t the absence of economic i n p u t i n f o r e s t has  been e s t a b l i s h e d , i t i s a p p r o p r i a t e  economic theory  of resource  a l l o c a t i o n before  resourse  to examine the  developing  approach f o r i n c o r p o r a t i n g economic a n a l y s i s i n t o  an  resource  planning. Concepts of economic theory the f o l l o w i n g two  chapters.  are i n t r o d u c e d  and  discussed  in  20  CHAPTER IV ECONOMIC THEORY OF RESOURCE ALLOCATION T h i s chapter begins by i d e n t i f y i n g the need to extend  the  t r a d i t i o n a l narrow viewpoint o f f o r e s t r e s o u r c e p l a n n i n g from o n l y timber e x t r a c t i o n to i n c l u d e o t h e r f o r e s t uses and To apply economic a n a l y s i s to the a l l o c a t i o n of  values.  forest  r e s o u r c e s , i t i s necessary to examine the economic theory of resource a l l o c a t i o n .  The assumptions and requirements  of t h i s  theory are d i s c u s s e d w i t h r e s p e c t to the i m p e r f e c t c o n d i t i o n s e x h i b i t e d by the f o r e s t s e c t o r . Comments on the inadequacy of the a v a i l a b l e resource economic i n f o r m a t i o n l e a d • on to d i s c u s s i o n of the  and  availability  and q u a l i t y of c o s t i n f o r m a t i o n f o r timber o p e r a t i o n s and to the p o s s i b l e methods f o r a p p l y i n g monetary v a l u e s to non-market f o r e s t uses. I t i s concluded  t h a t i n f o r m a t i o n and procedures  are a v a i l a b l e  to undertake a n a l y s i s of economic e f f i c i e n c y b e n e f i c i a l to f o r e s t resource p l a n n i n g . 1. The M u l t i p l e Values o f F o r e s t s In g e n e r a l f o r e s t s p r o v i d e a heterogeneous group of values f o r human consumption. Timber values dominate i n B.C.  because o f the e x i s t i n g  f o r e s t endowment, the r e l a t i v e l y small and  scattered population  and the dependence of the economy on the f o r e s t  (timber)  industry. In B.C. 1976).  94% of the forest: land i s owned by the Crown  (Pearse,  Government ownership i s o f t e n supported because many  21 forest water  values values  although  including are  s t i l l  not  of  directly  social  diseconomies  of  resource  downstream  and  Timber forest  included is  the  values  resource  need  soil  i n money m a r k e t Also, without  i n d u s t r y may  not  and  of  suitable  expressed  wildlife,  harm  other  and terms,  control,  forest  values.  should  values  fish,  significance.  timber  in analysis for a  recreation,  be  considered  external effects  resource means  of  management resource  in isolation; should  also  other  be  alternatives.  allocation  There  amongst  forest  uses. 2.  Welfare The  economic  dependent examine  Theory  on  the  theory  welfare social  of  resource  economics,  desirability  a  allocation  collection  of  economic  i s strongly  of  concepts  which  alternatives  (Libby,  1976).  A  basic concept  (Herfindahl tion  of  and  depends infinite Kneese, The  Kneese,  resources  someone b e i n g on  Economics  1974).  This  output  initial  number  of  off  that  distribution  Pareto  optima  .the Pareto optimum  i s achieved  cannot  (Bohm,  is  be  1973). of  are  with  changed  possible  alloca-  without  Further,  wealth,  an  the  implying  optimum that  (Herfindahl  an  and  .  Pareto  allocations  and  Welfare  made w o r s e  the  1974)  of  optimum  (Bohm, as  defines a  1973).  usually  regarded  and  the  size  of  extends  this  idea, adding  the  the  set of  Physical or  relationship  resulting the  output.  economically  technical  between  the  Economic  condition that  the  efficient  efficiency  is  quantity of  input  efficiency output  of  the  22 goods most p r e f e r r e d b y t h e members o f t h e s o c i e t y a r e m a x i m i s e d a t a minimum c o s t i n l o s s o f s o c i e t y ' s a l t e r n a t i v e u s e s o f i t s a v a i l a b l e r e s o u r c e endowment a n d t e c h n o l o g i c a l knowledge It  (Krutilla  and E c k s t e i n ,  1958).  i s u s e f u l now t o c o n s i d e r some o f t h e c o n d i t i o n s f o r a  P a r e t o optimum a n d o b s e r v e the r e a l world. a r e used  how s u i t a b l e  Where s u i t a b l e ,  this  " i d e a l " model i s f o r  examples from  forest  resources  i n the following discussion.  Firstly,  i t i s helpful  t o expand t h e b a s i s f o r e q u a t i n g  e c o n o m i c e f f i c i e n c y w i t h P a r e t o optimalVty. dure i s t o a p p l y marginal  analysis  The standard  t o b o t h demand a n d p r o d u c t i o n  t h e o r y a n d combine t h e two t o d e f i n e t h e optimum. were s u i t a b l y  expressed  b y Bohm  proce-  (1973)  The r e s u l t s  i n h i s book o n s o c i a l  efficiency: "...all  marginal  rates of substitution  r e l e v a n t p a i r s o f commodities, f a c t o r s must be e q u a l the m a r g i n a l  (price  Moreover  r a t e s o f t r a n s f o r m a t i o n must be e q u a l t o rates of substitution."  w e l f a r e economics f u r t h e r  competition with  a n d commodity  f o r a l l consumers.  the c o r r e s p o n d i n g marginal Traditional  factors  between  requires that  i t s c o n d i t i o n s o f many b u y e r s  perfect  and s e l l e r s  t a k e r s ) and p e r f e c t knowledge i s a c o n d i t i o n o f P a r e t o  optimality,  and t h a t producers  and u t i l i t y r e s p e c t i v e l y  (Libby,  A competitive equilibrium costs a r eequal  t o marginal  and consumers maximise 1976).  i s o b t a i n e d where m a r g i n a l  social  benefits.  t h e p r o d u c t i o n and thus  social  The m a r g i n a l  s o c i a l c o s t i s t h e v a l u e o f t h e o t h e r goods f o r e g o n e increasing  profit  by m a r g i n a l l y  c o n s u m p t i o n o f o n e good,,  23  while for  the marginal s o c i a l b e n e f i t r e f l e c t s the s o c i a l  t h a t good  preference  ( H e r f i n d a h l and Kneese, 1974).  An example o f c o m p e t i t i v e i s as f o l l o w s .  equilibrium i n forest  resources  I f the width of r i p a r i a n s t r i p s were m a r g i n a l l y  i n c r e a s e d so t h a t t h e a d d i t i o n a l s o c i a l b e n e f i t s d e r i v e d from i n c r e a s e d f i s h and water values exceeded the added s o c i a l i n terms o f timber values  foregone, then c l e a r l y the optimum  c o n d i t i o n has not been reached. competitive  costs  To maximise e f f i c i e n c y  (achieve  e q u i l i b r i u m ) the p r o t e c t i o n s t r i p s should be f u r t h e r  i n c r e a s e d i n width u n t i l the m a r g i n a l s o c i a l b e n e f i t s water) are equal t o the marginal s o c i a l c o s t s  (timber).  assumed here t h a t o n l y f i s h , water and timber values by the width of r i p a r i a n  ( f i s h and It i s  are a f f e c t e d  strips.  Economists sometimes d i s m i s s problems o f income d i s t r i b u t i o n e f f e c t s by assuming t h a t the marginal u t i l i t y o f income i s equal for  everyone  ( H e r f i n d a h l and Kneese, 1974).  Intuitively  this  does not appear v a l i d , a s even a t a common income l e v e l , i n d i v i d u a l s d i f f e r i n ambition  and consumption d e s i r e s and t h e r e f o r e i n  marginal u t i l i t y o f income.  In an attempt t o overcome t h i s  problem the compensation p r i n c i p l e was i n t r o d u c e d ,  a l l o w i n g some  compensation o f l o s e r s by the gainers,, (Libby, 1976).  This  leads  i n t o the concept o f b e n e f i t - c o s t a n a l y s i s which depends l a r g e l y on a r e l a x e d Pareto  type optimum, i n which n e t s o c i a l b e n e f i t s  are sought and income r e d i s t r i b u t i o n i s r e l i e d upon t o compensate losers.  A good summary o f b e n e f i t - c o s t a n a l y s i s and i t s s h o r t -  comings i s t o be found i n Mishan's book "Elements o f C o s t - B e n e f i t Analysis"  (1972).  F u r t h e r c o n s i d e r a t i o n s o f the problems o f  income d i s t r i b u t i o n are d e t a i l e d i n the next  chapter.  24 3. Problems o f Market F a i l u r e and Inadequate  Knowledge  U n f o r t u n a t e l y , the foundations of the e f f i c i e n c y  conditions:  the money market, which a c t s as a common denominator o f consumer's p r e f e r e n c e s and t e c h n i c a l e f f i c i e n c y a r e s u b j e c t t o i m p e r f e c t i o n and f a i l u r e and t h i s i s p a r t i c u l a r l y n o t i c e a b l e w i t h respect to f o r e s t resources.  Examples o f market i m p e r f e c t i o n and  f a i l u r e i n c l u d e the prevalence o f e x t e r n a l i t i e s , p u b l i c good properties  ( H e r f i n d a h l and Kneese, 1974) and the i n a b i l i t y t o  measure p h y s i c a l v a l u e s l e t alone monetary v a l u e s o f r e l a t i o n s h i p s between i n p u t s and outputs of some uses. a) Market i m p e r f e c t i o n s which cause departures from the m a r g i n a l c o n d i t i o n s necessary f o r Pareto o p t i m a l i t y c o n s t i t u t e a s e t o f i s s u e s c a l l e d second b e s t problems  ( H e r f i n d a h l and Kneese, 1974).  Causes i n c l u d e market c o n c e n t r a t i o n , p r i c e support programs and taxation. D i f f i c u l t i e s o f a n a l y s i s are expressed by H e r f i n d a h l and Kneese (1974 , p.54): " I f t h e r e i s more than one departure from  Pareto  o p t i m a l i t y , o r a p a r t i c u l a r type i s o f such a s c a l e t h a t i t a f f e c t s the marginal c o n d i t i o n s f o r more than one consumer and producer, p o l i c i e s i n d u c i n g a p a r t i c u l a r marginal c o n d i t i o n to be met may i n c r e a s e o r reduce w e l f a r e i n the Pareto sense...  Second b e s t s i t u a t i o n s  are d i f f i c u l t t o a n a l y s e . " b) E x t e r n a l i t i e s .  The complex i n t e r a c t i o n o f r e s o u r c e v a l u e s i n  f o r e s t s ensure t h a t e x t e r n a l i t i e s a r e s i g n i f i c a n t i n almost any s i n g l e r e s o u r c e use.  Examples i n c l u d e the impact o f timber  h a r v e s t i n g on  a e s t h e t i c s and  ment p r o g r a m on outside  the  timber  forest  only  Extending  timber  values  (now  o f o n l y one  two).  P u b l i c Goods.  properties  any  other  values  and  release  flooding of  resource  c r e a t e d by resource  from  uses, single  use  uses i n s t e a d  Some f o r e s t r e s o u r c e u s e s e x h i b i t p u b l i c g o o d  marginal  individual  can  c o s t of zero  such  t o a l l and  a g o o d l e a d s t o no  consumption o f t h a t good.  Optimum c o n d i t i o n r e q u i r i n g  marginal  Often  forest resource planning  externalities  consumption of  s u b s t i t u t i o n and  enhance-  t h e v o l u m e and  silting  evaluating a l l forest  individual's  as a n o t h e r  the  i n w h i c h t h e good i s a v a i l a b l e  individual's  salmon  to streams.  to i n c l u d e the other  i n t e r n a l i s e s many o f t h e s e  c)  and  the n o t i o n of  considerations  of the  including  activities  production  or  effects  adjacent  are a f f e c t e d  o f water f o r farming streams.  the  each reduction of  The  Pareto  e q u a l i t y between m a r g i n a l  rates of  r a t e s o f t r a n s f o r m a t i o n does not consume some o f t h e p r o d u c t  ( H e r f i n d a h l and  Kneese,  hold  at a  1974).  There  i n c e n t i v e under a p r i v a t e exchange system t o produce such  a  Public  p r o v i s i o n i s necessary,  s u p p l y i n g t h e good a c c o r d i n g  social  d e s i r e s working through  the p o l i t i c a l  goods i n c l u d e a e s t h e t i c s , water q u a l i t y , and,  at r e l a t i v e l y  fishing. noticeable  low  process.  wilderness  levels  including  reduced  o f use,  overcrowding  c a t c h and  reduced  good. to  Public  awareness  l e v e l s of consumption, w i l d l i f e  (At h i g h e r  i s no  and  effects  sports  become  environmental  quality.) d)  Imperfect  forest  Knowledge.  resource  products  Market values making i t v e r y  do n o t  exist  difficult  to  f o r many compare  26  resource  use s t r a t e g i e s and, t h e r e f o r e , t o f u l f i l  criterion. relied  Future  p r i c e s and c o s t s  uncertain.  larly and  In a planning  important  process  growing stock The  f o r market goods  context  because o f t h e long  hence t h e h i g h  values  goods t h e p o l i t i c a l  i s frequently  upon t o d e f i n e t h e c o n s u m p t i o n g o a l s o f s o c i e t y  1976). are  F o r these  the e f f i c i e n c y  this  (e.g. timber)  omission  i sparticu-  rotation periods  cost of maintaining  i n timber  the necessary  and t h e r i s k o f b i o l o g i c a l  inventory of  o r market d i s a s t e r .  complex o f r e l a t i o n s h i p s between t h e v a r i o u s  i s largely  unknown.  h a r v e s t i n g on t h e f i s h  individual  streams i s n o t f u l l y  Schreuder,  1976).  understood  information  o f manpower a n d f i n a n c e  and man's i n a b i l i t y  to obtain  to forsee  habitat i n  (Crow, R a j a g o p a l a n d  l a c k o f p e r f e c t knowledge then r e s u l t s  cient resources  resource  F o r example, t h e e f f e c t s o f d i f f e r e n t  s y s t e m s and l e v e l s o f t i m b e r  This  (Libby,  future  from  insuffi-:  forest  resource  conditions.  Inadequate knowledge i s o f t e n s t a t e d as t h e major f a c t o r s e r i o u s l y limiting  t h e use o f t h e market system, f o r t h e a l l o c a t i o n s o f  f o r e s t resources 1976).  or to provide  Although t h i s  important  a l s o a p p a r e n t t h a t many o t h e r guidelines, of  limitation  procedures put forward,  regulations, the p o l i t i c a l  type  and l e v e l  of data  d i f f e r e n t procedures, tive  (Kimmins,  i s appreciated,  process  i t is  including  and t h e m o n i t o r i n g  s o c i a l d e s i r e s a l l s u f f e r from a l a c k o f knowledge.  the  The  environmental p r o t e c t i o n  r e q u i r e d may be d i f f e r e n t  Although  among  d e c i s i o n s based on q u a n t i t a t i v e o r q u a l i t a -  i n p u t a r e improved w i t h  an i n c r e a s e  i n relevant  serious d e f i c i e n c i e s outlined f o r the t r a d i t i o n a l  approach t o the a l l o c a t i o n  of resources  should  information. economic  n o t be t a k e n a s a n  27 excuse to ignore decision  Availability  a)  Timber  of  Pecuniary  s c a l e and  nature of  conflicts and one  timber  one  operations  o r more o f the  industry's the  a c t i o n on  the  operations  are  imply  other  the  physical  full  that  constraints.  cost  implications  firms,  keeping  gating  costs  analysis.  large  percen-  h i d e the  of  In  is available  from  information.  On  and  to that of  harvesting  data f o r  the  This  poor data  problem of  w o u l d be  paid  by  the  benefits  cost to  of  task of  accounting smaller aggre-  constraint  r e a d i l y improved  appropriate  confidentiality limits the  be  for  any  timber  Often procedures of  situation could  to designing  i t i s expected that  extreme  application  There i s a wide v a r i a t i o n i n  elements r e q u i r e d  be  incomplete  inadequate f o r the  costing  the  s i t u a t i o n s may  a timber  even the  methods and  cost  timber  i s available for analysis of  incomplete records.  p a y i n g more a t t e n t i o n  ever,  the  the  However, e v e n i n t h e s e  unsatisfactory  comparing h a r v e s t i n g  a  and  between t h e  spectrum of  Unfortunately,  often  ledger  documented c o s t s  timber values  industry  p r o c e d u r e s among c o m p a n i e s w i t h many, p a r t i c u l a r l y t h e  The  in  resource values.  p r o d u c t i v i t y and  ledger  management o p t i o n .  different  the  other resource values.  cases a base o f  timber  cost-benefit  expected from t h a t o f w e l l knowledge o f  the  between r e s o u r c e u s e s a r e  half of  other side of  of  economic a n a l y s i s  Values  importance of  i t s harvesting  industry  the  of  Industry  The  effect,  possibilities  process.  4.  tage o f  the  recording  systems.  inter-firm analysis. a suitable record  i n d i v i d u a l firms, of  by  How-  system  improved  28 information  f o r sound o p e r a t i o n a l p l a n n i n g  negotiations concern by  the  with  i s the B.C.  the  B.C.F.S. and  lack of d i r e c t  Forest  Service,  the  i s that with  the F o r e s t  Service cost figures w i l l nature.  f r o m Crown C o r p o r a t i o n s For  example, t h i s  Zealand Forest  This  s i d e r a b l y b e n e f i t the  current  tend  further  production for  the  second b e s t  i s a good c a s e f o r m a k i n g  information  (personal  by  the  Forest  e x p e r i e n c e ) and other  and  data  Service.  i s a v a i l a b l e to  a p p r a i s a l s y s t e m and  in  c o s t i n g methods  t o be  a v a i l a b l e f o r use  source of  Service  the  Of  i n timber  agency r e s p o n s i b l e  The  general  f o r evidence  agencies/.  involvement  resource.  of a very  result  other  and  the  i t can  New  con-  costing  require-  ments . The  opportunity  costs  constraints  are obtained  regulations  specify cable  from the  operations  then the  harvesting  methods i s t h e  P r o b l e m s may alienation.  The  to timber r e s u l t i n g  arise  timber harvesting  logging  opportunity  instead of  measure i s i m p o s s i b l e supply,  as  the  c o s t may  supply.  For  to obtain  Usually  to other  logging,  policy).  occur  as  timber  is fully  the o p p o r t u n i t y  (now  i n regions  c o s t sequence a c c o r d i n g  Where t h e  defined  as  involve  and this  surplus  timber  follows  i t follows  a  criteria  committed, t h i s  c o s t to timber of  the  purposes,  of  land  cost  operations  planning  skidder  change i n  the  alienated)  practical  sequence o f h a r v e s t i n g  Service  be  If  incurred.  i n examining c o n s t r a i n t s t h a t  smooth m o n o t o n i c c o s t c u r v e .  Forest  costs.  traditional  a d d i t i o n a l timber costs  opportunity  source of  environmental  c o s t to timber of the  d i f f e r e n c e between e x t r a c t i n g t h e wood alternative  from  no  haphazard (e.g.  seasonal  problem does  not  land a l i e n a t i o n i s  the  l o s t timber p r o d u c t i o n timber supply Sustained  from the a l i e n a t e d l a n d .  The reduced  i s f e l t by the. whole s u s t a i n e d y i e l d u n i t  Y i e l d U n i t o r Timber Farm L i c e n c e ) , the b a s i c  used t o determine the a l l o w a b l e  annual c u t .  (Public area  In p l a c e s i n the  Vancouver F o r e s t D i s t r i c t and the Southern I n t e r i o r , t h e supply s i t u a t i o n i s approaching one o f f u l l commitment o f a l l o w a b l e cuts t o l i c e n c e e s .  T h i s i s e s p e c i a l l y t r u e o f sawlogs.  The  assumption o f f u l l volume commitment i s used i n the example i n Chapter V I I . b) Non Market Values Much has been w r i t t e n on methods o f p l a c i n g monetary  values  on goods and s e r v i c e s t h a t do not p a r t i c i p a t e i n the market system. One by McKean  method i s t o use the concept o f shadow p r i c e s as d e f i n e d (1968): "When p r i c e s a r e i m p l i c i t i n exchanges t h a t should be  made to maximise a p a r t i c u l a r o b j e c t i v e f u n c t i o n  (or t o  minimise a c o s t f u n c t i o n ) , they a r e c a l l e d shadow p r i c e s . " Often i t i s p o s s i b l e to impute other values  (non timber)  by working back from the timber v a l u e s  a t stake.  example, the F i s h and W i l d l i f e Branch may c o n s i d e r b u f f e r s t r i p s , roading  resource For  t h a t machine  c o n s t r a i n t s and f o r e s t r e s e r v e s valued a t  $2,000 per year i n foregone timber v a l u e s  a r e r e q u i r e d t o main-  t a i n a t r o u t stream. . F r o m t h e i r e s t i m a t e s i t appears t h a t a t most 2 00 fisherman days a r e l i k e l y t o be spent on t h i s stream i n any  one year and t h a t t h i s i s u n l i k e l y t o change i n the f o r s e e -  able future.  The i m p l i e d v a l u e o f t h e f i s h e r y i s t h e r e f o r e a t  30 l e a s t $10  per  man  elsewhere may  day.  a l s o be  Experience with p r i c i n g these v a l u e s used to estimate non-market v a l u e s .  Another method, which has  found favour p a r t i c u l a r l y  s t u d i e s e v a l u a t i n g the  demand f o r r e c r e a t i o n a l  the w i l l i n g n e s s of the  consumer to pay  the  amount a c t u a l l y  paid  i s an e s t i m a t i o n of the recreational the  facilities, is experience over  (consumer's s u r p l u s ) .  R e l a t e d to  this  d i s t a n c e people w i l l t r a v e l to enjoy  experience and  the  c o s t i n c u r r e d i n the  homes might be  the  l o c a t i o n o f the  reasonable p r i c e to pay  f o r the  B r i t i s h Columbia  (B.C.  F i s h and  I t i s important to be these i n d i r e c t p r i c e s  These methods  w i l d l i f e values  c o s t of t h e i r d e r i v a t i o n  aware of the  relative "quality"  results  are  i s pertinent  likely  s o i l and  w i l l have to s u f f i c e and v a l u e s w i l l be  costly. the  (McKean, 1968).  a p p l i c a b l e to some f o r e s t u s e s , ( L e s l i e , impact and  is  of  to be worth  U n f o r t u n a t e l y even shadow p r i c i n g techniques are  visual  for  W i l d l i f e Branch, 1977).  particularly i f their derivation  q u e s t i o n of whether the  their  $10/day i s a  f i s h i n g resource.  were used to e s t i m a t e s p o r t s f i s h and  In  pay  stream r e l a t i v e to  used to determine whether or not  their  process.  above example knowledge of fishermen's preparedness to  f o r t h e i r s p o r t and  The  f o r an  in  1967).  water q u a l i t y .  These i n c l u d e  Qualitative  population location  and  not  analysis  downstream  important c o n s i d e r a t i o n s .  c) D i s c r e t e A n a l y s i s So sidered.  f a r o n l y the The  problems of average c o s t s have been con-  s t r i c t Pareto optimum e f f i c i e n c y r u l e and  rigorous derivations  (e.g.  benefit-cost  i t s less  models) depend upon  31 marginal analysis inputs  and  (inputs)  which i n turn  outputs.  requires  With r e f e r e n c e  to  divisibility  forest resources,  often  small  economies o f  scale  r e s u l t i n v e r y d i s c o n t i n u o u s changes of  i n some i n d u s t r i e s .  trated also  in large involve  provincial  P u l p and  plants.  total  S a w m i l l i n g and  be  substantial  on  discrete  interval analysis  d i f f e r e n t widths of  stream b u f f e r  values—Gillick  Scott,  should  s u f f i c e and  potential  errors  outweigh the 5.  Dynamic  in valuing i n the  of  time i n the  i m p o r t a n t as  ingredient  are  possible  (e.g.  s t r i p s on  in a  by  analysis  of  s t r e a m and  timber  In most c i r c u m s t a n c e s  r e s u l t s may various  help.  In  this  general,  r e s o u r c e s would discrete  a l l o c a t i o n problem  productive services  of  the  far  analysis.  (Herfindahl  i n the and  and  costs  introduces  discussed  Equality  i s now  C a p i t a l theory  economy t h r o u g h t i m e .  basics  of  "dynamics-capital preceding  "Economic Theory of  Kneese,  1974).  i s the A  of  title,  good  theory,"  statics  Natural  is a  discounted  sought from f l o w s  an  indeed, the  of  the  static  marginal analysis  of  a l l o c a t i o n m o d e l s and, included  previously  a b a s i s , and  through time.  this analysis  description  The  i n dynamic models.  marginal s o c i a l benefits  is  small  a"local•scale.  approximations of  dynamic a n a l y s i s .  is s t i l l  g i v e n to  the  concerns  Analysis  concept of  necessary  1975).  graphing the  errors  Inclusion  theory  and  out-  i s concenr:  recreational  d i s c r e t e changes which, w h i l e b e i n g  c o n t e x t , can  out  However,  paper p r o d u c t i o n  Approximations to marginal a n a l y s i s carrying  use.  of  values  are  put  r e l a t i v e to  perfect  dynamic  concepts  Resources"  The well  classical  u s e o f dynamic a n a l y s i s i n f o r e s t r y  know F a u s t m a n F o r m u l a  timber  rotation  (Haley,  f o r the d e r i v a t i o n of the f i n a n c i a l  1966).  T h i s model c a n b e e x p a n d e d b y i n j e c t i n g the values  arising  from t h e non-timber  However, t h e i n a d e q u a t e forest of  resources over  such  i s the  understanding  time  suggests  into  the analysis  uses o f t h e f o r e s t . of relationships  that the practical  among usefulness  a move i s d o u b t f u l .  Dynamic a n a l y s i s i n t r o d u c e s a f u r t h e r p r o b l e m t h a t h a s r e c e i v e d much a t t e n t i o n ; t h a t o f t h e c h o i c e o f d i s c o u n t r a t e t o be  used  i n a n a l y s i n g p u b l i c p r o j e c t s and i n v e s t m e n t  This  i s not the place to repeat  time  preference  values  the lengthy d i s c u s s i o n o f s o c i a l  and t h e s o c i a l o p p o r t u n i t y c o s t o f c a p i t a l .  s h o u l d be n o t e d , forestry  alternatives.  however, t h a t t h i s p r o b l e m  because,with the long investment  are very  sensitive  authors  including Marglin  present  a full  to the i n t e r e s t (1963),  Baumol  i s very  It  important i n  periods discounted /  r a t e used.  A number o f  (1968) and M a n n i n g  (1977)  d i s c u s s i o n on t h e s e l e c t i o n o f i n t e r e s t r a t e s .  6. Summary o f F a c t o r s A f f e c t i n g P r a c t i c a l i t y 2ysls  of Efficiency  A n a  Before Chapter  t u r n i n g t o t h e q u e s t i o n o f income d i s t r i b u t i o n i n  V, i t i s u s e f u l t o summarise t h e i m p o r t a n t  Examination has  p o i n t s so f a r .  o f t h e economic t h e o r y o f r e s o u r c e  shown some m a j o r d e f i c i e n c i e s  i n i t s application  allocation to forest  resources. a)  Reasons o f m a r k e t i m p e r f e c t i o n and f a i l u r e a r e o f t e n g i v e n  f o r Government i n v o l v e m e n t provides  i n forest  resources.  P u b l i c ownership  t h e o p p o r t u n i t y t o i n t e r n a l i s e many o f t h e c o s t s o f t i m b e r  33 management, r e c r e a t i o n a n d t h e o t h e r b)  forest  uses.  Information i) ii)  I n f o r m a t i o n on timber  h a r v e s t i n g c o s t s c a n be o b t a i n e d ,  Some d i r e c t m a r k e t v a l u e s a r e a v a i l a b l e resources  including  commercial  s a l m o n , r a n g e l a n d and  p o s s i b l y water f o r a g r i c u l t u r a l ii)  Sports f i s h i n g ,  wildlife  to  from  be a v a i l a b l e  purposes,  and r e c r e a t i o n  use iv)  Other soil  to provide increasingly  at local  experienced  techniques.  t h e s e methods a r e realistic  figures f p r  as w e l l as a t r e g i o n a l l e v e l s ,  values  quality  values are l i k e l y  v a r i o u s shadow p r i c i n g  I n c r e a s e d u s e and e x p e r i e n c e w i t h expected  f o r other  i n c l u d i n g a e s t h e t i c s , water q u a l i t y , a n d and s t a b i l i t y  qualitative  will  continue  t o depend on  analysis.  c) D i s c r e t e A n a l y s i s i s i m p l i e d b y t h e d i s c o n t i n u o u s n a t u r e o f many o f t h e u s e s o f f o r e s t r e s o u r c e s . be  an a c c e p t a b l e a p p r o x i m a t i o n It  nesses,  to marginal  i s the contention of t h i s  t h e economic t h e o r y o f a l l o c a t i o n do have a n i m p o r t a n t  planning.  This point i s reinforced  i n Chapter  V I , t h e example o f C h a p t e r  of  VIII.  Chapter  is  Chapter  extended  tion.  i t may  analysis.  p a p e r t h a t d e s p i t e t h e s e weak-  techniques  In  I n many s i t u a t i o n s  and i t s d e r i v e d  part to play i n forest by t h e s u g g e s t e d  resource  procedures  V I I and t h e r e c o m m e n d a t i o n s  V this discussion of forest  t o the o f t e n n e g l e c t e d concept  resource o f income  allocation distribu-  34  CHAPTER V FOREST RESOURCE ALLOCATION AND  INCOME DISTRIBUTION  While economists r e a d i l y assume s o c i a l o b j e c t i v e s maximum e f f i c i e n c y , the problems of expanding the function to involve other s o c i a l goals,  objective  i n c l u d i n g the  of income d i s t r i b u t i o n , are u s u a l l y d e f e r r e d  of  to the  criterion  political  system. The  mechanism f o r d e r i v i n g these income d i s t r i b u t i o n  o b j e c t i v e s and  i n c l u d i n g them i n the p l a n n i n g  important to t h i s paper.  process i s not  Instead, d i s c u s s i o n i s c o n c e n t r a t e d  on  the p o s s i b l e d i s t r i b u t i o n a l i m p l i c a t i o n s of f o r e s t r e s o u r c e planning timber  and,  i n p a r t i c u l a r , of environmental c o n s t r a i n t s  for  operations.  Discussion  t o p i c s i n c l u d e the r a t i o n a l e of who  pays f o r  environmental c o n s t r a i n t s , i m p l i c a t i o n s of stumpage as a measure o f economic r e n t and  the d i f f e r e n c e i n economic impact w i t h  v a r i a t i o n s o f the g e o g r a p h i c a l 1. P l a n n i n g  boundary used i n economic a n a l y s i s .  Objectives  I t i s agreed t h a t a p r e r e q u i s i t e f o r r e s o u r c e p o l i c y planning  i s a c l e a r l y defined  set of o b j e c t i v e s .  P l a n n i n g D i v i s i o n (1976c, p. 6) commented as  The  and  B.C.F.S.  follows:  "A f a i l u r e to adequately d e f i n e o b j e c t i v e s i s synonymous w i t h a f a i l u r e to p r o v i d e adequate r e s o u r c e management." Unfortunately  no c l e a r l y d e f i n e d  s e t o f o b j e c t i v e s has  been  " o f f i c i a l l y " s t a t e d f o r the use of the P r o v i n c e ' s f o r e s t land. The  economic theory of r e s o u r c e a l l o c a t i o n o u t l i n e d i n the  35  previous  chapter  assumes an o b j e c t i v e o f maximum s o c i a l  d e f i n e d i n terms o f economic  welfare  efficiency.  A number o f economists c a l l  f o r a d e c i s i o n framework i n  a l l o c a t i o n t o be expanded beyond t h i s t o encompass v a r i o u s and p o l i t i c a l goals (Libby, 1976).  i n c l u d i n g the q u e s t i o n o f income d i s t r i b u t i o n  Some trade o f f s between e f f i c i e n c y and income  d i s t r i b u t i o n a r e recommended To  social  (Maas, 1966).  i n c l u d e t h e c r i t e r i o n o f income d i s t r i b u t i o n i n a l l o c a -  t i o n analyses,  a value  judgement has t o be made d e f i n i n g t h e  p r e f e r r e d income d i s t r i b u t i o n . f u n c t i o n , the s o c i a l w e l f a r e  By e x p r e s s i n g  f u n c t i o n i s an attempt to i n c l u d e  e q u i t y c o n s i d e r a t i o n s w i t h i n a Pareto Although i m p e r f e c t i o n s weights r e g a r d i n g  society's u t i l i t y  framework  (Libby,  e x i s t i n determination  equity, i t i s s t i l l  1976).  of u t i l i t y  important to i n d i c a t e the  s i g n i f i c a n t d i s t r i b u t i o n a l i m p l i c a t i o n s o f a p r o j e c t o r resource allocation  (Mishan, 1972).  2. Who Pays t h e Cost o f Environmenta1 C o n s t r a i n t s ? In B r i t i s h Columbia, questions  with  important e q u i t y  c a t i o n s i n c l u d e t h e method o f stumpage d e t e r m i n a t i o n access  to and payment f o r other resource  impli-  and t h e  uses i n c l u d i n g  r e c r e a t i o n , f i s h i n g and w i l d l i f e . For the f o l l o w i n g d i s c u s s i o n on stumpage and e q u i t y ,  sub-  s t a n t i a l use has been made o f the Second Report o f t h e Task Force on Crown Timber D i s p o s a l , 1974—"Timber A p p r a i s a l and  Policies  Procedures f o r E v a l u a t i n g Crown Timber i n B r i t i s h Columbia."  Reference i s t o t h e m o d i f i e d Rothery a p p r a i s a l system p r a c t i c e d i n the I n t e r i o r , where t h e stumpage i s a r e s i d u a l a f t e r sub-  t r a c t i n g c o s t s o f timber h a r v e s t i n g and manufacture from market p r i c e s f o r lumber and c h i p s . The main concerns here a r e with the e f f e c t s on income d i s t r i b u t i o n o f a change from timber p l a n n i n g resource  planning  ( e f f e c t s o f environmental c o n s t r a i n t s ) , .and  the a b i l i t y o f stumpage t o r e p r e s e n t obtained  to f u l l f o r e s t  the t r u e economic r e n t  from timber.  As w i l l be seen below, the establishment  o f a minimum  stumpage can have important e q u i t y i m p l i c a t i o n s . For stands o f timber which e x h i b i t stumpages above t h e minimum, an i n c r e a s e i n h a r v e s t i n g c o s t s due t o environmental c o n s t r a i n t s w i l l decrease the stumpage r a t e and, t h e r e f o r e , t h e revenue t o the P r o v i n c i a l Government.  Everybody i s a f f e c t e d  and not j u s t the people who use the r e c r e a t i o n a l , f i s h ,  wildlife  and other values which a r e maintained and improved by the constraints.  The p r e v i o u s l y d e s c r i b e d estimate  F o r e s t I n d u s t r i e s o f i n excess o f $2/m  3  to c o n s t r a i n t s  o f the Council of  e x t r a h a r v e s t i n g c o s t due  (estimate was made i n 1973 and i s now  considered  very c o n s e r v a t i v e ) , or a minimum o f $100 m i l l i o n a year  (C.O.F.I.,  1975), suggests an average c o s t t o every person i n t h e p r o v i n c e of over $40 p e r year. wilderness  T h i s p r i c e might be low f o r an a v i d  user but i s probably  the p r o v i n c e .  considered  h i g h by many people i n  The concept o f user-pays i s u n l i k e l y t o advance  much i n the f u t u r e as i t i s f r a u g h t w i t h p o l i t i c a l and a d m i n i s t r a tive difficulties  (e.g. the t r a d i t i o n t h a t t h e w i l d e r n e s s  i s free  for  p u b l i c enjoyment).  Some o f the s e r v i c e s , i n c l u d i n g a e s t h e t i c s  and  an awareness t h a t w i l d e r n e s s  and  t h e r e f o r e do n o t lend themselves t o a system o f user payments.  areas e x i s t , are t r u e p u b l i c goods  A f u r t h e r c o m p l i c a t i o n i s the concept o f o p t i o n demand, i n which i n d i v i d u a l s who do not p l a n t o use a f a c i l i t y o r s e r v i c e , may be w i l l i n g t o pay something t o i n s u r e t h a t the item (e.g. w i l d e r n e s s ) w i l l be a v a i l a b l e i n case they l a t e r change t h e i r minds  (Lindsay, 1969). For  e c o n o m i c a l l y m a r g i n a l stands where a p p r a i s a l c a l c u l a -  t i o n s i n d i c a t e zero stumpage o r submarginal timber, the r u l e o f minimum stumpage a p p l i e s . m  3  i n the I n t e r i o r .  C u r r e n t l y , t h i s i s s e t a t $0*4 per  The e f f e c t s o f f u r t h e r c o s t i n c r e a s e s due  to environmental f a c t o r s can be r a t h e r complex and w i l l upon t h e s p e c i f i c s i t u a t i o n .  depend  The main e f f e c t s are q u a l i t a t i v e l y  o u t l i n e d here: a) The p r o f i t s o f f o r e s t companies w i l l d e c l i n e thus d e c r e a s i n g government income tax revenues. b) Some o f the i n c r e a s e d c o s t s may be passed onto the consumer.  Environmental c o s t s w i l l  supply c u r v e .  tend t o push up the producer's  The more i n e l a s t i c t h e  demand curve, the g r e a t e r  w i l l be the p r o p o r t i o n o f the c o n s t r a i n t c o s t s t h a t i s passed onto the  consumers  (Kemper,1975).  F o r the I n t e r i o r t h i s e f f e c t  appears  to be unimportant as the lumber producers f a c e completely e l a s t i c demand schedules (Apsey, Garton and Hajdu,  1973).  c) Higher c o s t s w i l l cause the e x t e n s i v e margin o f timber h a v e s t i n g i n B.C. t o s h r i n k , r e s u l t i n g i n a reduced s i z e o f the f o r e s t i n d u s t r y , e v e r y t h i n g e l s e being e q u a l .  A g a i n the e n t i r e  p o p u l a t i o n would be a f f e c t e d i n some way, through decreased government revenues and f o r some the impact c o u l d be l a r g e w i t h l o s t jobs and reduced b u s i n e s s . The 1978 s i t u a t i o n o f poor market c o n d i t i o n s i n the pulp and  38 paper s e c t o r , has  uncertainty  tended to discourage  forest  industry.  Environmental costs  to t h i s  that p a r t i a l  a n a l y s i s can  in  economy.  there  are  few  necessary planning 3.  employment a r e  aware o f  the  simply  '-"Economic r e n t the  use  the  other  Stumpage, as  o f any  fixed  therefore,  Stumpage d e p a r t s procedures i n the implications  to  as  i s the  surplus  value  could  and  be  risk  forest  a t t r i b u t a b l e to  employed."  cost  (Reed,  fits  considered  the  as  of  1975b)  this  simple  a measure  of  timber.  r e s i d u a l concept of  because of  the  stumpage.  stumpage as  a measure o f  maximum stumpage r a t e s and  b a s e d on  of  sales rather  than invested 1974  Task  economic  allowances capital  Force  Crown T i m b e r D i s p o s a l were a i m e d a t r e m e d y i n g  deficiencies.  resource  follows:  a f t e r deducting  (Reed, 1975b). Recommendations made i n t h e R e p o r t on  where  Kent  defined  resource  environ-  It i s  from t r u e economic r e n t because  i n c l u d e minimum and  elsewhere  sought i f r e q u i r e d .  be  Procedural d i s t o r t i o n s to  for profit  be  a p p r a i s a l c a l c u l a t i o n and  of the  opportuni-  province  forestry.  determined i n B r i t i s h Columbia,  and,  the  their  appreciated  to e x i s t  p o t e n t i a l impacts of  factors of production  economic r e n t a c c r u i n g  rent,  likely  f o r much o f  a Measure o f Economic  E c o n o m i c r e n t may  It is  r e g i o n a l i m p l i c a t i o n s of  important  costs  province's  because other  t h a t a l t e r n a t i v e s o l u t i o n s may  Stumpage as  definition  1976).  investment a l t e r n a t i v e s to  t o be so  be m i s l e a d i n g  However, t h e  mental c o n s t r a i n t s are  of high  have b e e n b l a m e d f o r  s i t u a t i o n (Knudsen,  f o r i n v e s t m e n t and  the  lumber m a r k e t and  f u r t h e r investment i n the  contribution  ties  i n the  such  39 With r e f e r e n c e to the r e s i d u a l concept o f stumpage, Copithorne  (1977) contended  t h a t companies are not encouraged  to  r e s i s t union c l a i m s when stumpage r a t e s are above the minimum as they recover any i n c r e a s e s through the stumpage c a l c u l a t i o n . Wages, t h e r e f o r e , capture some o f the f o r e s t r e n t (Copithorne, 1977). Of i n t e r e s t here are the p o s s i b l e e q u i t y e f f e c t s of a s u b s t a n t i a l and permanent environmental c o s t component added i n t o the a p p r a i s a l c a l c u l a t i o n .  These a d d i t i o n a l c o s t s would i n c r e a s e  the percentage of m a r g i n a l and sub-marginal timber  (marginal i s  d e f i n e d i n terms of minimum stumpage) f o r any l i k e l y market c o n d i t i o n s and t h e r e f o r e encourage f o r e s t companies to be more s e n s i t i v e to c o s t s .  C o n t i n u i n g C o p i t h o r n e ' s argument, the  economic r e n t p r e s e n t l y captured by wages would tend t o be d i s s i p a t e d by the o t h e r c o s t s (companies are encouraged more r e s i s t a n t to union c l a i m s ) . of  to be  This represents a r e a l l o c a t i o n ,  p a r t of the r e n t from labour to the maintenance of o t h e r r e -  source v a l u e s .  The  i n t e r a c t i v e impact on the economy i s l i k e l y  to be complex.  In simple terms, stumpages remaining above the  minimum are i n c r e a s e d . revenues  However, the e f f e c t on government  i s c a n c e l l e d somewhat by reduced employee income tax.  Below the minimum stumpage, the company b e n e f i t s and the process e f f e c t i v e l y h e l p s them pay f o r some of the environmental 4.  G e o g r a p h i c a l Aggregation and D i s t r i b u t i o n  costs.  Effects  T h i s t o p i c r e l a t e s d i r e c t l y t o s o c i e t y ' s v a l u a t i o n of r e g i o n a l and d i s t r i c t economic s t a b i l i t y 1976  and growth (see Byron,  f o r a d e t a i l e d a n a l y s i s of f o r e s t p o l i c y on community  40 s t a b i l i t y and r e g i o n a l economic development) , i . e _ . . i t government p o l i c y i n these m a t t e r s . may  have d i f f e r e n t  Environmental  concerns  constraints  impacts on the p r o v i n c i a l economy compared .  to the d i s t r i c t or l o c a l economy. A d d i t i o n a l manpower requirements  s p e c i f i e d by m o d i f i e d  h a r v e s t i n g systems and methods, and r e s t r i c t i o n s on o p e r a t i o n s may  be f a v o u r a b l e to the economics o f the  existing local  community through h i g h e r employment and an i n c r e a s e d p a y r o l l . A t the p r o v i n c i a l l e v e l c a p i t a l e f f i c i e n c y may from i n d u s t r y people suggest t h a t i n i t i a l l y a d d i t i o n a l work requirement,  suffer.  Comments  a l o t o f the  e s p e c i a l l y i n r o a d i n g , has been  covered by e x i s t i n g p l a n t and l a b o u r . r e s u l t e d i n poorer q u a l i t y work.  For some r o a d i n g t h i s  has  S u p e r v i s i o n has not i n c r e a s e d  n o t i c e a b l y although a d m i n i s t r a t i o n p a r t i c u l a r l y by government agencies probably has.  P u b l i s h e d labour and p r o d u c t i o n s t a t i -  s t i c s are gross averages, e x c l u d i n g the p o s s i b i l i t y a t i s o l a t i n g t h i s p o s s i b l e t r e n d from o t h e r p r o d u c t i v i t y and market e f f e c t s . F u r t h e r development and refinement o f environmental  protection  i s expected t o e s t a b l i s h a more s i g n i f i c a n t a c t u a l e f f e c t timber  on  productivity.  By c o n t r a s t the i n d u s t r y i s eager to suggest t h a t e n v i r o n mental  c o s t s have helped t o d i r e c t investment away from the  forestry sector  (Knudsen, 1976).  other developments now  Investment  province).  funds, d i v e r t e d to  promising h i g h e r r e t u r n s may  remedy p r o v i n c i a l investment e f f i c i e n c y  B.C.  help to  ( i f i n v e s t e d i n the  However, i t i s l i k e l y t o be d e l e t e r i o u s to r e g i o n a l  economies, which have few o p t i o n s and i n B.C. dependent on f o r e s t development.  are l a r g e l y  41 Land  alienation  from  t i m b e r p r o d u c t i o n p r o v i d e s an  interesting- c a s e o f d i s t r i b u t i o n  effects.  almost  t o form p a r k s r e p r e s e n t a t i v e o f  fulfilled  i t s objectives  each of i t s d e f i n e d l a n d full  public  Parks  Branch  i n areas  (Parks Branch,  has  approaching  1975  and  1975).  However, o f f i c i a l  ness  types, p a r t i c u l a r l y  commitment o f a l l o w a b l e c u t s  B.C.F.S.,  The  procedures  pressure to r e s u l t  areas  i n desired  Moratorium  a r e a and  are a v a i l a b l e which a l l o w  i n t h e f o r m a t i o n o f p a r k s and w i l d e r -  locations.  F o r example, t h e  Bonaparte  t h e P u r c e l l W i l d e r n e s s A r e a owe  existence  largely  to p u b l i c  p r e s s u r e , and  currently  receiving considerable attention  their  the S t e i n V a l l e y from  is  environmental  groups. In  direct  economic terms the p r o v i n c i a l  experience a very s l i g h t substantial people.  losses  loss  from  i n j o b s and  this  economy  public  income may  be  to lose,  who  instigate  pressure while  suffered  O f t e n i t i s p e o p l e a t a d i s t a n c e from  have t h e l e a s t  may  by  local  the scene,  who  t h e p r e s e r v a t i o n move-  ments . Baumol and sequences  Oates  (1975) examined t h e d i s t r i b u t i o n a l  of i n d u s t r i a l  programmes and "In  they sum,  and  community p o l l u t i o n r e d u c t i o n  stated: o u r m o d e l s and  support to the view  the a v a i l a b l e  evidence  improvement p r o m o t e t h e i n t e r e s t s  higher-income  groups  well  of r e a l  of  more t h a n t h o s e o f t h e p o o r ,  i n c r e a s e the degree  distribution  lend  t h a t , on b a l a n c e , programmes f o r  environmental  may  con-  income.  of i n e q u a l i t y  they  i n the  Low-income f a m i l i e s  are  42 more l i k e l y  to feel  that basic  n e e d s , s u c h as b e t t e r  • and h o u s i n g , c o n s t i t u t e more p r e s s i n g cleaner For  land  "outsiders" "rural but  a i r and w a t e r . "  residents."  Also  opportunities regional This  (Byron,  1976).  that  "locals"  t o them t h a n t o  The a l l u s i o n t o i n c r e a s i n g  completes the d i s c u s s i o n  on t h e l i m i t a t i o n s i n t h e  o f e c o n o m i c t h e o r y t o r e s o u r c e a l l o c a t i o n and o n  f o r e s t r e s o u r c e management  i n examining  a procedure  f o r using  i n f o r e s t resource  alterna-  plans.  In C h a p t e r V I t h e r e s u l t s o f t h i s d i s c u s s i o n  level  are poor  f e w e r a l t e r n a t i v e employment  some o f t h e c o n c e p t s t h a t may be i m p o r t a n t  define  by  inequality i s retained.  application  tive  19 7 5 )  r e s i d e n t s " and  t o be more i m p o r t a n t  t h e y have  than  and p o o r a r e r e p l a c e d  o r by " m e t r o p o l i t a n  I t i s not suggested  t h e i r jobs are l i k e l y  "outsiders."  (Baumol and O a t e s ,  a l i e n a t i o n t h e terms r i c h  and " l o c a l s "  concerns  food  are applied to  economic a n a l y s i s a t t h e o p e r a t i o n a l  management.  43 CHAPTER  VI  PROCEDURE FOR ECONOMIC ANALYSIS IN FOREST RESOURCE MANAGEMENT AT THE OPERATIONAL LEVEL A procedure  i s developed  for practical  and  u s e f u l economic  a n a l y s i s o f management a l t e r n a t i v e s (or e n v i r o n m e n t a l a t the  operational  Before and  level.  describing this  interrelationship  planning  are  operational  (administration  procedure, the  o f r e g i o n a l and  discussed. level  constraints)  The  are given  and  reasons and  the  information)  importance, d i f f e r e n c e s  operational  levels  for concentrating need t o c o n s i d e r  of  on  the  transaction  costs of planned a n a l y s i s i s  argued. 1. L e v e l s  of F o r e s t Resource  Particular  reference  B.C.F.S. P l a n n i n g 1977a).  The  blishing  a)  and  Provincial  for different  o b j e c t i v e s and  collecting and  information,  resource  uses, are  to d e f i n e a p o l i c y  used w i t h i n of  forest  of resource  sensitive  values.  locality,  i t is likely  policy  Levels  together  levels of planning,  distribution  levels  of  and  the  and  planning  that of  esta-  forest  information.  Regional  resource  higher  1976b, 1976c, 1976d  f u n c t i o n a l d i f f e r e n c e s between t h a t o f  planning  operations  i s made t o d i s c u s s i o n p a p e r s o f  D i v i s i o n (1976a,  requirement  depends upon t h e  Planning  of P l a n n i n g .  with the  Aggregated  demand f o r e c a s t s f o r bounds o f  resource  flexibility  social  allocation.  At  is available in  uses, to d e f i n e p r i o r i t y  If r e c r e a t i o n a l values t h a t timber  objectives  values  areas  are high may  be  in  these planning for one  recovered  elsewhere, (this  where c o m p e t i n g r e s o u r c e v a l u e s  i s consistent with  the c r i t e r i o n  a r e r e l a t i v e l y low  o f maximum  efficiency).  Some work h a s a l r e a d y been c o m p l e t e d  on d e v e l o p i n g  tion  areas  The  systems which i d e n t i f y Fish  and W i l d l i f e  priority  B r a n c h has a t t e m p t e d  classifica-  for forest to i d e n t i f y  importance a c c o r d i n g t o o b j e c t i v e s e s t a b l i s h e d f o r production the be  (B.C.F.S., 1976b).  Province  into  represented  The P a r k s  by a P r o v i n c i a l  planning concepts  level.  study  park  The and  site  specific  this  attempts  can  The  (E.L.U.C.) i s d e v e l o p i n g  land  regional forest  However, t o d a t e  nature  resource  of forest  resources, deter attempts a t impacts  o f r e s o u r c e use  Much c a n s t i l l  so n e c e s s a r y  be g a i n e d  t o do so a s l o n g as an a w a r e n e s s o f p o t e n t i a l  allocation  T h i s approach  should  (where p o t e n t i a l  of uncertainty.  1976).  d a t a and t h e c o m p l e x i t y  operational level  o f planning.  planning a t  (Pearse,  t o provide a true r e g i o n a l overview  level  maintained.  areas  Branch,  has g e n e r a l l y been l a c k i n g  aggregating  interactions,  in  1975).  1977).  inadequacy o f f o r e s t  accurately  for  (Parks  should  and methods t o be u s e d a t t h e r e g i o n a l  (E.L.U.C,  the r e g i o n a l l e v e l  wildlife  Branch has c l a s s i f i e d  An example i s t h e T e r r a c e - H a z e l t o n  resources  areas o f  land t y p e s , each o f which i t c o n s i d e r s  E n v i r o n m e n t and Land u s e Committee use  uses.  indicate  savings  gross  from errors i s  inefficiencies  a r e g r e a t e s t ) and h i g h l i g h t  The main p r o b l e m o f i n a d e q u a t e  o n l y be s o l v e d by c o n c e n t r a t i n g e f f o r t  information  a t t h e sub-management  u n i t and o p e r a t i o n a l l e v e l s o f p l a n n i n g . b)  Sub-management U n i t a n d O p e r a t i o n  paper emphasis i s d i r e c t e d  Levels of Planning.  towards t h i s  level  of planning  of a lack of well defined objectives f o r forest  resource  In t h i s because policy  in  the  the  Province,  and  relationships  t h e need f o r good q u a l i t y  between f o r e s t v a l u e s  A l s o t h e more c o m p l e x p r o b l e m s , several  levels  of planning^are  information  in different conditions.  i n t r o d u c e d when h a n d l i n g avoided.  I t i s important  f o r e s t managers t h a t good a n a l y s i s i s p o s s i b l e . starting of  p o i n t i s a t the o p e r a t i o n a l l e v e l ,  the P r o v i n c e ' s  forestry  E c o n o m i c as w e l l as  technical  of  These c o s t s a r e forest  resource  l a c k the  implied  by  Information important  allocation,  financial  the concept  Discussion collation electronic  of  backing of  of .most -  information  for allowing as  local  feedback  into  Costs  c o n s i d e r a t i o n s i n the a n a l y s i s particularly  to  fulfil.the  i n c l u d e s comments on the use  p r o c e s s i n g and  i n the  agencies  forest resource  i n f o r m a t i o n and  data  obvious  concern  biological  g u i d e l i n e s and  s i t u a t i o n where most o f t h e r e s o u r c e and  show  planning.  2. A d m i n i s t r a t i o n and  of  and  i s important  adaptation of environmental levels  the  The  to  personnel.  from the o p e r a t i o n a l l e v e l  higher  on  the  are  present understaffed  responsibilities  planning.  the c o s t s of b a s i c of data,  data,  the p o t e n t i a l  importance of the  of  human  variable. To data, tion  increase efficiency  Pearse  of basic  (1976) recommended i m p r o v e d d e s i g n o f d a t a  systems t o take  collect  i n the c o l l e c t i o n  advantage of p r e s e n t  procedures  i n f o r m a t i o n on w i l d l i f e p o p u l a t i o n s and  concurrently with  timber  planning a c t i v i t i e s  on  inventory)  priority  and  areas.  the  forest collec-  (e.g.  habitat  concentration of  For  some r e s o u r c e s ,  specific  environmental  to o b t a i n .  including  interactions  In a P r o v i n c i a l  dependent mainly  on  c o l l e c t i o n * m a y be  s a l m o n , i n f o r m a t i o n on  trained  i s limited  context  extensive  o b s e r v a t i o n and  and  very  site  costly  research  improved  a worthwhile supplement to the  data  few i n t e n s i v e  studies. The  resource  folio  planning  Kamloops F o r e s t D i s t r i c t , existing It  data  and  s y s t e m , as  i s a procedure  establishment  of  c a t e g o r i e s of c o s t , value  planning e f f o r t  i s worthwhile,  lack of understanding The  involvement  planning  facilities joint  For by  both  cooperation  been c r i t i c i s e d  potential  processing. repetitive  and  timber  models—as System  the  the a  Parks  resource  inefficient recreational  Branch,  1975).  without  Changes i n  a d m i n i s t r a t i o n t o overcome some o f  exists  calculations readily  and  of e l e c t r o n i c simple  and  be  Effects  on  allowable  incorporated into  f o r example t h e Computer A s s i s t e d R e s o u r c e  specific  data  i n s i m u l a t i o n of combinations  apparent.  nature  these  (1976).  Pearse  f o r the use  h a r v e s t i n g c o s t s may  site  with  because of  forest  (Crook,  (C.A.R.P.) u n d e r d e v e l o p m e n t by  The  As  in forest  to avoid  Advantages i n the h a n d l i n g of  assumptions are  guidelines.  III).  difficult  o f a number o f a g e n c i e s  i n e f f i c i e n c i e s were recommended by Great  be  t h e B.C.F.S. and  resource  of  j u d g e m e n t s on w h e t h e r  example, t h e p r o v i s i o n o f  p l a n n i n g has  the p r e s e n t  may  (Chapter  i n the  of the b e n e f i t s .  requires positive  management.  for collation  environmental  i s p o s s i b l e to c o s t the procedure  the other  implemented  the  of cut  allocation Planning  B.C.F.S.  o f most f o r e s t  resource  inter-  47 actions  causes  Environmental  problems Network  State d i d not attempt  i n modelling.  1976).  on  salmon p r o d u c t i o n  Instead, they developed  fish  CARP p r o g r a m  Valley  t o c o n s t r u c t a g e n e r a l model f o r t h e  b a s e d o n an e x t e n s i v e l i t e r a t u r e The  Snohomish  (SVEN) r e s e a r c h p r o g r a m i n W a s h i n g t o n  interaction of logging a c t i v i t y al,  The  and w i l d l i f e  a data reference  r e v i e w and  impact  (Crow e t system  f i e l d observations.  module p l a n n e d  as p a r t o f  (B.C.F.S., 1977b) i s n o t y e t a v a i l a b l e  the  (early  1978). Man, forest  as an o p e r a t i o n v a r i a b l e ,  resource planning.  tages of a w e l l poor  stressed and  potential  importance (Cottell  o f r o a d and  e_t a l , 1976)  given to t r a i n i n g  operators to understand resources, dingly.  to  interpret  Some work has  B.C.F.S. has  developed  b l o c k l a y o u t has both  In a n o t h e r  by  Forest D i s t r i c t  Perhaps  the requirements physical  Practical  more  of the  c o n d i t i o n s and  a l r e a d y b e e n done.  a  been  i n harvesting  attention machine  "other"  field  It will  personnel  o f ground  been w r i t t e n  K e i t h Moore o f  c o m m u n i c a t i o n w i t h i n a g e n c i e s and  the  stream-  s o o n come o u t a s  (B.C.F.S., 1976g,  a  p.55).  methods f o r r e d u c i n g  skidding (Johnson  savings are p o t e n t i a l l y  forest  to plan accor-  a d e c i s i o n - m a k i n g framework f o r  impact  has  by  often  for efficiency  example a handbook o u t l i n i n g  the environmental  lost  l o g g i n g e n g i n e e r s and  bank management u n d e r E.P.763. handbook f o r use  be  advan-  supervision.  f o r environmental p r o t e c t i o n .  s h o u l d be  forgotten in  environmental  d e s i g n e d h a r v e s t i n g l a y o u t may  o p e r a t o r o r poor The  The  s h o u l d n o t be  i n the  and  large  Nelson  Wellburn, in  c o m p a n i e s and  1976).  improved between them.  48 After not  a l l i t i s t h e machine o p e r a t o r  the forest  who b u i l d s t h e r o a d and  manager.  3. M o d e l f o r I n t r o d u c i n g E c o n o m i c A n a l y s i s i n t o Resource P l a n n i n g .  T h i s procedure  i s concerned  Forest  with analysis a t the  operational  level.  aggregating  o p e r a t i o n a l information are necessary  levels  Identify  the procedure  i s as f o l l o w s :  the environmental  harvesting  c o n s t r a i n t s on  Identify  t h e normal o r base o p e r a t i o n  c)  Compare a) a n d b) and u s e p r e v i o u s identify costs  t o timber  f)  situation.  experience  c o n s t r a i n t s which a r e l i k e l y  t o be  to "significant"  values.  D e v e l o p a r a n g e o f management a l t e r n a t i v e s f o r comparative  e)  timber  and management o p e r a t i o n s .  b)  d)  f o r higher  of planning.  I n summary a)  R e s o u r c e u s e o b j e c t i v e s and methods o f  Identify  analysis.  timber  c o s t elements t h a t vary  "significantly"  between management  alternatives.  Derive  o p p o r t u n i t y c o s t s f o r timber  comparative  values  foregone. g)  Identify  and attempt  u s e s f o r management h)  forest  resource  alternatives.  D e t e r m i n e t h e management p r e s c r i p t i o n w h i c h m a x i m i s e s t h e economic e f f i c i e n c y values  i)  to value other  obtained  of resource  from t h e  i n f ) and g ) .  Examine p o s s i b l e s o c i a l effects  allocation  impacts  o n income d i s t r i b u t i o n )  (inparticular the o f t h e management  options.  49 j)  Make r e c o m m e n d a t i o n s b a s e d on These stages  more a)  b)  other  and  specific  planning  I d e n t i f y the  defined  normal o p e r a t i o n  that without  f o r the  e l e m e n t as  the  have o n l y Usually  discussed  in  one  (not  construction  contrast,  i t will  and  of  t o be  landings,  cattle  the  stops.  the  a limitation  intensity  (effectively  reduction  i n timber  on  block  and  VII).  total,  operations.  possible  to  before  concentrate as  in  on  these.  used here imply  analyst.  For  include  some  example  the  grassing  f e n c e s and  the  be  timber.  removal of  (reducing  land  timber  roading  first  costs).  pass roading  costs By  and  supply)  s i z e combined w i t h a low  increases  supply  cost  of harvested  3  c o n s t r a i n t s may  be  f o r each  In most c i r c u m s t a n c e s t h e s e  wood volume f r o m t i m b e r p r o d u c t i o n may  be  a  constraints  be  r e p a i r of  l e s s than $0»04/m  "critical"  b a s e may  constraints  "critical"  judgement by  often  i t i s u s e d as  of timber  s i g n i f i c a n t ) c o n s t r a i n t s may  skid tracks  likely  costs  therefore  and  Chapter  is  i n d i v i d u a l l y and  o r more " c r i t i c a l "  coarse quantitative minor  the  experience,  words " s i g n i f i c a n t "  The  Many o f t h e  f o r e s t uses w i l l ,  a n a l y s i s and  This  separately  (see  folios  here.  situation:  or  including  from r e f e r r a l s ,  useful  proceeds  a m i n o r i m p a c t on  the  Guidelines,  costing exercise.  exercise  other  beginning the  it  be  c o n s t r a i n t s and  whole o p e r a t i o n  from p r e v i o u s  identify  are  the  "Significant" constraints:  demanded by  of  now  constraints  mechanisms a r e  base or c o n t r o l i n the  The  analysis w i l l  I d e n t i f y environmental c o n s t r a i n t s :  assumed t o be  c)  and i ) .  detail.  both general and  i n the  h)  Both a costs  its or  logging large  50 i n c r e a s e d by d)  $1  per  m  i s necessary  costs.  t o o v e r c o m e p r o b l e m s c a u s e d by  knowledge o f f o r e s t production  environment  inadequate  i n t e r a c t i o n s and  functions characteristic  of the  the d i s c r e t e  forest  resource  and  user i n d u s t r i e s . An  predict given  example o f t h e critical  former  levels  of timber  With present  p r e s c r i p t i o n s may harvesting,  i t may  be be  operation  and  to the  evidence  lowest  intensities  (% t i m b e r  t i m i n g of the interest  charges c a r r i e d  values  obtained  is  demonstrated  obtained  by  constraints.  Of  interest  i m p a c t on  activity by  the  from the  then  may  Similarly  timber  cyclical  there  salmon v a l u e s  pass). be  i s which  over  a  logging  Further  important  operation  may  the  i n terms  and  the  of  impact  salmon p o p u l a t i o n s  (this  i n Chapter V I I ) .  a n a l y s i s , which i s s u b j e c t An  harvesting  operation,  s i z e s or over a range o f  Economic p r o c e d u r e s a r e  sibility.  downstream  before  c l e a r - c u t block  removed i n f i r s t  harvesting  on  example,  logging cost.  for differential  range of c l e a r - c u t block  i m p a c t on  for a  to d i s c e r n a d i f f e r e n c e i n  salmon spawning r i v e r . the  activity  to  between a p r o g r e s s i v e s e l e c t i o n  a two-pass, s m a l l  alternative yields  inability  harvesting  For  impossible  salmon v a l u e s ,  no  current  knowledge a v a r i e t y o f  acceptable.  i m p a c t on  close  i s the  catchment i n terms of d e t r i m e n t a l  salmon v a l u e s .  be  "significant"  D e v e l o p management a l t e r n a t i v e s f o r c o m p a r a t i v e a n a l y s i s :  This  its  are  3  largely  to the  d e p e n d e n t on  assumption of p e r f e c t  approximation to marginal  a n a l y s i s can  e v a l u a t i n g a range of p r a c t i c a l Any  critical  marginal  constraint level  levels  of  (shown  by  divi-  be the  51 variation  i n r a t e s o f change) i n t e r m s o f c o s t s  p h y s i c a l measure o f e n v i r o n m e n t a l interest  to the analyst.  insufficient  field  impact  o r o f some  i s likely  F o r some e n v i r o n m e n t a l i n t e r a c t i o n s  information  and u n d e r s t a n d i n g o f t h e  mechanisms i n v o l v e d make i t d i f f i c u l t  to evaluate  d i f f e r e n c e s over the range o f c o n s t r a i n t l e v e l s Some r e s e a r c h e r s attempt  have a p p l i e d  strips  and S c o t t ,  Identify "significant"  on  the c r i t i c a l  Some examples Alienation  affected  on f i s h  values  i n an  ( S a d l e r , 1970;  timber  c o s t elements:  constraints identified  experience.  include:  o f timber  from h a r v e s t i n g - - e f f e c t s t h e a l l o w a b l e  logging—harvesting,  Small block  size—roading,  Directional  falling-falling  hauling  roading  hauling  costs  costs w i l l  be  of the reserve.  and h a u l i n g  and h a r v e s t i n g  costs. costs.  costs.  i n t e n s i t y and p a s s s y s t e m — r o a d i n g  Opportunity  T h e s e depend  i n c ) and o n  d e p e n d i n g on t h e l o c a t i o n and s i z e  Selection  f)  subjective probabilities  R o a d i n g and t o a l e s s e r e x t e n t  Logging  examined.  1975).  e)  cut.  value  t o overcome t h i s p r o b l e m , i n t h e e v a l u a t i o n o f t h e  width of r i p a r i a n Gillick  t o be o f  f o r timber values  and h a u l i n g  foregone:  costs.  The m a i n  sources o f timber c o s t s a r e : i)  Company c o s t s .  Accounting procedures often vary  companies making comparisons ii)  Forest  generality (The  Service (not s i t e  difficult.  appraisal costs. specific)  These s u f f e r from  and t h e i r  indirect  B.C.F.S. does n o t r u n i t s own h a r v e s t i n g  although  between  i t d o e s c a r r y o u t some p r o d u c t i o n  their  source.  operations  studies).  iii)  Other s t u d i e s .  Costs  are l i k e l y  t o be s p e c i f i c t o  c e r t a i n c o n d i t i o n s and a s s u m p t i o n s . To  compare management a l t e r n a t i v e s w h i c h have  investment for  and r e t u r n s time  each year The  profiles,  are discounted  the expected  to the present  c o n t r o v e r s y on t h e s e l e c t i o n  i n Teeguarden's  interest.  One, "a r e l a t i v e l y  range investment (Teeguarden, Smith  second h i g h e r  urgent  stock.  role  (Teeguarden,  1 9 7 6 ) .  depletion of the surplus f o r a high rate i s the  subproductive  s u r p l u s growing  w h i c h c a n be r e i n v e s t e d t o meet t h e demands  1 9 7 6 ) .  social  time  preference  transportation, health, welfare For this  t e n per cent advocated  (McKillop,  productive capacity"  I t appears t h a t a r a t e c l o s e  for this  rapidly,  long  by t h e r e c e n t comments o f  . . .- The j u s t i f i c a t i o n  of education,  (Teeguarden, the  ( 1 9 7 7 ) .  public services with high  areas  low r a t e f o r s t r a t e g i c ,  one f o r p l a n n i n g  need t o c o n v e r t  stock to c a p i t a l  T h e r e a p p e a r s t o be  f o r developing  i s advocated  (present v a l u e ) .  s u g g e s t i o n o f two r a t e s o f  i s supported  and M a n n i n g  (1976)  old-growth  for  planning  1 9 7 6 ) ,  to f i v e p e r cent "The  (1976)  net values  o f an a p p r o p r i a t e  d i s c o u n t r a t e has n o t y e t been d e c i d e d . merit  different  i n the a n d so o n . "  purpose a d i s c o u n t r a t e c l o s e t o  f o r the United  States i s implied  1 9 7 6 ) .  Knowledge o f c u r r e n t c o s t s a n d p r i c e s i s i m p e r f e c t a n d the  f u t u r e i s unknown.  Also present  to d i s c o u n t r a t e s , p a r t i c u l a r l y investments indicate and  i n forestry.  those  factors  over  Sensitivity  values  are very  t h e l o n g p e r i o d s common t o a n a l y s i s i s necessary  t o which t h e a n a l y s i s i s most  t o show what r a n g e o f v a l u e s  sensitive  are " l i k e l y " .  To  to  sensitive  highlight  t h e most s e n s i t i v e v a r i a b l e s i t may be u s e f u l t o g r a p h t h e r e s u l t s o f the s e n s i t i v i t y  analysis with  percentage  or unit  variation  o f t h e v a r i a b l e s on t h e x - a x i s and t h e c o r r e s p o n d i n g  variation  i n the present  v a l u e on t h e y - a x i s  I n c l u s i o n o f maximum, minimum and e x p e c t e d variables useful g)  ( i f this  values  1977).  f o r the  i n f o r m a t i o n i s a v a i l a b l e ) w o u l d be v e r y  to the planner.  Identify  resource The  (Riggs,  and e v a l u a t e o t h e r r e s o u r c e  u s e s may be i d e n t i f i e d  r e l e v a n t p u b l i c agencies  uses:  The m a i n  "other"  from t h e c o n s t r a i n t s i n a ) .  (e.g. F i s h  and W i l d l i f e  B r a n c h and  F e d e r a l F i s h e r i e s ) s h o u l d be c o n s u l t e d f o r i n f o r m a t i o n necessary As dollar  to value  with  the d i f f e r e n t  timber,  the procedure  v a l u e on t h e f o r e s t  v a l u e terms For  i s t o attempt t o p l a c e a  u s e s and t o e x p r e s s  p h y s i c a l a n d m a r k e t i n f o r m a t i o n may be  f o r use i n the a n a l y s i s .  commercial v a l u e o f salmon f i s h e r i e s value of forage For pricing  other  to the c a t t l e resource  techniques.  some g e n e r a l v a l u e s B.C. (B.C. F i s h  eries  Examples  (see Chapter  A series  wildlife  and t h e  of reports  shadow  has been p u b l i s h e d by  B r a n c h , p r o v i d i n g m e t h o d o l o g y and  forfish  and w i l d l i f e  and W i l d l i f e B r a n c h ,  was made o f t h e v a l u e  ( P a t t i s o n and P h i l l i p s ,  VII)  industry.  1971).  recreational values  recreational  1977).  D e p a r t m e n t has computed r e c r e a t i o n a l  estimate  include the  u s e s i t may be p o s s i b l e t o a p p l y  t h e B.C. F i s h a n d W i l d l i f e  in  them i n p r e s e n t  (discounted to the present).  some u s e s ,  available  resources.  values  The F e d e r a l F i s h -  values  o f b i g game h u n t i n g Numerous e s t i m a t e s  f o r s a l m o n . An i n Alberta o f f i s h and  have been made i n t h e U n i t e d  54 States.  A summary o f some o f t h e r e s u l t s  steelhead (1975).  sport fishers D a t a on f i s h  the resource many a r e a s  i s provided  by G i l l i c k  o r mammal p o p u l a t i o n  by p e o p l e a r e i m p o r t a n t .  uses w i l l  These i n c l u d e v i s u a l wilderness  areas.  and u s e o f  are available.  have t o be q u a l i t a t i v e l y  examined.  a p p e a r a n c e and k n o w l e d g e o f u n t o u c h e d  The f o r m e r  i s s e r v e d by p a r k s  location  size,  estimates  is likely  t o be most  n e a r p o p u l a t i o n c e n t r e s and c o m m u n i c a t i o n latter  and S c o t t  Unfortunately there are  i n B.C. f o r w h i c h o n l y c r u d e  Some r e s o u r c e  f o r s a l m o n and  and w i l d e r n e s s  important  corridors, areas  while the  and i s n o t always  dependent.  h) Maximum e f f i c i e n c y :  Values  obtained  t o d e t e r m i n e t h e "most e f f i c i e n t "  i n f ) a n d g) a r e summed  management a l t e r n a t i v e o r i n  o t h e r words t h e p r e s c r i p t i o n w h i c h g i v e s t h e g r e a t e s t combined n e t benefit  from a l l v a l u e d  resources.  the a n a l y s i s i s s u b s t a n t i a l results  i s diminished.  to the r e s u l t s identified. resource i)  and a r e a s  Also  Social  the v a l i d i t y  impacts:  of g r e a t e s t data  single  criterion  o f t e n become  As s t a t e d i n Chapter  of efficiency.  w h i c h may be u s e d .  deficiency are  apparent. V i t i s important resource  Employment,  r e v e n u e s and v a l u e added a r e c o n s i d e r e d criteria  here  a brief  review  to  use beyond government  as examples o f  A l l three are p a r t i c u l a r l y  a p p l i c a b l e t o changes i n t h e a l l o w a b l e c u t (timber Only  important  importance o f the d i f f e r e n t  expand t h e d e c i s i o n framework f o r f o r e s t the  content of  of the efficiency  However, c o n s t r a i n t v a r i a b l e s  the r e l a t i v e  values w i l l  I f the qualified  o f the concepts  i s included.  supply). For further  d i s c u s s i o n a n d f o r e s t i m a t i o n o f i n d i c e s f o r employment,  55  g o v e r n m e n t r e v e n u e s and changes i n timber  value  supply,  added e f f e c t s r e s u l t i n g from  see  appendices  Changes i n employment a r e district  scene.  I t i s an  I,  most r e l e v a n t  i n d i c a t i o n of  the  environmental p r o t e c t i o n at these l e v e l s . are  only  likely  l a r g e new  t o be  of  concern to the  d e v e l o p m e n t s o r when t h e  operation(s)  c o n s t r a i n t s are  I I and  III.  to the social  local  or  impact  of  Employment  changes  P r o v i n c i a l economy  impacts of  in  timber  aggregated over a region  or  the  Province. The  measurement o f  g o v e r n m e n t r e v e n u e s has  distribution  implications.  stumpage and  taxation.  B o t h stumpage and on m a r k e t  It includes  Stumpage was  corporate  main  discussed  income t a x e s a r e  e n v i r o n m e n t a l p r o t e c t i o n may labour  categories;  i n Chapter  strongly  and  not  b u s i n e s s i n the  be  r e s u l t i n g from valid  economy.  Usually  one  e s t i m a t e o f p o t e n t i a l l o s s e s , and  comments on  m o b i l i t y of  of  the  required The  the  value  f a c t o r s , as  to c o n t i n u e the added o f  the  potential linkage  g e n e r a t e d by (1973)  V.  dependent  the  raw  specific  mobility has  to  qualitative research  is  analysis.  processing  e f f e c t s and  material.  local  because of  c o n t e n d w i t h an  often  income  conditions.  Changes i n employee income t a x  of  two  general  i n d u s t r i e s i s a measure  the  economic  activity  V a l u e added was d e f i n e d  by  Reed  as: "the  selling  value  of  s h i p m e n t s , minus t h e  of manufacturing materials cost of  fuel  inventory  and  and  electricity  adjustment."  cost  s u p p l i e s , minus  consumed, p l u s  or  the minus  56 Reed  (1973) c o n t i n u e d  that, w h i l e  counting,  i t ignores  important  recovered  from s a l e s revenue.  variation  i n approaches  a  i n processed  Because o f t h i s  i s taken  value  double  e l e m e n t s o f c o s t w h i c h must  example t h e F e d e r a l F i s h e r i e s  salmon r u n  added e l i m i n a t e s  to measuring the  importance of i n d u s t r i e s For  value  by  size  a  be  considerable  and  economic  different organisations.  S e r v i c e measures the v a l u e  terms.  C a r e s h o u l d be  to ensure t h a t f i g u r e s of e q u i v a l e n t d e f i n i t i o n  are  of  taken  being  compared. j)  Recommendations f o r r e s o u r c e management a r e made f r o m  results  o f a n a l y s i s o f economic e f f i c i e n c y  impacts  ( i ) . The  tives  for forest  answers w i l l  weight given to each w i l l resource  rarely  be  allocation.  available,  (h) and  the e f f e c t s  t h e main c o n s t r a i n t s s h o u l d be  d i s c e r n a b l e and  important  decision-maker.  i n f o r m a t i o n f o r the  In the next applied  chapter,  to a f o r e s t  resource  t i o n of the p o t e n t i a l suggested  analysis.  the procedure conflict  possibilities  social  depend on  Although  objec-  definitive  of v a r i a t i o n will  developed  of  be  here is'  as a p r a c t i c a l  and  the  problems of  illustrathe  CHAPTER V I I EXAMPLE OF ECONOMIC ANALYSIS OF ENVIRONMENTAL CONSTRAINTS: THE SEYMOUR RIVER RESOURCE FOLIO 1. I n t r o d u c t i o n An i m p o r t a n t application For  this  chapter  part of this  paper, the procedure  farther  be  area  south  flows  and,  into  c o n s t r a i n t s i n the  i n t h e Kamloops F o r e s t  location  values  l o c a t e d i n t h e lower  salmon  established i n the previous  Peterson)  Seymour R i v e r  conflict  interest  along  t h e Seymour R i v e r  (south o f t h e r e s o u r c e  i n t h e a r e a was a r o u s e d  t h e Seymour R i v e r .  were i n v o l v e d a s t h e e s t i m a t e d  system.  by one o f t h e  a 400 m w i d e  6 00 ha e f f e c t i v e l y i n the f o l i o  the reserve i s s i t u a t e d  along  a r e a and i t s topography  i s favourable to logging.  timber  t h e main a c c e s s  v a l u e s was a p p a r e n t  i n salmon b e n e f i t s .  timber  S u b s t a n t i a l timber  high proportion of the b e t t e r s i t e s  foregone  timber,  spawning grounds f o r sockeye  c o n s t r a i n t s which s p e c i f i e d  reserve along  return  Lake.  include  (Oncorhynchus nerka) i n t h e F r a s e r R i v e r  Initial  in  which  and t h e m a i n c o n s t r a i n t s c a n  i n apparent  one o f t h e more i m p o r t a n t  original  District.  t h e Seymour Arm o f Shuswap  (Alces a l c e s andersoni  folio),  problems.  i n Appendix V I .  Major resource moose  life  i s c e n t r e d on t h e u p p e r Seymour R i v e r  showing t h e a r e a ' s  found  i s examples o f t h e  to r e a l  i s d e m o n s t r a t e d by e x a m i n i n g t i m b e r  study  Maps  of study  o f recommended p r o c e d u r e s  Seymour R i v e r R e s o u r c e F o l i o The  type  without  values  includes a area.  Also  into the f o l i o  any  A high obvious  cost  58 The  c o n s t r a i n t has s i n c e  "bargaining has  process"  been r e t a i n e d , a s  wildlife—timber)  described  this  and  The example  conflict  (salmon,  factors are  than t h a t  the d e t a i l , envisaged  presented i n  i n a common u s e  Here i t i s n e c e s s a r y t o d e t e r m i n e c r i t e r i a  t h a t may have w i d e a p p l i c a t i o n  salmon v a l u e s ) ,  to t h e author  (e.g.  discuss various used, data  inter-agency  I n t e r i o r o f B.C.  c o n t e n t s and i n some c a s e s  situation.  III.  and t h e c o n s t r a i n t s a n d c o s t  example a r e g r e a t e r  factors  i n Chapter  t h e type o f resource  common i n t h e s o u t h e r n The  c h a n g e d due t o t h e  files  (e.g.  employment e f f e c t s  t o study r e l a t i o n s h i p s that logging  and c o s t  are unfamiliar  i m p a c t on s t r e a m h a b i t a t ) a n d  cost concepts.  I f t h e p r o c e d u r e was  frequently  w o u l d become e s t a b l i s h e d a n d p r e v i o u s  studies  w o u l d be a v a i l a b l e f o r c o m p a r i s o n a n d r e f e r r a l . B e f o r e commencing a n a l y s i s , t h e s i g n i f i c a n t constraints are defined. alternatives  From t h e s e ,  timber  a r e d e t e r m i n e d and a b a s i c  environmental  harvesting  harvesting  schedule  constructed. The  impacts o f the  examined f i r s t . allowable of  The of  Important c o s t  elements i n c l u d e  cut e f f e c t s , selection logging  hauling  adverse  c o n s t r a i n t s on timber values a r e  and d i r e c t i o n a l f a l l i n g  skidding  foregone timber  environmental  and r o a d i n g .  Costs  a r e a l s o e s t i m a t e d and  i s commented o n .  moose r e s o u r c e  Logging  those of  i s implicitly  valued  f r o m t h e summary  values.  i m p a c t s on s t r e a m h a b i t a t factors during  and t h e i m p o r t a n c e o f  t h e salmon i n c u b a t i o n  r e v i e w e d a n d r e l a t e d where p o s s i b l e  t o t h e Seymour  period are River.  Salmon v a l u e s different  to  the  a  harvesting  i s recommended  for  c o n s t r a i n t area. Environmental  a)  Federal Fisheries Originally  reserve,  200  Constraints  Federal Fisheries stipulated a logging  m wide, e i t h e r s i d e o f the  m wide).  retained ii)  and  environmental r e s t r i c t i o n s  2.  400  corresponding  the r e s u l t s are d i s c u s s e d  strategy with  i)  then estimated  harvesting alternatives.  Finally,  the  are  For  free  Seymour R i v e r  purposes of comparison t h i s  (total  constraint is  i n the a n a l y s i s .  A f t e r d i s c u s s i o n between t h e F o r e s t  Fisheries  S e r v i c e , the  September o f  1977,  reserve  with  the  was  S e r v i c e and  the  Federal  c h a n g e d t o a b u f f e r zone i n  f o l l o w i n g timber  harvesting  r e s t r i c t i o n s p e r t a i n i n g to i t : 1) no 2)  landings  within  the  400  a 40 m m a c h i n e b u f f e r s t r i p  3) o n l y w i n t e r only  selective  5)  wherever p o s s i b l e f a l l i n g river any  t o be  along  strip; the  Seymour  River;  logging;  4)  6)  m wide  logging  permitted; of  trees within  40 m o f  the  d i r e c t e d away f r o m i t ;  f e l l e d material that enters  the  r i v e r must  be  removed; 7)  no more t h a n 25% the  Seymour R i v e r  1.  the  southern  2.  Blais  of the  b u f f e r zone on  either side  between: folio  C r e e k and  b o u n d a r y and  Kitson  Creek;  Blais  Creek;  of  60 3.  K i t s o n Creek and t h e n o r t h e r n  may be h a r v e s t e d 8)  twenty c h a i n s  w i t h i n a 25 y e a r  folio  boundary,  period;  o f r i v e r bank may be e x p o s e d t o s e l e c t i v e  h a r v e s t i n g , b u t a minimum o f 4 00 m o f u n l o g g e d bank must r e m a i n between e a c h s e l e c t i v e l y 9)  a l l deciduous wolf  10)  logged  area;  and n o n - m e r c h a n t a b l e s p e c i e s , s n a g s a n d  t r e e s s h o u l d be l e f t  road b u i l d i n g w i l l zone e x c e p t  river  s t a n d i n g , wherever p o s s i b l e ;  n o t be p e r m i t t e d w i t h i n t h e b u f f e r  where p h y s i c a l l i m i t a t i o n s  dictate  other-  wise . b)  Fish  and W i l d l i f e  Branch  i ) No r o a d b u i l d i n g w i t h i n 2 00 m o f t h e Seymour ii) and  Road t o be b u i l t  t o t h e t o p end o f t h e v a l l e y  t o t h e west s i d e o f t h e r i v e r w i t h i n t h e f i r s t  the h a r v e s t i n g l i c e n c e iii)  (to f a c i l i t a t e  I m m e d i a t e l y on c o m p l e t i o n  M  iv) Areas designated  x  wildlife  selective  100  other  roads  regeneration.  ( a l o n g the. Seymour R i v e r )  t o be  final  s a y on  cutting.  v) A r e a s d e s i g n a t e d or t r a i l s  two y e a r s o f  control).  permanent r e s e r v e s w i t h F i s h and W i l d l i f e h a v i n g local  ( n o r t h end)  of logging, non-essential  s h o u l d be r i p p e d up t o a l l o w f o r e s t  any  River.  M  than  2  ( a l o n g t h e Seymour R i v e r ) .  o f a seasonal  nature  should  No  roads  be b u i l t  within  m o f meadow e d g e s and no m a c h i n e r y w i t h i n 40 m o f meadow  edges.  No more t h a n  50% o f t h e c a n o p y  natural  r e g e n e r a t i o n s h o u l d be s o u g h t w i t h o u t  ( I n t e r s p e r s e d M. a n d M ±  River  from t h e southern  2  areas  should  extend  be removed a n d burning  along  of slash.  a  t h e Seymour  b o u n d a r y t o 2,00 m n o r t h o f K i t s o n  Creek).  61 vi)  No  logging  i s allowed  caribou  G m e l i n ) and  areas.  (However, t h i s  areas contain c)  goat  i n caribou  (Rangifer  tarandus  (Oreamnos a m e r i c a n u s c o l u m b i a e  i s not  restrictive  minimal merchantable  as  these  Rand)  constrained  forest.)  Protection Two  800  m wide f i r e  breaks running east  west a c r o s s  the  folio. i)  Fire  utilise ii)  break and  Logging w i l l  specific  No  the  fire  specific  considered the  in fire  b r e a k s and  s t a n d s a c t i n g as breaks are  c o n s t r a i n t s are  primary  not  conditions, b r e a k s when i t w i l l  then o n l y  the  fire lost  from the  Federal It  after a  logic  breaks  of  site  young  i n the  to timber  southern  zone e x t e n d i n g up boundary t o  requirement of  F i s h e r i e s and  basis of  supervision,  F i s h and  field  future  production.  manpower and  restrictions.  f o r i n some o f t h e  finance  the  and  How-  Seymour  selection logging  of  Kitson  stipulated  Branch.  these c o n s t r a i n t s  Factors  important  heading.  just north  Wildlife  decisions.  s t a t e m e n t s have an  various  allowed  folio  under t h i s  i s i m p o r t a n t t o remember t h a t  form the  the  included  recreation  Creek r e i n f o r c e s the  the  developing  to  Recreation  River  of  be  from time to time  study.  growing a d j a c e n t  ever, the  by  adjusted  w o r d i n g o f t h e s e c o n s t r a i n t s and  suggest that d)  only  f u n c t i o n of  field  The  be  m a x i m i s e c h a n g i n g and  enhance t h e  and  l o c a t i o n s may  of  only  administration,  individual interpretation  i m p a c t on  Substantial constraints.  the  flexibility For  p o l i c i n g of i s also  example,  the  possibility Fish  of  selection  and W i l d l i f e  logging,  Branch,  is  that  allowed  is  "amenable" to  for  in  the U  the  reserve  x  areas. 3.  The  In  this  not  Normal Operation exercise  a single  used as values  relative  to  elements, Reserves cut,  controls  are  costs  For  used  are  harvesting  comparative  the  in  individual  the  relevant  no r e s e r v e s ,  falling  salmon values  prescriptions  is  under  costing  are  cost  costing  sections.  selection with  considered the  clear  are  compared to  the  Environmental  Constraints  clear  cut  as an  various  is  expressed  timber  based on a p r o g r e s s i v e  and d i r e c t i o n a l  Similarly  for  management a l t e r n a t i v e s  compared w i t h  roading  cost.  of  control  one a n o t h e r .  are  cription  Situation  pres-  additional  timber  "undisturbed"  situation. 4. S i g n i f i c a n t a)  Reserve  b)  Selection  c)  Buffer  d)  Location  e)  Timing  This  logging  strip—directional of  of  choice  roads  road is  resource  of  the  folios  constraints  Although implications ignored  in  the for  this  for  in  landings  building  b a s e d on  and e s t i m a t i n g c o s t s of  and  falling  refer  timber  month's  environmental  the  fuel  four  these  breaks costs;  exercise.  constraints  Kamloops F o r e s t to  five  specified roading  Analysis  is  experience  examining  in  District.  a  number  Also  most  items. by in  protection  have  particular,  they  concentrated  on  the  are  63  interactions  between t i m b e r  v a l u e s and b o t h  salmon and moose  values. 5. Management The for  Alternatives  f o l l o w i n g f o u r management p r e s c r i p t i o n s  the a n a l y s i s  River. marginal  Increased analysis  more i m p o r t a n t a)  Full  of environmental coverage  form  the basis  c o n s t r a i n t s a l o n g t h e Seymour  s u p p o r t i n g an a p p r o x i m a t i o n  i s allowed  by s e n s i t i v i t y  to  analysis of the  variables.  400 m w i d e r e s e r v e a l o n g t h e Seymour R i v e r .  b) B u f f e r s t r i p  corresponding  t o the area of the reserve  strip: 50%  of area harvested  25 y e a r  pass.  leave period.  Selection c)  i n each  cutting with  10% r e s i d u a l  volume.  I n t e r p r e t a t i o n o f current environmental M  a  areas—permanent  M  2  areas—50% 50%  reserves.  of area harvested  i n each. p a s s .  Crown s e l e c t i o n w i t h  Reduction  constraints:  40% r e s i d u a l  i n % decay o f h a r v e s t from  volume. 30 t o  25. R o a d i n g t o n o r t h end i n f i r s t For balance  of r i v e r — t h e  two y e a r s .  same a s b) a b o v e .  d) S m a l l c l e a r - c u t b l o c k s . Not  examined r i g o r o u s l y  apparent  later  (because  of selection benefits  i n the a n a l y s i s ) .  Maximum b l o c k s i z e between f o u r a n d e i g h t h a , f i f t e e n year  leave period.  6.  Harvesting Unless  Schedules,  specified,  Timber  present  management a l t e r n a t i v e s  Cost  Elements  values  according  are  to  the  and D i s c o u n t  estimated following  for  Rate  the  harvesting  schedule. The River  zones  (refer  refer  to  to  the  Figure  following  8 - Appendix  sections  of  the  Seymour  VI).  Zone 1  Southern  2  B l a i s Creek  3  K i t s o n Creek  to  assumed t h a t  there  It third  is  of  adjacent The reserve  the to  folio, the  these  buffer  the  (see  operations  are  Effect  to  of  which  Creek.  Creek.  northern are  Blais  boundary.  five is  years  in  harvesting  the  area of  harvesting  outside  the  effects  of  refers To  to  illustrate  standard  Table of  on a l l o w a b l e  costs  Table  the  are  applied  1 are  to  considered,  and salmon v a l u e s .  examined under  interest  The  Costs  to  the  following  headings:  the  different  management  cut  cutting  falling  skidding  costs  appropriate  timing  particularly  Hauling  Adverse  river  operations  Roading  Directional  each  1).  on r o a d i n g  Selection  in  River.  variations  sections  Kitson  strip.  cost,  areas  -. F u r t h e r in  part  term standard or  boundary  to  Seymour  and o p p o r t u n i t y in  folio  to  timber  65 alternatives and  are then  aggregated  moose v a l u e s t h a t t h e y  f o r comparison w i t h  are designed  the  salmon  to p r o t e c t .  Table 1 Basic Year  Harvesting  Schedule  Total Merchantable Harvest per year (1 ,000 m)  L o c a t i o n of Harvest 15 y r leave period 25 y r leave period  85 71 71 71 64 64 71 71 71 71 71 71 71 71 71 71  Zone 1 and s t a n d a r d Standard Zone 2 and s t a n d a r d Standard Zone 3 and s t a n d a r d Standard Standard Zone 1 + s t a n d a r d Standard Standard Zone 2 + s t a n d a r d Standard Standard Zone 3 + s t a n d a r d Zone 1 + s t a n d a r d Standard Standard Zone 1 + s t a n d a r d Standard Standard Zone 3 + s t a n d a r d  3  1 2-5 6 7-10 11 12 13-15 16 17-20 21 22-25 26 27-30 31 32-35 36 The  term  " c o n s t r a i n t a r e a " as u s e d  the F e d e r a l F i s h e r i e s  400  A  and  Discount The  M  not researched  t i o n o f the e f f e c t s  of d i f f e r e n t  i s s u e remains undecided 10%  and  allows  discount rates.  open t o p e r s o n a l  f o l l o w s Teeguarden's  and  in detail  interpretaAlso,  main c o n f l i c t i n g  (1976) a r g u m e n t i n  (as i s t h e c a s e  resource  the  interpretation.  VI o f a higher d i s c o u n t r a t e f o r d e p l e t i o n of  surplus o l d stock of timber The  the  Rate  a n a l y s i s of the r e s u l t s  Chapter  to  areas.  2  s e l e c t i o n o f d i s c o u n t r a t e was  choice of  refers  the overlapping F i s h  because s e n s i t i v i t y  The  study  m w i d e r e s e r v e - b u f f e r zone a l o n g  Seymour R i v e r , p l u s t h e a r e a added by Wildlife M  in this  i s commercial  in this fishing,  the  example). a form  of  private rates  investment,  ( i . e . 10%  and  Effect  f o r Timber V a l u e s  on A l l o w a b l e  A f t e r m a k i n g an  Foregone  Cut  important  assumption  on  a summary o f s t a n d i n f o r m a t i o n i s g i v e n and volumes a r e e s t i m a t e d . stumpages a r e a p p l i e d  i)  Full  In t h i s fully  Forest D i s t r i c t and  t h e volume commitment 90%  volume commitment  includes  the  Seymour R i v e r f o l i o )  from  (B.C.F.S., 1976f and  has  1976e) t o 82%  p r o t e c t i o n areas  i s well  recently  i s examined.  through  forest  type:  i n excess  o f 8 0%  (B.C.F.S., (which  been i n c r e a s e d from  1976).  Currently  the establishment  of land a l i e n a t i o n  supply of a v a i l a b l e foregone  cut i s  Kamloops  figures  Report,  i s the  timber.  allowable cut  summarised d a t a a r e p r e s e n t e d  i n f o r m a t i o n on  Finally  (E.P.As).  o p p o r t u n i t y c o s t to timber  Determination of Only  govern-  the a v a i l a b l e  ( b a s e d on  B.C.F.S. A n n u a l  value of the reduced ii)  Other  i n t h e Shuswap P.S.Y.U.  the a l l o w a b l e c u t i s being r e v i s e d  The  variables  of the a l l o w a b l e c u t  The  environmental  alternatives,  rents.  F o r many o f t h e P.S.Y.Us i n t h e  1976e).  B.C.F.S.,  timber  commitment  i n some g r e a t e r t h a n  72%  foregone  stumpage) a r e d i s c u s s e d .  e x e r c i s e i t i s assumed t h a t  committed.  commitment  employment, v a l u e a d d e d and  o f some o f t h e i m p o r t a n t  volume  the  to estimate the foregone  ( t a x a t i o n and  the s e n s i t i v i t y  timber  F o r t h e v a r i o u s management  measures o f c o s t i n c l u d i n g ment r e v e n u e s  interest  plus).  7. O p p o r t u n i t y C o s t s a)  therefore subject to p r i v a t e  volume  here.  For  calculations  additional  and  sources  of  of  information refer  tive  t o Appendix  IV.  E a c h management  alterna-  i s considered i n turn.  Management a l t e r n a t i v e a : Fisheries  constraint).  species composition  Seymour R i v e r r e s e r v e s t r i p  Information  and f o r e s t  on m e r c h a n t a b l e  types  (Federal  volumes,  i s given i n Tables  2 and 3.  Table 2 Reserve' S t r i p : M e r c h a n t a b l e Volume i n M ( c l o s e u t i l i s a t i o n s t a n d a r d s 17»5 cm d.b.h. p l u s . a l l o w a n c e s f o r d e c a y , w a s t e and b r e a k a g e ) 3  Zone  F  C  H  Species B  S  P.W.  Total  "o  Less  Area (ha)  1  527  40923  14430  462  1976  362  58723  19-6  98  2  2118  66980  36990 1274  4596  711  112740  37»6  215  3  2393  52598  60464 3928  7354 1475  128311  42*8  295  Total o.  5038 160501 1-7  53.5  111884 56 6 3 139 26 2548 . 29 9773 37*3  1*9  4*6  Timber  100  Species  -  Douglas  C  -  Western r e d cedar  H  -  Western hemlock  B  -  Balsam-Subalpine  S  —• W e s t e r n w h i t e s p r u c e ( P i c e a g l a u c a v a r a l b e r t i a n a (S.Brown) S a r g . )  The  f i r (Pseudotsuga  Western white  apparent  anomaly  stocking.  The  i n t h e good  average  rotation  (Mirb.)  Franco.)  Donn)  (Tsuga h e t e r o p h y l l a ( R a f ) S a r g . ) f i r (Abies l a s i o c a r p a  (Hook.) N u t t )  (Moench) V o s s  (Pinus m o n t l c o l a  i n Table  Dougl.)  3 i s e x p l a i n e d by t h e  a r e a o f good f o r e s t  Hence t h e a v e r a g e  i s higher than  menziesii  (Thuja p l i c a t a  pine  existence of a substantial  years  1-1  F  P.W.  60 8  t y p e w i t h a low  v o l u m e p e r h a i n t h e medium  type  type. age f o r t h e Shuswap P.S.Y.U. i s 9 6  (B.C.F.S., 1975) . Using  the Hanzlik formula  the foregone  allowable cut i s  68  29 9773 96"  =  3123 m / y e a r 3  Table 3 Reserve S t r i p s : F o r e s t S i t e s by A r e a a n d M e r c h a n t a b l e Volume Zone Good ha  F o r e s t Type Medium ha  Total  Poor ha  1  60  38  98  2  81  134  215  3  127  110  57  295  Total  26 8  282  57_  60 8  44  46  9  100  131,822  149,149  18,802  299,773  44  50  6  100  Volume (m ) 3  Alternatively  t h e a n n u a l a l l o w a b l e c u t may be e s t i m a t e d f r o m  the p r o d u c t i v i t y  o f the next crop.  This  i s o b t a i n e d from t h e  a v e r a g e mean a n n u a l i n c r e m e n t a t c u l m i n a t i o n  age  (MAI)  1975).  Table 4 Reserve Site  S t r i p : M.A.I. - A l l o w a b l e C u t  MAI. (m /ha/yr)  Area (ha)  T o t a l MAI (m /year)  Good  3.85  268  1,032  Medium  2.45  282  691  Poor  1.6 8  57  96  3  Total  3  1,819  (B.C.F.S.,  The  higher  f i g u r e o f 3,123 m / y e a r i s u s e d  i n estimating  3  the o p p o r t u n i t y  costs t o timber.  Similarly  f o r the a l t e r n a t i v e  management r e g i m e s s t a n d i n g v o l u m e s a r e u s e d t o c a l c u l a t e t h e loss of allowable cut. Management a l t e r n a t i v e R e s i d u a l v o l u m e 10%. be cut  b:  Buffer strips  As i t i s v e r y  recoverable a t a later  date,  (selection  likely  logging).  that this  p o s s i b l e impact  volume w i l l  on t h e a l l o w a b l e  i s ignored.  Management a l t e r n a t i v e  c:  Interpretation of current  Environ-  mental C o n s t r a i n t s .  Table M  5 and M  ±  2  Areas:  Constraint C  H  Area B  S  P.W.  Total  (ha)  a  982  31335  17593  694  343  261  54204  115  M  2  2195  95291  45097  1365  4964  1053  150018  248  Federal Fisheries' and M For  i s an e s t i m a t e d  buffer strip  It  150,000 m  outside the f i s h  3  i n the and w i l d l i f e  c o n s t r a i n t areas.  2  the M  a  area  loss of total  e q u i v a l e n t t o (54204/96=). 565 m  not  3  M  In a d d i t i o n there  1  (m )  Species F  M  M e r c h a n t a b l e Volumes  i s estimated  available  3  per year  (see the s e c t i o n o f s e l e c t i o n  t o 46 9 m  total  o f 1,034 c u n i t s p e r y e a r  3  per year  Management a l t e r n a t i v e annual c u t .  d:  This i s  of allowable cut.  t h a t 30% o f t h e volume i n t h e M  equivalent loss  v o l u m e i s assumed.  2  cutting).  area i s This i s  reduction i n allowable cut.  Small  A  i n allowable cut i s obtained.  clear  cut blocks—no  loss of  70 iii)  F o r e g o n e stumpage  .  An e s t i m a t i o n o f c u r r e n t B.C.F.S. i n Appendix I I I . Table  t h e a v e r a g e stumpage r a t e s o f  6 have been c a l c u l a t e d .  allowable the  From t h e s e  stumpage r a t e s i s g i v e n  A p p l i c a t i o n of the e f f e c t  on  cut, and a d i s c o u n t r a t e o f 10% f o r e a c h , r e s u l t s i n  estimates  Table  o f the foregone  stumpage i n p r e s e n t  value  terms.  6 P r e s e n t V a l u e s o f F o r e g o n e Stumpage: Management A l t e r n a t i v e s a arid c  Stumpage Management alternative a  $1-45/m  Management (M alternative( c (M  3,123m  3  iv)  Present value a t 10%  $4,528  $45,280  $1»47  565  $831  $8,310  2  $1«61  469  $755  $7,550  in effect  only  one r o t a t i o n  p e r i o d has been  t h e a n n u a l amounts were d i s c o u n t e d  The d i f f e r e n c e i n d i s c o u n t i n g o v e r is  3  Annual stumpage  a  Although considered,  Loss o f annual allowable cut  96 y e a r s  i n perpetuity.  as a g a i n s t  perpetuity  minimal. Employment, v a l u e The  i n d i c e s used  Appendices  harvest  i n this  revenues  analysis are derived i n  I , I I and I I I .  1) Employment. processing)  added arid Government  D i r e c t employment  o f 1*2  and 1*4 man  a r e used t o e s t i m a t e  indices  years  ( l o g g i n g and wood  p e r 1,000 m  3  of log  r e g i o n a l and p r o v i n c i a l  impacts  71 respectively. additional centres  p r o c e s s i n g and h e a d o f f i c e p e r s o n n e l  and i n d u c e d e f f e c t s o f 1*8,  the l o c a l ,  multiplier and of  district  i n the l a r g e r  Employment m u l t i p l i e r s f o r 2*45 and 2*8  respectively  and p r o v i n c i a l l e v e l s a r e u s e d  o f 1*8 means t h a t  induced 1*8  index i s higher because o f the  (Vancouver i n p a r t i c u l a r ) .  indirect for  The P r o v i n c i a l  jobs are also  (a  f o r e v e r y d i r e c t j o b , 0*8  generated—a  indirect  t o t a l employment  effect  jobs).  The employment e f f e c t s may a) Management  alternative  be t a b u l a t e d  as  follows:  a:  L o s s o f employment p o s i t i o n s Provincial District Local Direct Direct, Indirect and I n d u c e d  4  4  4  12  9  7  F i g u r e s have b e e n r o u n d e d b) Management  alternative  to the nearest  position.  c:  L o s s o f employment p o s i t i o n s Provincial District Local Direct  1  Direct, Indirect and I n d u c e d Although  .4  t h i s type o f a n a l y s i s  continuous production function harvesting  and s a w m i l l i n g  closes  h e r e may  down c o m p l e t e l y .  contribute  1  3  2  implicitly  assumes a  i t must be remembered  operations are d i s c r e t e .  supply drops below a c e r t a i n mill  1  level a shift A decrease  t o s u c h an a c t i o n .  important to determine c r i t i c a l  supply  that I f timber  i s halted  i n s u p p l y as Local  levels.  or the outlined  knowledge i s In t h i s  situation appear 2)  the  p o s s i b l e decrease  i n p o t e n t i a l supply  Loss of  P r o v i n c i a l and  Federal  Government  P r o v i n c i a l manufacturers and employee t a x a t i o n  2*5  7,808  2,5 85  4,52 8  1,586  11,555  3,826  $23,891  $79,971  Stumpage Federal manufacturers and employee t a x a t i o n Total  assumed t h a t  and  and  necessary  the  to  this  a l l o w a n c e has  32  v)  i t is  p r o v i n c i a l economy.  Time  local  business  a l t e r n a t i v e job  labour;  the  information  point.  ( L o g g i n g and  benefits.  wood p r o c e s s i n g  $99,936/year  Shuswap  District  faces  economy f r o m t h e  Sources of  these reductions  forest  error - sensitivity  in  analysis  l o n g narrow shape o f t h e  reserve  and  the  map.  or b u f f e r  Also  strip  reserve  as  river  numerous t y p e b o u n d a r i e s make  to estimate.accurately  the  contribu-  industry.  The  difficult  industry)  $33,088/year  1) A r e a d e t e r m i n a t i o n .  it  oppor-  Management A l t e r n a t i v e s a c  3  to the  as  and  excluded  b e e n made f o r unemployment  $/m  tions  of  debatable  L o s s o f V a l u e Added.  The  i n the  i n v e s t i g a t e the  mobility  settle  taxes are  a l t e r n a t i v e jobs  e x i s t elsewhere  a v a i l a b l e to  tunities  No  induced personal  sufficient  opportunities not  3*7  a n n u a l Government Revenues  Indirect  Revenues.  Management A l t e r n a t i v e s a c  3  3)  not  crucial.  $/m  was  does  the  a r e a s i n v o l v e d on  drawn i s s u b s t a n t i a l l y w i d e r  the  than  73 400  m  i n the  southern  of the r i v e r .  p o r t i o n b e c a u s e o f numerous m e a n d e r i n g s  A b i a s to over  2) Volume d e t e r m i n a t i o n . information and  average volumes per figures exhibit  l o g g i n g waste. these A in  the  that  For  standard  substantially good f o r e s t  20%  varied  5%  Figure these  type  and  less  to the  costs,  volume t y p e s ,  these  25%.  Also  f o r breakage  has  and  been a p p l i e d t o  by  figures  will  be  estimated  annual  l e s s and f o r the  allowable  t h e a v e r a g e stumpage v a l u e s One  i s an o v e r a l l  residual and  the  tendency f o r capture trend.  an  accurate  average the  foregone area. to  add  cut.  stumpage r a t e s h a v e This i s well  i n Table  value  24  and  trend of  a p p r a i s a l system,the c o s t s o f  i n the c o n s t r a i n t area, precludes  real  is  than  reserve  noticeable general  declining  type  error i s unlikely  Over r e c e n t y e a r s  III.  forest  that the  w i t h market c o n d i t i o n s .  wages c o n t r i b u t e t o t h i s tions  zonal  i n the poor  that this  foregone  4 of Appendix  constraints,  and  allow  This suggests  indicate  significantly  Under t h e  volumes  greater p r o p o r t i o n of the reserve area  measurements.  illustrated  stand The  B.C.F.S. l o c a l  deduction  (volume c u l m i n a t i o n )  calculations  3) V a l u e  forest  of error.  the higher  a l l o w a b l e c u t more t h a n  more t h a n  expected.  factors.  r o t a t i o n age  Trial  is  d e v i a t i o n s o f as much as  f o r t h e w h o l e P.S.Y.U.  annual  source  i n f o r m a t i o n does n o t A  areas  specific  a r e b a s e d on  acre.  standard  average l i n e  cover  lack of  i s a major p o t e n t i a l  species composition  the  A  estimate  from  stumpages.  environmental  o f economic r e n t s  Lack o f knowledge o f  of o p e r a t i o n a l plans  and  by  condiof a c t u a l  estimation of harvesting costs.  This  and  the  variability  stumpage p r e d i c t i o n s . suggest., a low present the  value  the  Recent  of  foregone  estimation  of  into The  cost  social  the  labour  to the  conditions  and  for this  e i g h t y e a r s ago  Interest rate.  outlook  Finally  the  proportional  b e e n assumed.  In  to  production  a  reality  should  be  in  perpetuity.  5)  Summary.  form the  also  basis  l i k e l y magnitude.  Source of  error  true  time,  these  exercise. l a r g e l y d e p e n d e n t on  f o r the  are  discounting  e r r o r are  Limits are  to estimates used  reasons of  the  else-  market  figures  six  used.  P r o v i n c i a l averages.  Present values  Sources of  i n determining  For  in this  opportunities  example g r o s s a v e r a g e f i g u r e s from  i n t e r e s t r a t e u s e d as  refers  term  (employment e f f e c t s )  f o r c e and  P r o v i n c i a l economy.  V a l u e added f i g u r e s are  the  cost  important considerations  Government r e v e n u e s a r e  4)  short  to t h a t used.  forest industry  f a c t o r s have b e e n i g n o r e d  to  the  account.  m o b i l i t y of  where a r e  and  stumpage i s d i r e c t l y  f u n c t i o n has  d i s c r e t e nature of  taken  trends  confident  used.  continuous production the  timber p r i c e s prevent  stumpage r a t e c l o s e  stumpage r a t e In  of  inversely proportional i s of  listed  equal annual  i n the  analysis.  Variation  Area  0*8  -  Volume/acre  0*8  Volume  0•6 4 -  1-0 -1*2 1•2  amounts  i n i n c r e a s i n g order  subjectively derived.  One  to  (1)  of  75 Source of e r r o r  Variation  Interest  0»67  -  2»0  0*25  -  1-5  rate  Stumpage All  errors  listed  (5%-15%)  ($0'4/cunit-$2»0/cunit)  have p r o p o r t i o n a l  e s t i m a t e o f f o r e g o n e stumpage  e f f e c t s on t h e  values.  The s o u r c e s o f l e a s t c o n f i d e n c e and g r e a t e s t of  variability  e s t i m a t e s a r e t h e m a r k e t f a c t o r s o f stumpage and i n t e r e s t  rate. b) S e l e c t i o n  Logging  Management a l t e r n a t i v e s b and c s p e c i f y in  close  tion  proximity  t o t h e Seymour  of the Federal  former a diameter  to harvest trees.  for this  limit  part  interpreta-  In the l a t t e r  of the a n a l y s i s .  c u t i s assumed w i t h  as much volume as p o s s i b l e ,  leaving  (1970);  advantages, r e s u l t i n g from u s i n g  In  the objective only  a quality selection operation  D o b i e , M c B r i d e and M c i n t o s h  canopy t o l e a v e  Personal  F i s h e r i e s and t h e F i s h a n d W i l d l i f e  c o n s t r a i n t s forms- t h e b a s i s the  River.  selection cutting  the  smallest  i s modelled.  indicated substantial  cost  the c o n s t r a i n t of 50% r e s i d u a l  t h e most d e c a d e n t t r e e s  as w e l l  as the  smaller  stems. A lack in  r e l i a n c e on d a t a  Forest  Service  Possible  ting  cost  more d e t a i l V.  information  has r e s u l t e d  f r o m n e a r b y c u t p e r m i t s and on t h e 19 7 7  a p p r a i s a l manual f o r t h e Kamloops F o r e s t  before  possible  Appendix  s t a n d and c o s t  f o r e s t management i m p l i c a t i o n s  discussed,  For  of s p e c i f i c  estimating  District.  of selection logging  are  m e r c h a n t a b l e v o l u m e s and i n v e s t i g a -  e f f e c t s of the proposed h a r v e s t i n g  on t h e e s t i m a t i o n  of harvesting  costs  regimes. refer to  76 I)  F o r e s t management It  the  i s important  feasibility  mined  considerations to f i r s t  (Thompson,  1977).  The  structure can  volume f i g u r e s show a  hemlock, w i t h  (see T a b l e  2).  The  age  53•5 and  c l a s s e s and  t r e e s a r e mature o r overmature w i t h decay  t o be  be  before deter-  high  37*3 p e r  cent  of  (but a t a h i g h e r  percentage of spruce  trees  there  i t may are  selection  be  and  less  than  20  site  of  use  of the  specific  site  data  s m a l l t r e e s from 2 0 to 4 0  cm  With the  no  d.b.h.  of  are  may  be  less  Seymour  o f the  small  f i g u r e s are  avail-  advanced  It i s quite  of the  small  f o r the  that a majority  composition  c u r r e n t l y one  nearby of  encourage the growth of a  A l s o advanced r e g e n e r a t i o n than f u l l  the  percentage  Unfortunately  cm  located  a significant  "balsam."  expected  species  logging w i l l  dominated stand,  and  types  " b a l s a m " 'estimated  hemlock.  for density  regeneration  and  with  a l l the  d.b.h. a r e h e m l o c k , s p r u c e  stands  suggest that  a s u b s t a n t i a l volume  for similar  a t t i t u d e and  s p r u c e ) shows t h a t n e a r l y  River  site  expected.  A diameter d i s t r i b u t i o n  and  stand  t o t a l m e r c h a n t a b l e volume i n t h e F e d e r a l F i s h e r i e s b u f f e r  zone  able  the  of a s e l e c t i o n l o g g i n g o p e r a t i o n  p e r c e n t a g e o f c e d a r and the  assess  likely hemlock  preferred  species.  inadequate r e s u l t i n g  f o r timber required  growth. to  Field  fully  that  in  less  inspections  examine  these  possibilities. In the the is  folio on  lower h a l f o f the  area,  v e r y wet  Seymour R i v e r ' s  passage  a considerable  p r o p o r t i o n of the  soils  to the  adjacent  river  and  through  forest  stands  swampy meadows.  C l e a r c u t t i n g o f t h e s e s t a n d s may w a t e r t a b l e c a u s i n g problems  result  i n regeneration  R e t e n t i o n o f 50% o f t h e Crown c o v e r may ii)  Merchantable Diameter  distributions  available  Table  of the  i n some a r e a s .  reduce t h i s  tendency.  volumes  nearby c u t p e r m i t formed volumes  in a rise  f o r two  similar  forest  types i n a  t h e b a s i s f o r e s t i m a t e s o f merchantable  i n the proposed s e l e c t i o n  logging  operations.  7 S p e c i e s C o m p o s i t i o n and Volumes i n Comparable S t a n d s : R e s e r v e S t r i p and N e a r b y C u t P e r m i t s  F o r e s t type Species Cedar  ) ) % of Hemlock ) c u . ) volume Spruce ) T o t a l merchantable v o l u m e p e r ha (m ) 3  On forest  types, r e s i d u a l  f o r the f i s h  The b a s i s ill)  62  44  54  15  36  37  22  17  5  570  510  495  volumes and  40%  and w i l d l i f e  harvesting  Potentially  (of which  constraint  75%  f o r the  i n alternative c). i n Table  8.  costs f o r compari-  and a s e l e c t i o n h a r v e s t i n g o p e r a t i o n may  size  two  i s permanently  important harvesting cost f a c t o r s  son o f a c l e a r c u t as p i e c e  f o r these  were e s t i m a t e d a t 10%  f o r t h e s e s t a t e m e n t s i s summarised  Timber  listed  R i v e r Reserve (average)  the b a s i s o f the diameter d i s t r i b u t i o n s  management a l t e r n a t i v e b) lost)  H (PW) -831-M  CH-941-M  effects,  volume p e r h a ,  interference  be or  78 care  to avoid  quality  residual  trees,  r o a d i n g r e q u i r e m e n t s and t i m b e r  considerations.  Table 8 Relevant Diameter D i s t r i b u t i o n I n f o r m a t i o n for Selection Logging  CH-941-M  39% o f stems a n d 8*6% o f volume l e s s d.b.h.  t h a n 40 cm  H(PW)-831-M  37% o f stems and 9 » 5 % o f volume l e s s d.b.h.  t h a n 40 cm  CH-941-M  60% o f stems a n d 3 1 » 5 % o f volume l e s s d.b.h.  H(PW)-831-M  58% o f stems a n d 27% o f volume l e s s d.b.h.  CH-941-M  50% o f stems l e s s t h a n 40 cm d.b.h. and d i s p e r s e d through other diameter c l a s s e s . C o n t r i b u t e 35 t o 40% o f t h e v o l u m e .  H(PW)-831-M  50% o f stems l e s s t h a n 40 cm d.b.h. a n d d i s p e r s e d through other diameter c l a s s e s . C o n t r i b u t e 30 t o 40% o f t h e v o l u m e .  t h a n 55 cm  I t i s assumed t h a t d e c a y i s n o t n e c e s s a r i l y trated i n the largest trees.  The c o s t s o f a l l o w a b l e c u t r e d u c t i o n ments a r e e x a m i n e d i n o t h e r For  concen-  and r o a d i n g r e q u i r e -  sections.  t h e low r e s i d u a l v o l u m e  that the cost difference  t h a n 55 cm  (10%) o p t i o n  from c l e a r c u t t i n g  i t i s suggested  will  be s l i g h t .  Volume p e r ha h a r v e s t e d i s r e d u c e d b y o n l y 10% f r o m an a v e r a g e of  495 m /ha.  leaving benefits  3  Some p i e c e s i z e  the smaller trees.  advantages  However f o r s i m p l i c i t y  a r e c o n s i d e r e d t o be o f f s e t  t u r n around  times r e s u l t i n g  may be e x p e c t e d  from  by s l i g h t l y  from  these  slower skidder  interference of residual  trees.  79 Also  r e t a i n i n g the small  trees  ( o f t e n have a l o w e r  % decay  content  t h a n l a r g e r t r e e s ) may r e d u c e t h e q u a l i t y o f t h e  harvest  i n terms o f p r o p o r t i o n  The  c o s t i n g procedures  o f d e c a y e d wood.  f o r the c o n s t r a i n t s p e c i f y i n g a  minimum r e s i d u a l crown c o v e r  o f 50% was t o i n c o r p o r a t e t h e  benefits of leaving the smaller a  t r e e s and t h e d i s a d v a n t a g e s o f  l o w e r volume p e r ha i n t o t h e h a r v e s t i n g  a r e assumed t o be e x p r e s s e d further to  assumed t h a t  costs of harvesting  different  been s e t a t z e r o . as d o l l a r s / m  o f sound wood. increase  (Dobie,  I ti s  i n proportion  1976).  Table  categories  t h a n 50% d e c a y w i l l  I ti s  n o t be  9 E f f e c t o f % Decay on H a r v e s t i n g Cost per m o f Firmwood 3  Extra  costs  ($/ha) r e s u l t i n g  Clearcut 0  of  the costs are  harvested.  % Decay  9 shows  i n timber  a d d i t i o n a l t o t h e base c o s t .  assumed t h a t l o g s o f g r e a t e r  Table  costs  The b a s e c o s t o f 0% d e c a y c l e a r c u t  For the other 3  These  (excluding roading)  percentage decay.  expressed  3  firmwood c o s t s w i l l  the percentage o f decay present  relative  has  as p e r m  costs.  from  Selection  0  0-21  10  1-31  1*54  15  2*10  2»33  20  2»95  3*21  25  3«93  4-21  30  5«05  5*35  35  6«35  6«67  40  7*86  8«21  decay  80 Before  specifying  figures  examine t h e p o s s i b l e e f f e c t s harvested  timber.  I f the harvested decay content then  Table timber  o f 20%  10  9 i t i s u s e f u l to  of s e l e c t i o n  on  of pre-harvest  the r e s i d u a l  t h a t o f t h e c o m b i n e d volume  represents  the d i f f e r e n c e i n decay c o n t e n t  Table  and  t o be  28%.  The  example.  contains  (available  i s calculated  an  the  volume) has  timber  operation)  between c l e a r c u t t i n g  % decay i n  i s b e s t e x p l a i n e d by  (60%  and  from T a b l e  in a  a  4 0%  clearcutting  d i f f e r e n c e of  28-20  of harvested  the d e f i n e d s e l e c t i o n  decay  timber  operation.  10  P e r c e n t a g e Decay I n C l e a r c u t and S e l e c t i o n O p e r a t i o n s ( f i g u r e s are average percentage decay) Harvest (selection-60% of t o t a l volume)  For  Residual (40% o f t o t a l volume)  10  40  28  8  30  40  34  4  this  this  $0*84 p e r m  3  Milling 1975,  show an  reduction  e x e r c i s e the  s e l e c t i o n o p e r a t i o n i s assumed  of  t o 25.  to  From  or a saving  of  harvest.  c o s t s f o r N o r t h w e s t e r n h e m l o c k and estimated  Difficulty  cludes  f r o m 30  i s e q u i v a l e n t t o 5*05 minus 4*21  i n decay per  interference  Total minus Harvest  20  reduce the h a r v e s t decay percentage Table  Total  savings cent  f r o m 30  in establishing  factor  resulting  i t from the a n a l y s i s .  of  the  $1*32 p e r m t o 25 likely  from the Leaving  3  cedar, of  (Dobie,  logs for a 1976).  c o s t impact  residual  for  of  the  trees, pre-  the decadent t r e e s  may  81 c r e a t e a s a f e t y problem^ regulation result  60*38.)  (Workers C o m p e n s a t i o n B o a r d ,  Falling  t h e most u n s t a b l e  in additional costs.  species composition  resulting  the c a l c u l a t i o n s .  cedar  and  40%  stumpages o f  from  average To  and  (would  expect  are  ignored  A change i n h a r v e s t c o m p o s i t i o n  $0*4  cedar per m  stumpage f r o m  $1*43  complete  a n a l y s i s of  this  selection  i n favour of cedar)  hemlock t o 80%  $2*12  trees could  P o s s i b l e b e n e f i t s o f changes i n  s e l e c t i o n a g a i n s t h e m l o c k and in  to  and  20%  $1*77  per  changes  the  3  cutting  l o g g i n g and  effects,  sawmilling  are presented  i n Table  11 .  Table  11 Present Values of Selection B e n e f i t s in M Areas 2  Prescription  iv)  Present value at  Dispersed harvesting 15 y e a r l e a v e p e r i o d 25 y e a r l e a v e p e r i o d  $89,267 78,674  F i r s t pass h a r v e s t of c o n s t r a i n t area i n 2 years 15 y e a r l e a v e p e r i o d 25 y e a r l e a v e p e r i o d  109,266 96,297  Sensitivity  variable.  10%  analysis  A range o f p o s s i b l e v a l u e s  i s estimated  Comments p r o v i d e r e a s o n s  60%  m.  selection  the r e s u l t s  from  hemlock, a t  respectively,  3  the present value of the estimated s a v i n g s a r e - c a l c u l a t e d and  1978  f o r each major  for estimates.  82 One  (1) r e f e r s t o  T o t a l volume Residual  (from  volume  and  the  50%  f i g u r e used  s e c t i o n on  0*75-1*25  i n the c a l c u l a t i o n s .  allowable  A  c u t e f f e c t s ) 0*64-1*2  r e s i d u a l volume o f between  f o r a q u a l i t y s e l e c t i o n r e t a i n i n g 50%  30%  Crown  cover. Interest  rate  with  a  Reduction to  0*8-1*3  15 y e a r  leave  i n % decay  10%  total  and  and  forms t h e b a s i s described Harvesting  r e s i d u a l stand's  f o r the  c o s t s , two  For  v a r i a b l e s are  than  to the  % decay a x i s ) .  each of  3  the  o f decay.  It  benefits  by  the  in costs  e l e m e n t and  effective.  i n decay  of for  One  decrease  from h i g h  from a lower l e v e l  provides  initial  (the c o s t curve  phases i s not  the  i n decay.  decay  i s convex  I t i s assumed t h a t t i m e p e r  harvesting  is  stem  significantly  p e r c e n t a g e o f decay i n stems.  0*6-2*7  curves  between  sawmilling  greater  i s that a d e f i n e d d e c r e a s e  levels  Sawmilling  and  both t h i s  g r e a t e r b e n e f i t s when i t o c c u r s  affected  t o 20%  for a variation  i n firmwood c o s t s w i t h  other  for  a range of  content  harvesting  0*64-2*5 3  sawmilling  The  This represents  a d i f f e r e n c e o f up  $2*12 p e r m .  decrease  option  below.  benefits  $0*53 t o  harvesting  period.  0*67-2*0  covers  stand's  5%-15% f o r d i s p e r s e d  ($0•71-$3•53/m ) 3  f o r N o r t h w e s t e r n B.C.  Obtained  c e d a r and  from  hemlock  1975  cost  (Dobie,  1976) . Species  selection  Depends on well  as  $0-$0*71/m  relative  species  3  Not  allowed  stumpage r a t e s and  composition  and  f o r i n the a n a l y s i s . species value  distribution.  as  83 Scheduling  (timing)  i m p a c t on t h e p r e s e n t  of the harvest  value.  has a  significant  The s o o n e r t h e l o g g i n g  operation,  t h e weaker t h e i m p a c t o f d i s c o u n t i n g a n d t h e g r e a t e r t h e selection value.  This  range o f p r e s e n t  values  from  i s well  f o rdifferent  important  harvesting  and decay  estimates  information  o f measuring  interest  i n relatively  schedules  are very  easy t e r r a i n .  i ti n standing  trees.  Decay i s  and t h e d i f -  Market f a c t o r s o f  a n d stumpage r a t e s a r e o f s e c o n d a r y  importance  here.  Roading The  two  environmental c o n s t r a i n t s described  m a j o r p o t e n t i a l i m p a c t s on r o a d i n g  costs  extraction.  These a r e t h e c o s t s o f road  accelerated  dispersal of logging a c t i v i t y  For  the  In t h e southern  swamp a r e a s  from t h e r i v e r  earlier,  f o r timber  throughout the area. additional cost i s  section of the r i v e r  make i t n e c e s s a r y  slopes.  wording o f t h e c o n s t r a i n t s allov/s f o r f l e x i b i l i t y road  i n the r e s e r v e - b u f f e r area  i s felt  i f necessary  t h a t o f g r e a t e s t c o n c e r n are t h e  strips,  reserves  roading  requirements,  Many s t u d i e s  i n particular,  t o l o c a t e the road  a t the base o f t h e v a l l e y  suggest  l o c a t i o n and t h a t o f  t h e former i t would appear t h a t l i t t l e  involved.  It  11, b y t h e  of selection cutting costs  g r e a t e s t problem because o f i t s v a r i a b i l i t y  ficulty  c)  f o rconfident  cedar-hemlock stands  the  i n Table  $79,000 t o $109,000. Stand volume, s p e c i e s  in  illustrated  w e l l away  Also the t o locate the  t o avoid  effects  obstacles.  of leave  and s e l e c t i o n c u t t i n g o n i n c r e a s i n g e a r l y hence  expenditure.  f o l l o w t h e B.C.F.S. a p p r a i s a l p r o c e d u r e o f  84 full  a m o r t i s a t i o n o f t h e c o s t s o f secondary  c u r r e n t operation or h a r v e s t i n g pass.  roads  To a l l o w f o r p o s s i b l e  f u t u r e b e n e f i t s (e.g. road a l r e a d y formed), here  t h e method  time  prescribed  logging  The  f o r t h e whole f i r s t  analysis  harvest  t o an o u t l i n e  a summary o f t h e r e s u l t s .  from  definition  Comments o n t h e s e n s i t i v i t y  t h e a s s u m p t i o n s and v a r i a b l e s  1)  Basic  complete  assumptions  constraint  a r e a a l o n g t h e main a c c e s s  route  R o a d i n g c o s t : A v e r a g e o f $6,215/km.  into  the f o l i o  T h i s i s based  on  t h e 1977 A p p r a i s a l M a n u a l f o r t h e Kamloops F o r e s t  operations.  4) A r e a  harvested  varies with  In the c o n s t r a i n t  Outside  area  the constraint  i n each pass:  the p r e s c r i p t i o n .  Road r e d e v e l o p m e n t c o s t s :  only half of this of  Location of the area  a high roading density.  3) Volume p e r h a :  5)  o f some  the exercise.  1) Road d e n s i t y : 1 km t o 25 ha o f f o r e s t .  cut  of the  o f t h e m e t h o d o l o g y and t h e n t o  of  suggests  including a l l  passes. follows i n order,  b a s i c assumptions  from  used  i s t o c a l c u l a t e a present value o f the flow of roading  c o s t s over  2)  on t h e  i s allowed  490 m /ha 350  m /ha.  In the c o n s t r a i n t Outside  4 0%  District.  for clear-  3  area  3  area i t  i t i s 50%.  o f new r o a d c o s t s .  However  f o r i n the c o n s t r a i n t area  t h e l a r g e p r o p o r t i o n o f main a c c e s s  figures  because  road r e q u i r i n g c o n t i n u a l  maintenance. 6) Road m a i n t e n a n c e c o s t s : l a r g e main a c c e s s  road  These a r e i g n o r e d because o f the  component r e q u i r i n g  annual  maintenance  to  service operations  allowance 7) S m a l l  at higher  altitudes  and b e c a u s e o f t h e  f o r redevelopment c o s t s . clearcut blocks:  Assume an a d d i t i o n a l  20% r o a d i n g i s  required. 11)  Procedure The  If  basic harvesting schedule  p r e v i o u s l y o u t l i n e d i s used.  a d d i t i o n a l volume i s r e q u i r e d t o t h a t a v a i l a b l e  management p r e s c r i p t i o n  under t h e  i n t h e r e l e v a n t zone i t i s assumed t o  come f r o m t h e s t a n d a r d i s e d h a r v e s t i n g c o n d i t i o n s o u t s i d e t h e constraint area.  A l lthe roading  to the f i r s t  a t 10% d i s c o u n t r a t e a n d a r e added  to provide is  year  expenditures  the present value o f the roading  are discounted  costs.  the comparison o f a p r o g r e s s i v e c l e a r c u t , w i t h  s y s t e m w h i c h has a 25 y e a r  together An  example,  a 50% p a s s  l e a v e p e r i o d between p a s s e s  (Table  12) .  Table  12 Example o f D e t e r m i n a t i o n o f Present Value Roading Costs  Year  1 6 7 11 12 16 21 26 31 36 Total  Progressive clearcut (in c o n s t r a i n t area) Roading Present value Expenditure ( a t 10%) $42,800 35,700 35,700 32,140 32,140 100,000 100,000 100,000 100,000 100,000  $42,800 22,166 20,153 12,390 11,265 23,940 14,860 9,230 5,730 3,56 0 $166,094  50%  pass  Roading Expenditure $102,800 71,400 100,000 64,280 90,000 100,000 100,000 48,560 14,280 22,848  system Present v a l ( a t 10%) $102,800 44,332 56,450 24,780 31,545 23,940 14,860 4,482 818 814 $304,821  86 Table  13 R e l a t i v e Present Value Roading Costs f o r Management A l t e r n a t i v e s  Management Prescription  Leave Period (yrs)  Discount Rate (%)  Relative Present Value o f Road Costs ' (?)  Progressive clearcut  10  0  Progressive c l e a r c u t  5  + .126,426  Progressive clearcut  10  - 28,660  10  118,959  5  236,108  Specific Assumptions  Roading costs i n "other" areas are h a l f that o f basic assumptions  50% clearcut  15  50% clearcut  15  50% c l e a r c u t  25  50% c l e a r c u t  15  10 10  138,727 34,206 Roading costs i n "other" areas are h a l f that o f basic assumptions  25% clearcut  15  10  213,615 plus  25% c l e a r c u t  15  10  Management a l t e r n a t i v e a 100% reserve  166,309 Roading density i n cons t r a i n t area i s 60% o f basic assumption  10  Management a l t e r n a t i v e b (low r e s i d u a l selection) 15  269,349 Only main access road along r i v e r and across r i v e r considered  10  137,161  25  10  154,531  Management a l t e r n a t i v e c Current constraint 15 interpretation 25  10  179,041  10  189,469  25  10 10  Management a l t e r n a t i v e d Small block s i z e 15  159,930 ) Harvest f i r s t pass o f 175,898 ) ^ v e r s t r i p i n f i r s t two years.as road.is b u i l t t o northern end  10  139,713 ) Assumed 20%  25  10  158,823 )  15  a  d  d  i  t  i  o  n  a  l  roading  87  Table 1 2 shows t h a t r o a d i n g i n t h e 5 0 % pass system c o s t s an a d d i t i o n a l  $138,727  i n p r e s e n t v a l u e terms a t  i n compari-  10%  son t o a p r o g r e s s i v e c l e a r c u t . ill)  Results This s e c t i o n includes a l i s t of the r e l e v a n t present value  r e s u l t s t o g e t h e r w i t h s p e c i f i c assumptions as r e g u i r e d (Table 13).  P r e s e n t v a l u e s a r e expressed r e l a t i v e t o t h e p r o g r e s s i v e  c l e a r c u t r e s u l t i n Table 1 2 . D i s c u s s i o n o f t h e r e s u l t s f o l l o w s i n t h e s e n s i t i v i t y a n a l y s i s and i n t h e s e c t i o n s on moose and salmon v a l u e s . iv) S e n s i t i v i t y analysis 1) Discount r a t e .  I n Table 1 3 the present value roading c o s t  f o r t h e management a l t e r n a t i v e s o f p r o g r e s s i v e c l e a r c u t and a 5 0 % pass system a r e c a l c u l a t e d a t b o t h 1 0 % and 5 % .  The t o t a l  p r e s e n t v a l u e i s shown t o be v e r y s e n s i t i v e t o i n t e r e s t r a t e . With r e l a t i v e p r e s e n t v a l u e s o f $126,426  and  $236,108  at  5%.  0  and  $118,959  at  10%  and  The d i f f e r e n c e s i n p r e s e n t  v a l u e c o s t between t h e management o p t i o n s a r e a l o t l e s s . 10%  this i s $118,959,  example a t  2.1/2%  at  5%  $109,682  i t i s$84,415.  s e n s i t i v i t y o f comparative  At  and t o c o n t i n u e t h e  I t would appear t h a t t h e  r e s u l t s t o d i s c o u n t r a t e between 5 %  and 1 0 % i s r e l a t i v e l y s m a l l . 2 ) Roading c o s t .  In t h i s a n a l y s i s the general f i g u r e s given i n  the F o r e s t S e r v i c e A p p r a i s a l manual have been used.  It i s felt  t h a t a c t u a l r o a d i n g c o s t s may be somewhat h i g h e r as b r i d g e s and l a r g e c u l v e r t s have n o t been a l l o w e d f o r , and a s u b s t a n t i a l  88 p r o p o r t i o n o f the interesting difference  roading w i l l  to note,  be m a i n a c c e s s .  i n a recent  study,  i n roading cost estimates  between t h e B.C.F.S.  (lower  of  o p e r a t i o n i n the C h i l l i w a c k F o r e s t  3)  Relative roading costs.  fore in  the  of  the roading  and less  cost.  logged  the  c o n s t r a i n t area  For  Road d e n s i t y .  Typically In the  along  not  Layout  i n some s l i g h t  costs.  For r e l a t i v e areas,  costs.  pass o f the i n years at  lower  1,  6  leave period.  outside  the economic  low  as  20  i n the  i s constructed  ha  of  forest  Interior.  f o r the  first  assumed t h a t a l l r o a d i n g was l o c a t i o n of the  f o r the  entire  folio  road d e n s i t i e s  between t h e  comments a p p l y  to those  pass.  required  c o n s t r a i n t area area.  upward b i a s t o t h e r o a d i n g p r e s e n t  similar  river  $189,469  t h e r e w o u l d be  f o r areas  pass because o f the route  values  first.  f i g u r e s o f as  i t was  first  i s estimated  costs are  areas  a l l the r o a d i n g  t h e main a c c e s s  roading  value  There-  present  2 instead of  (everything e l s e equal)  have been o b s e r v e d  first  other  roading  prescribe logging  $10,000 f o r a 2 5 - y e a r  i f the r o a d i n g  result  and  1975).  are the t o t a l  1 and  i n present  calculations  the  lower  example i f t h e  to harvest these  a r e a p e r km  for  the  during years  savings  Conversely  4)  (Benskin,  T h i s a n a l y s i s assumes t h a t  $175,898 o r a r o u n d e d  incentive  $19,270/km  f o r e s t company f o r  t h a t management a l t e r n a t i v e s  c o n s t r a i n t area,  11  the  or  c u n i t are higher o u t s i d e the c o n s t r a i n t area.  the e a r l i e r  zone was  i t is  substantial  130%  f i g u r e ) and  an  c o s t s per  the  Also  This  may  value  c o n s t r a i n t area as u s e d  under  89 5) H a r v e s t  schedule.  This factor  i s very  the  i m p l i c a t i o n s of d i s c o u n t i n g over  Two  main elements are  the  initial  harvest  important  different  involved; that of the  and  t h a t of the  because  time  of  periods.  t i m i n g and  scale of  l e a v e p e r i o d between  harvests. The harvest  b a s i c m o d e l u s e d assumes t h a t t h e p e r i o d , 5 i n each o f the  move n o r t h w a r d s on the  and  Wildlife  t h e n o r t h end take  straint  of the  area  should  spread  to areas  present year  value  roading  with  Table  effect  13.  25 y e a r  The  of  costs f o r these  costs  i f the r e l a t i v i t y  to reopen roads area, then  area) would r e s u l t  is built  first  two  to  years.  h a r v e s t i n g of" t h e  con-  construction before  a l t e r n a t i v e s with at  $10,000  As  elsewhere the  longer  i n a higher  leave period  present  value  in  15 y e a r  and  When  leave period  present  o f r o a d i n g c o s t s was  longer  i n a lower  a 25  $10,000.  to $20,000.  e l s e w h e r e were a l s o l o w e r the  The  leave period i s i l l u s t r a t e d  c o n s t r a i n t area) r e s u l t s  constraint  t h a t a road  i s estimated  l e a v e p e r i o d ranges from  Conversely,  operations  intervals.  v a l u e d i f f e r e n c e between a  the r o a d i n g c o s t s are h i g h e r the  year  r o a d i n g c o s t s , the d i f f e r e n c e i n  length of  present  that  f u r t h e r away f r o m t h e r i v e r .  l e a v e p e r i o d between p a s s e s The  road  a 15  t h r e e d e f i n e d zones i n  Seymour R i v e r w i t h i n t h e  proceed  has  z o n e s and  at 5 year  constraints specify  mentioned under r e l a t i v e  (in  The  advantage of t h i s requirement,  operations  a  front.  c o n s t r a i n t area are harvested  Fish  To  a broad  three  folio  value  reversed  than  in  cost. and  the  (in the c o n s t r a i n t  cost.  90 6)  Summary.  estimates roading (based  The  roading  costs, roading  a l l have p r o p o r t i o n a l e f f e c t s  costs. on  Company e s t i m a t e s  experience)  possible  error.  should  One  intensity on  of the  volume  the present  first  substantially  (1) r e f e r s  and  two  value  factors  reduce the range  to the estimates  used  of  i n the  analysis. Roading c o s t s  0*8-2*0  Roading i n t e n s i t y Volume  ($5,000-$12,000/km)  0*5-1*2  (20 ha-70 ha/km)  0*64-1•2  R e s i d u a l volume  0*75-1*25  From t h e  s e c t i o n on  selection  logging. Scheduling Present as  or timing of  values are  the present The  investment  increasingly  i s very  sensitive  important.  to changes i n t i m i n g  i s approached.  r e l a t i v e magnitude o f r o a d i n g  c o n s t r a i n t a r e a as  compared t o t h o s e  costs inside  the  outside i s also  very  important. Finally tives) d)  comparative  are not very  Hauling The  results  sensitive  (comparing  to i n t e r e s t  that d i s p e r s a l of havesting  t h e a v e r a g e h a u l d i s t a n c e and  any  a d d i t i o n a l cost occurs  only  t o as w e l l a s  i n the  a r e a s may  f u r t h e r from t h e  sawmill  the  activity  s y s t e m may  therefore costs.  advancement o f l o g g i n g i n o t h e r  closer  rates.  l o n g n a r r o w shape o f t h e c o n s t r a i n t a r e a a l o n g  a s e l e c t i o n c u t t i n g or a pass c l e a r c u t t i n g  this  alterna-  Costs  Seymour R i v e r s u g g e s t s  that  management  by  increase  I t i s assumed  c o n s t r a i n t area occur  as  in locations  o r booming  area.  i)  D a t a and a s s u m p t i o n s From t h e F o r e s t  used  include:  S e r v i c e A p p r a i s a l Manual  Hauling  c o s t per hour  Average  load  34  assume a v e r a g e t r u c k Additional  m  $26.70  3  s p e e d o f 24  average haul  km/hr  distances:  - F o r a 5 0% c l e a r c u t p a s s s y s t e m compared progressive  c l e a r c u t 2.4  to a  km.  - F o r t h e c u r r e n t c o n s t r a i n t i n t e r p r e t a t i o n compared t o t h e 5 0% c l e a r c u t p a s s s y s t e m For  e a c h a d d i t i o n a l km  $26.70 x  ii)  2 x 24  1 = 3¥  $0«065/m  distance  km. the e x t r a c o s t i s  3  Results C a l c u l a t i o n of present to t h a t used Present (at  iii)  i n haul  0*8  value  values  followed  for directional c o s t s o f one  falling  e x t r a km  a format costs  i n haul  similar  (Table  15).  distance  10%): 15 y e a r l e a v e p e r i o d  $12,344  25 y e a r l e a v e p e r i o d  $10,968  Sensitivity Hauling  analysis  costs  The  1'0-1'3  ($26-$35/hour)  a p p r a i s a l manual f i g u r e i s $26.70/hour w i t h o u t  allowance f o r p r o f i t  and  risk.  A s t u d y o f c o n t r a c t o r s ' f i g u r e s i n d i c a t e s 1976 c o s t s o f $35»21/hour the  Kamloops a r e a  (including p r o f i t  (Young,  1977).  and  average  risk)  in  92  Hauling  speed  Average  load  0*7-1*7  (16-40  0*9-1*0  km/p.h.)  (30-34 m ) 3  f o r an on-highway  truck  (Kamloops a p p r a i s a l m a n u a l ) . The  present  value  results are directly  r e l a t e d t o these  three  factors. Interest  rate  i s important as o n l y  hauling  are discounted.  roading  c o s t s where t h e o p p o r t u n i t y  were a l s o e)  This  the additional costs of  differs  from t h e s e c t i o n on  costs  of logging  elsewhere  considered.  Directional Falling  Table 1 4 Area o f Machine B u f f e r S t r i p A d j a c e n t t o t h e Seymour R i v e r Length o f F o r e s t R i v e r Boundary (m)  Zones  Area o f Buffer Strip (ha)  1  1,600  2  4,400  .17*6  3  13,600  54*4  Total  19,600  Volume p e r ha i s 4 9 0 m  3  A p p r a i s a l Manual f e l l i n g Additional  costs  Froehlich,  Any  plus  6*4  -  78*4  (average f o r r e s e r v e - b u f f e r cost  $1*48/m . 3  30% or $0*44/m  3  (Dykstra and  1976)  l o s s o f volume i n t h e m a c h i n e b u f f e r  strips  adjacent-  t o t h e Seymour R i v e r  a n d t h e swamp meadows i s e x p e c t e d  small  i n this  the  and i s i g n o r e d  area).  exercise.  constraint requiring falling  Of g r e a t e r  of trees within  t o be  interest i s  the 40 m buffer  strip  away f r o m  t h e a r e a and applied direct  the r i v e r .  procedure  hence volume o f t i m b e r  to cover  the r i v e r .  techniques  a r e used  first  o f zone  here  involved.  t h e w e d g i n g , j a c k i n g and  them away f r o m  discounting  The  Finally  i s to  A c o s t i s then  winching the  estimate  of trees to  standard  to o b t a i n a present value  of  the c o s t . If logged  the  i n year  passes)  =  Table  pass  1 i n the c o n s t r a i n t  1 t h e c o s t i s 6»4  ha  x 490  m  x  3  area i s  $0*44 -r 2  (2  $700.  15 Present Values of D i r e c t i o n a l F a l l i n g C o s t s ( a t 10%)  Year  15 y e a r l e a v e p e r i o d Current cost Present value  25 y e a r l e a v e p e r i o d Current cost Present value  1  $700  6  1 ,925  1,195  1,925  1 ,195  1 1  5,950  2,294  5,950  2,294  16  $700  700  $700  $700  168  17 21  1 ,925  286  26  5,950  549  700  65  31  1 ,925  110  36  5,950  212  ,  Total This other  f)  cost  item i s  factors  $  5  /  1  9  $3/876  2  r e l a t i v e l y small  compared t o  the  discussed.  Marking If  t h e F i s h and  Wildlife  Branch agreed  to  selection  i n the M  cutting of the  stands  ±  reserve  w o u l d be  115  ha  ha.  with  The  leave p e r i o d of g) A d v e r s e The buffer  area  value  at  50%  of the  i n v o l v e d c o u l d be 10%  discount  marking operations. stems i s  as much  rate for a  as  15  year  $2,271.  Skidding  F e d e r a l F i s h e r i e s c o n s t r a i n t o f no  zone i m p l i e s a d v e r s e  t o p o g r a p h i c a l map, southern  that  to h a r v e s t i n g  f o r marking about  total  a present  i t i s expected  required prior  A p p r a i s a l manual c o s t s $43'24 p e r  areas  slopes  h a l f of the  s k i d d i n g of the exceed  30%  b u f f e r zone and  on  landings area.  in  From  the the  s c a t t e r e d areas  more g e n e r a l l y i n  in  the  the  north. In t h e s e  steeper  for  skidding.  The  and  sedimentation  level  from the  of a cable  in  the M  2  Mini-Alp fir  and  skid  trails  and may  site  required  disturbance  exceed t h a t  system appears i m p r a c t i c a l w i t h  of  experience  the  low  currently available in 50%  r e s i d u a l Crown  the cover  seriously affects potential productivity.  cable yarder  has  been u s e d  Seymour R i v e r  the  r e q u i r e a b i g g e r machine. potential  i n such o p e r a t i o n s  the v a l u e  of cedar  i n the  Island  l a r g e c e d a r and The  locally (Cottell,  area  C a b l e Systems i s u n l i k e l y .  The  s u c c e s s f u l l y f o r douglas  h e m l o c k t h i n n i n g s on V a n c o u v e r  A l o n g the  by  higher  S e l e c t i o n requirements of areas  t r a c k i n g w o u l d be  landings.  of c a b l e - l o g g i n g  district.  contour  c o s t w o u l d be  t e m p o r a r y r o a d s and Use  areas  (Oswald,  hemlock  produced 19 7 8 ) .  1974).  logs  Sidewinder However  has  unless  is sufficiently  high, s e l e c t i o n  More p r o d u c t i v e  clearcut  o p e r a t i o n s w i l l ' have f i r s t and  capital  invested i n cable  In c o n c l u s i o n , t h i s logging without impractical. constraint  o p t i o n on i n c r e a s i n g l o c a l systems.  qualitative  landings  a  of winter  operations  foregone  timber  10% d i s c o u n t r a t e .  buffer area  i s currently  and prompt r e v e g e t a t i o n o f  help. Values  values  f o r e a c h management  defined  listed  below'by major  alternative,  are present  They a r e r e l a t i v e  and i n w h i c h t h e f o r e s t  are harvested  a t 5 year  intervals  cost  values at  t o a "normal"  as a p r o g r e s s i v e c l e a r c u t , u n c o n s t r a i n e d strips  that  A l s o d i s t u r b a n c e w o u l d be m i n i m i s e d by t h e  h) Summary o f F o r e g o n e T i m b e r  items,  a n a l y s i s suggests  i n the c o n s t r a i n t area  l a n d i n g s and t r a i l s would  The  experience  operation  by r e s e r v e s o r  zones i n t h e c o n s t r a i n t beginning  i n year  1.  Management A l t e r n a t i v e a - R e s e r v e Effects  on a l l o w a b l e  cut  -$  45,280  Roading  -$269,350  Total  -$314,630  Management A l t e r n a t i v e b - S e l e c t i o n L o g g i n g - 1 0 % R e s i d u a l 2 5 year leave period  15 y e a r leave period  Roading  -$154,531  -$137,161  Hauling  -$30,884  -$34,755  -$3,876  -$5,192  -$189,291  -$177,108  Directional Falling Total  Volume  96 Management A l t e r n a t i v e c - The C u r r e n t  Constraint  Position  Harvest f i r s t pass in f i r s t 2 years Leave p e r i o d (yrs)  25  15  25  15  E f f e c t s on allowable cut  -$15,860  -$15,860  -$15,860  -$15,860  Selection benefits  + 78,674  + 89,267  +  96,297  +109,266  Roading  -189,469  -179,041  -175,898  -159,930  Hauling  -  35,296  -  39,720  -  34,280  -  38,492  Directional falling  -  3,876  -  5,192  -  9,957  -  8,775  Total  $165,827  -$150,54 6  Management A l t e r n a t i v e d - S m a l l Leave p e r i o d  25  Roading  -$1'58,823  -$139 ,713  3,876  - 29 ,792 - 5 ,192  -$18 9,171  -$174 ,697  falling  Additional (not  26,472 -  costs f o r block  estimated)  value  Clearcut Blocks 15 y e a r s  -  Total  l a y o u t and l a n d i n g s  would i n c r e a s e t h e s e  present  c o s t s t o something g r e a t e r than  management  -$113,791  years  Hauling Directional  -$139,698  alternative  those i n  b.  Discussion The variables  dominant c o s t impact i n c l u d e those  costs of roads  i s that of roading.  of timing, relative  and i n t e n s i t y  of roading.  roading costs,  The  estimated  opportunity c o s t s , o f roading allow f o r the e f f e c t prescriptions  roading  insensitive  of harvesting  i n t h e c o n s t r a i n t a r e a on t h e t i m i n g o f r o a d i n g  elsewhere as w e l l as w i t h i n t h e study value  Sensitive  costs  area.  (between management  to i n t e r e s t  rates  (5%-12%) .  Comparable  present  prescriptions) are The i m p o r t a n t  general  assumption of higher present  roading  values with  longer  c o s t s elsewhere r e s u l t s  leave periods  and  with  i n higher  higher  interest rates. This  i s i n c o n t r a s t to the o t h e r  which are very shorter  sensitive  has  lower  h a u l i n g and  have been a n a l y s e d  standard  c o s t s i n the  The  overall  idea of  as  results  are higher  rates.  directional  For  depend on  i n harvested  selection  for quality.  t h e most a t t r a c t i v e  falling,  no  attempt  t i o n was  extended beyond t h e M  effects  important The tion  decrease  o f t h i s on  to the Fish  and  the timber  of the  two  2  along  from  areas  timber  to the U  A s s u m p t i o n s on  i n decay  prescrip-  reserve  ±  c  advantage  i n harvested  areas stand  timber  sawmilling costs  constraint specifying  road  Seymour R i v e r w i t h i n t h e  the r i v e r  roading  h a r v e s t i n g the years  The  i f the q u a l i t y  i s interesting.  wise a d d i t i o n a l e a r l y  first  significant  resulting  terms.  h a r v e s t i n g and  Wildlife  years of operations  suggests  from a  in  and  are  results.  t o t h e north end  harvest  timber,  area north of K i t s o n Creek. potential  to  the assumptions i m p l i c i t  i n present value  increased substantially  structure,  Rather  T h i s makes management a l t e r n a t i v e  w o u l d be  to the  with  these  c o s t s or b e n e f i t s a d d i t i o n a l  selection benefits available  i n decay,  the  and  costs  c o n s t r a i n t area.  reduction  and  interest  values  b e e n made t o v i e w them i n o p p o r t u n i t y c o s t t e r m s .  they  the  to interest rate,  l e a v e p e r i o d s and  costs of s e l e c t i o n ,  present  first  of operations.  Logically as  the road  investment  construcfirst  i t w o u l d pay is built;  i s required.  present  value  to  other-  This  pass of the c o n s t r a i n t area The  two  results  in for  the  98 option  c show b e n e f i t s o f $26,000  $37,000  f o r a 15 y e a r  f o r a 25 y e a r  l e a v e p e r i o d from  a d v a n t a g e s and d e c r e a s e d  p e r i o d and  increased  selection  road opportunity c o s t s f o r t h i s  prescription. The p r e s e n t  values  of allowable cut effects  stumpage) a r e r e l a t i v e l y selection. out  in  The p r i n c i p l e  annually  costs  f o r 96 y e a r s  a l l occur  the f i r s t  greater  11 y e a r s .  the costs  i n t h e Seymour  The  Hence t h e i m p a c t  than  8. O t h e r R e s o u r c e a) Moose  proportion  i n the short  term  c o s t i n g methods, to decreases  in  costs.  Values  values  The c o n s t r a i n t s s p e c i f i e d reserve areas i ) My  than  (cost) i s a t t r i b u t e d  t o r o a d i n g and o t h e r  other  of discount rate i s  By u s i n g t h e d i f f e r e n t  l e s s weight  supply  P.S.Y.U.  a substantial  i n the allowable c u t procedure  relatively  o f r o a d i n g and  o f a l l o w a b l e c u t spreads  w i t h i n 36 y e a r s , w i t h  planning outlook.  timber  s m a l l compared t o t h o s e  (foregone  and t h e M  reserve areas;  2  t o p r o t e c t moose a r e t h e  selection  I f they  ±  areas.  are maintained  present value o f the foregone  M  as r e s e r v e s , the  stumpage r e t u r n s i s e s t i m a t e d a t  $8,310. As c o n s t r a i n t s t o p r o t e c t salmon v a l u e s system, the p r e s e n t v a l u e  roading  c o m p a r i n g a 50% p a s s h a r v e s t approximation  i s obtained  cost i s estimated  by  system and t h e r e s e r v e s .  from r e l a t i v e  a r e a and t h e F e d e r a l F i s h e r i e s alternative  r e q u i r e a 2 pass  s i z e s of the M  reserve area  a) and u s i n g t h e r o a d i n g  An 1  reserve  (management  cost f o r the  latter.  The ii)  M  2  present value  selection  of roading c o s t i s estimated  areas.  The  summary o f  shows t h a t t h e a d v a n t a g e s o f q u a l i t y disadvantages therefore w o u l d be ill)  of additional  ignored.  Moose v a l u a t i o n .  available. from the  the  a i r by  values  outweigh  the  residual  stands  hunter  fifteen  F i s h and  of the  effort  animals  Wildlife  Seymour moose  are  not  have been s i g h t e d  officers.  I t i s assumed  t h e moose p o p u l a t i o n i s s t a b l e a t t w e n t y a n i m a l s .  implied  present value  interest  rate of  $154  moose.  per  10%  These r e s u l t s constraints here  timber  This constraint i s  quality  estimates  corresponding  local  low  $22,560.  generations.  Accurate  Between t e n and  selection  roading costs.  problem of  deferred to future  p o p u l a t i o n and  that  The  foregone  at  has  this  depend v e r y much on  to salmon.  Only  are of  c o n s t r a i n t s and to those  At  an  value  of  interpretation  assumptions of p o p u l a t i o n s i z e .  which are a d d i t i o n a l  accredited  $1,543.  i s e q u i v a l e n t t o an a n n u a l  b e e n t o assume t h a t moose v a l u e s  importance timber  and  f o r a moose i s 30,870 o r ~2"0"  An  their  The  of approach  secondary costs  to  f o r salmon p r o t e c t i o n a r e  t o moose v a l u e s .  b)  Salmon  values  1)  Impacts o f T o g g i n g a c t i v i t y d u r i n g the i n c u b a t i o n p e r i o d o f salmon ( w i t h S p e c i a l r e f e r e n c e t o t h e Seymour R i v e r spawning groundl ~ ~ Three main r e f e r e n c e s a r e used  Rajagopal  and  approximately  Schreuder 150  in this  section.  (1976) s u m m a r i s e d i n f o r m a t i o n  s t u d i e s i n Western U n i t e d  Crow, from  S t a t e s and  Canada.  100  McMynn (1970) r e f e r r e d p a r t i c u l a r l y strips  adjacent  to the p r o t e c t i v e functions  of  leave  t o s t r e a m s and S l a n e y  (1975)  on  one o f t h e few r e l e v a n t s t u d i e s i n t h e I n t e r i o r  reported  of British  Columbia. Site mining  specific  t h e i m p a c t o f l o g g i n g on l o c a l  Unfortunately Seymour To  very  little  begin  with  some f a c t s :  folio  i s a v a i l a b l e on t h e  I n t h e Seymour R i v e r ,  area.  The eggs i n c u b a t e  "There a r e t h r e e  remain f o r a  times during  downstream  year.  the incubation period  s e n s i t i v e to high  temperatures a t t h i s s y s t e m and j u s t  t h e o x y g e n demands o f t h e embryo a r e h i g h e s t s e n s i t i v e t o reduced oxygen l e v e l s . "  are soft They a r e  time.  prior  ture,  The e n v i r o n m e n t a l  oxygen l e v e l s  and t h e embryos  (Crow, e t a_l. , 1976)  f a c t o r s o f sediment,  and s t r e a m f l o w ,  important  Each o f these  factors i s considered  ability  tempera-  f o r successful  s a l m o n i n c u b a t i o n , may be s t r o n g l y i n f l u e n c e d by l o g g i n g activity.  During  to hatching  H i g h t e m p e r a t u r e may a l s o i n f l u e n c e t h e s p a w n i n g f i s h ' s to l a y eggs.  when  environmental  A f t e r t h e f e m a l e l a y s h e r eggs t h e s h e l l s  development o f t h e c i r c u l a t o r y  are  week i n  t h e eggs a r e s u s c e p t i b l e t o any g r a v e l movement.  also very  usually  i n t h e stream bed d u r i n g t h e  embryo a r e e x t r e m e l y s u s c e p t i b l e t o p o o r  conditions.  t h e main  Peak s p a w n i n g a c t i v i t y  and by t h e e n d o f May t h e f r y have m i g r a t e d  t o Shuswap L a k e , where t h e y  and  populations.  i n t h e l a s t week o f A u g u s t and t h e f i r s t  September.  the  fish  to deter-  t h e s o c k e y e s a l m o n s p a w n i n g g r o u n d 20 t o 25 km  below t h e r e s o u r c e  winter  information  important  River.  concern i s with  occurs  conditions are very  i n turn.  101 1) E f f e c t s o f l o g g i n g  on  sediment.  between t h e g r a v e l p a r t i c l e s oxygen a v a i l a b l e  and  on  Sediment  the streambed,  the c a p a b i l i t y  variations is  depends l a r g e l y  i n r u n o f f and  o f t e n quoted  that  i s due  underlines  the importance o f l o c a t i n g  erodible important  soils  to plan  l a n d i n g and  skid  by  1976).  This  layout  Also  t o keep machines  s i g n i f i c a n t a n d augment downstream s e d i m e n t  more i m p o r t a n t r e a c h e s Some r e s e a r c h  (Slaney,  a favourable f i s h  providing  adequate  taken  strips  and  loads i n  in a relatively  i s g i v e n t o streams  c o n s t r u c t i o n of roads  can be  effective  can r e short  and  (McMynn,  s t r e a m bank s l u m p i n g b u t i n e f f e c t i v e  reducing  sediment  transport  f r o m c u t and  stream temperatures.  d e c r e a s e them i n w i n t e r and (Crow, e t a l . , Increased  fill  d r a i n a g e s i n t e r s e c t e d by r o a d s  s t r e a m edge t e n d s t o i n c r e a s e  slopes  in  into  the  ( S l a n e y , 19 7 5 ) . Logging to the  stream temperatures  increase  1970).  i n reducing overland  f l o w and  2) E f f e c t s o f l o g g i n g o n  time,  care i s  sediment  small t r i b u t a r y  banks  1975).  habitat  protection  i n the l o c a t i o n Riparian  from  shows t h a t most l o g g e d w a t e r s h e d s  establish  readily  i t is  away f r o m t h e s t r e a m edge as t h e t r a n s p o r t o f s o i l s c a n be  logging  r o a d s away f r o m  ( S l a n e y , 1975).  the  Further i t  produced  t o r o a d i n g (Crow, e t a l . ,  i f possible  The  streamflow,  the slope of the b a s i n .  80% o f t h e s e d i m e n t  spaces  o f waste  (McMynn, 1970).  on a n n u a l  operations  the  r e d u c i n g the  f o r the removal  p r o d u c t s t o t h e d e v e l o p i n g f i s h embryos amount o f s e d i m e n t  can p l u g  the d i u r n a l  i n summer, variation  1976). stream temperatures  result  i n i n c r e a s e d meta-  102  bolic  rate  and m a i n t e n a n c e  a g g r e s s i o n and  increased  requirements, increased  activity  Lower w i n t e r t e m p e r a t u r e s incubation period,  area,  s m a l l e r the stream  organisms.  c o n s i d e r a b l y extend  (McMynn, f l o w and  the g r e a t e r i s the impact  temperatures  and  the  e x p o s i n g t h e eggs f o r a l o n g e r t i m e t o  r i g o u r s o f the environment The  of pathogenic  stress  (Crow, e t a l . ,  water  streams  River  is relatively  1 9 7 0 ) .  the larger the  surface  o f v e g e t a t i o n removal Protection  1 9 7 6 ) .  the  i s , t h e r e f o r e , most i m p o r t a n t .  on  stream  of s m a l l headThe m a i n  l a r g e w i t h a h i g h f l o w f o r much o f  Seymour the  'year. Alternative usually  c u t and  adversely affect  e n t e r i n g a shaded Spawning t i m e  reserve strips  stream temperatures  area cools  rapidly  To d a t e t e m p e r a t u r e  e f f e c t i v e way  strip  -3)  on  Effects  rarely  sufficient  of moderating  Temperature depending  has  not  as a stream r e -  (McMynn,  i n t h e Seymour R i v e r i s two  months b e y o n d t h e mid-summer h e a t a n d  A riparian  a l o n g a s t r e a m do.  1 9 7 0 ) .  and  a  half  t h e most d i r e c t  sunlight.  been c o n s i d e r e d c r i t i c a l . t o shade t h e s t r e a m  i s t h e most  temperatures.  e f f e c t s o f l o g g i n g c o u l d be o f s h o r t  the speed o f regrowth  duration  of r i p a r i a n vegetation.  o f l o g g i n g oh o x y g e n l e v e l s .  Oxygen l e v e l s  available  t o t h e embryos i n t h e s p a w n i n g g r a v e l a r e m a i n l y a f f e c t e d s e d i m e n t a t i o n and t e m p e r a t u r e ,  both o f which  by  have b e e n d i s c u s s e d  above. Fine  sediment  traps organic matter  decomposes c r e a t i n g  i n t h e g r a v e l bed,  an o x y g e n demand and  r e d u c i n g the  which  concen-  103 tration  o f d i s s o l v e d oxygen i n the g r a v e l  Increased in  temperature  water.  Buffer strips  reduction  in dissolved  4) E f f e c t s increases  reduces  the s a t u r a t i o n l e v e l s  c a n be  oxygen  o f l o g g i n g on  (Crow, e t a l . , 1976).  effective  i n preventing a  (Crow, e t aJL. , 1976).  streamflow.  In g e n e r a l water  evaporation  (McMynn,  For  and  higher  free and  o f g r o w t h f o r two  28%  ( L i k e n s and these  g r e a t e r i n the  y e a r s , the annual first  Borman, 1970).  effects  watershed  decrease  are  timber.  flood  years  f o r e s t had  flow  quickly  and  i f less  than  was  respectively,  not been  With r e y e g e t a t i o n o f the  tends  20%  felled  cutover, of  the  to detect  t o i n c r e a s e t h e r a t e o f snowmelt  increase flooding while p a r t i a l  l e v e l while  al.,  i f the  second  and  1976).  Clearcutting therefore  and  stream  i s cut, i n c r e a s e s i n flow are d i f f i c u l t  (Crow, e t a l . ,  increasing  cutting  t h e d u r a t i o n o f peak  and  reduces flows  the (Crow,  1976) I n c r e a s e d peak f l o w s  s e v e r a l ways. in  peak f l o w s  than b e f o r e removal o f the  than would have been e x p e c t e d  et  transpira-  example i n t h e Hubbard Brook w a t e r s h e d , c l e a r f e l l e d  kept 39%  sooner  a  1970).  Minimum f l o w s a r e g e n e r a l l y i n c r e a s e d and often  yield  i n logged watersheds because o f e l i m i n a t i o n o f  l a r g e p r o p o r t i o n o f the v e g e t a t i o n r e s p o n s i b l e f o r t i o n and  o f oxygen  They cause abnormal g r a v e l s h i f t i n g  scouring of incubating f i s h  bank c u t t i n g  are d e t r i m e n t a l to f i s h  causing increased  Stream flows  embryos and  life  resulting  they a c c e l e r a t e  sedimentation.  i n the r e s o u r c e  folio  area are  in  going to  be  1 04 little strip the  a f f e c t e d by  c u t t i n g p r a c t i c e s i n the r e s e r v e - b u f f e r  because i t r e p r e s e n t s  total  f o r e s t a r e a and  (especially  i n the  a relatively  small proportion of  i t i s l o c a t e d on  south) a d j a c e n t  i s the c u t t i n g  s t r a t e g y adopted  80%  forest  the  area  on  steep  easier slopes  to the r i v e r .  importance o f the  the  Of  f o r the  greater  remaining  s l o p e s f u r t h e r from  the  stream. 5)  Examination  literature  o f environmental  i t a p p e a r s t h a t a 200  of the r i v e r  i s an  environment. protection  I t may  indicated. supported the The tends  similar  from r o a d i n g .  i n f l u e n c e stream  n e e d n o t be  i s excluded  i n slumping  f o r i n c l u d e the  o f stream  i s not  from the  is zone i s strip.  1975).  stability  of the  o f blowdown i n l o c a l  leave  w i n d s and  be  considered  as i t additional  t h e r e s u l t s may  (Slaney,  meters, exposure to storm  compared  banks s u p p l y i n g  Environmentally,  to c l e a r c u t t i n g  of  continuous.  of windthrow should  t o the r i v e r .  flow  a  flow.  t r e e s i n the  l o n g as m a c h i n e r y  than  the wider s t r i p  Harvesting of merchantable  possibility  prevalence  Finally  t o 40 m w i d t h  strip  river,  to f u r t h e r reduce overland small  side  stream  food  a n a r r o w b u f f e r zone o f 20  to r e s u l t  debris  looked  as  either  no more shade f o r t h e  However t h i s w o u l d be  to s i g n i f i c a n t l y  Instead  Also  help  areas.  to sedimentation  the  m wide r e s e r v e on  f r o m streambank e r o s i o n , o r a d d i t i o n a l  i n steep  expected  From  i n e f f i c i e n t means o f p r o t e c t i n g t h e  I t would p r o v i d e  narrow s t r i p . debris  constraints.  Some p o i n t s t o river  strips  soil  be  banks, and  the  block  conditions  be  peri-  (Moore,  1977).  105 For  example,  i f t h e wet  southern part windthrow. alleviate  of the  the  fish  access be  folio  flag  accumulation  i n the  depend more on  The  i s that of  soils  impact of  i n the are  the  r a t e of  planning  and  frozen.  Care the  river  i n the  logging  should  skid  and  trail  debris  on  buffer  stream flows  i n the  redd  will  control i s  (gravel nest The  as  i n which  location  o f paramount s i g n i f i c a n c e i n More a t t e n t i o n is  r i v e r warrants  documented.  b a s e d on  Federal Fisheries constraint of i s i n t e r p r e t e d as  a 50%  25%  s t r e a m s on  For  this  area to the  methods  exercise  pass system.  applying  the  emphasis.  i n t e n s i t y and  o f the  to  important.  roads c r o s s i n g s i d e  e f f e c t s of v a r i a t i o n i n logging  schedules are  appear  catchment h i n t e r l a n d .  supervision of roading  are poorly  zone  It i s also often cited  sedimentation.  away f r o m t h e  year period  of  sections  (Crow, e t a l . , 1 9 7 6 ) .  construction of  sedimentation  season  lower  to the  sedimentation.  c o n s t r u c t i o n of roads are  25  would  i s the  impact over which l e a s t  and  harvesting  trees  1975).  laid)  on  this  adjacent  salmon eggs a r e  The  be  wet  the  slopes  may  and  mortality  steep  there  c u t t i n g p r a c t i c e s i n the  environmental  Care i n the  rooted  river  t h e main s o u r c e o f  initial  shallow  to s e l e c t i o n l o g g i n g  to l a c k support.  influencing  the  ( i d e n t i f y ) stream channels or  (Slaney,  Restrictions  available  in  least windfirm  to prevent skidding  The  river  i s s u p p o r t e d , as  i s e a s i e r when t h e  layout  to the  p o t e n t i a l problem.  values  taken to  adjacent  are  Removal o f t h e  Winter logging least  soils  logged total  The i n each area.  106 The  southern  boundary o f t h e r e s o u r c e  above the n o r t h e r n better years This allows  reaches  i s 2 0 km  o f t h e spawning ground  a n d 2 5 km n o r t h  i n the poorer  a substantial opportunity  sediment e f f e c t  folio  i n the  spawninq  for dilution  years. of the  o f l o g g i n g , by d e p o s i t i o n o f s e d i m e n t  i n the  i n t e r v e n i n g meanderings o f t h e r i v e r . 11) P o p u l a t i o n  information'-  Sources o f data  include the I n t e r n a t i o n a l P a c i f i c  Salmon  C o m m i s s i o n a n d c o r r e s p o n d e n c e between t h e F e d e r a l F i s h e r i e s S e r v i c e and t h e B.C.F.S. The  l o w e r Seymour R i v e r  i s one o f t h e more  important  spawning grounds f o r sockeye salmon i n t h e F r a s e r system.  Substantial variation  commercial  i n recorded  c a t c h b a s e d on a f o u r v e a r  River;'  s p a w n e r s and t h e  c y c l e i s a p p a r e n t (see  Table 16).  Table  16 S t a t i s t i c s o n Seymour S o c k e y e (1962-1975)  Year 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975  Commercial c a t c h (numbers) 176,000 114,000 18,000 35,000 141,000 220,000 22 ,000  Population  Spawners (numbers) 58,100 71,700 2,700 7,000 28,750 13,360 3,960 7,300 12,000 19,000 2,900 2,900 45,000 37,000  107 For  analytical  poor year An  and  175,000 i n a good y e a r  estimated  available  purposes a commercial c a t c h of  average annual  to the n a t i v e I n d i a n  f r o m 3,000 t o 1,000 years.  For  this  only to the k i s u t c h ) and year. and  i s assumed.  c a t c h o f 2,0 00 food  fishery.  i s assumed t o o c c u r  o f up  50 0 c h i n o o k  to  1,000  logging ill)  An  these  fish  to r e c r e a -  chinook  i t i s suspected  that dolly  this No  Little  c o u l d change w i t h values  varden  improved  year. in  the  char occurs  access  at  from  are c a l c u l a t e d .  habitat analysis q u e s t i o n m i g h t be:  is i t valid  the v a l u e o f the  salmon p o p u l a t i o n s  spawning i n the  River  to o n l y a s m a l l p o r t i o n of the  their  habitat?  Salmon numbers a r e  land area  sensitive  r o u t e and  the  F u r t h e r the major t r i b u t o r y ,  s e a as w e l l as Ratchford  Mcnomee s t r e a m , d r a i n a combined a r e a folio  area  between s p a w n i n g  and  they  grounds.  join  to a c c r e d i t a l l  the  environmental i n Shuswap L a k e , spawning  C r e e k , and as  Seymour  that influences  to  ( i n c l u d i n g man's c a t c h i n g a c t i v i t y )  the m i g r a t o r y  resource  a  fishing  important  conditions  figures  (Salmo g a i r d n e r i ) have been o b s e r v e d  activity.  Partial  are h a l f  1,250  ( S a l v e l i n u s malma) a l s o a r e p r e s e n t . present although  poor  (Oncorhynchus  contributes five  T h i s amounts t o 2,500 coho and  u p p e r Seymour and  variation  (Oncorhynchus tshawytscha) salmon a  t h a t each spawning f i s h  Rainbow t r o u t  A  are a c c r e d i t e d  coho  I t i s assumed t h a t a v e r a g e r u n s  tion.  sockeye i s  b e t w e e n good and  exercise recreation values  small runs  25,000 i n a  l a r g e as  t h e main r i v e r  ground.  the  smaller  the  Seymour  a b o v e and  in  108 The  problem i s t h a t  to  different  on  them a l l t o c o m p l e t e  discussion  iv)  be  p a r t s o f h a b i t a t as their  suggests that  constraints should  i t is difficult  to proportion  u l t i m a t e l y the  life  cycle.  salmon  However,  i n future exercises,  Subjective  s a l m o n and  depend  this  environmental  i n t h e whole catchment above a spawning  e x a m i n e d when c o m p a r i n g  values  ground  timber  values.  probabilities  Another major problem f o r a n a l y s i s i s t h a t q u a n t i t a t i v e effects of d i f f e r e n t e n v i r o n m e n t and  i n t u r n on  i n c u b a t i o n , are not Personal reductions  h a r v e s t i n g p r e s c r i p t i o n s on the  success  r a t e i n spawning  harvestable  estimates  are  salmon p o p u l a t i o n ,  damage t o t h e  spawning h a b i t a t , f o r each o f t h e  prescriptions  (Sadler,  1970  and  r e s u l t i n g p r o b a b i l i t y matrix  Table  stream and  known.  subjective probability  i n the  the  Gillick  and  assigned caused  by  harvesting  Scott,  i s shown i n T a b l e  to  1975).  The  17.  17  for  Probability Matrix R e d u c t i o n i n 'Salmon C a t c h  Harvesting prescrxption  % reduction no 10 20 harm 1 Q  2  0  in catch 4  0  40  6  0  8  Expected value (% r e d u c t i o n i n catch)  0  - Reserve  50  25  15  10  9*5  - Selection cutting or small cut blocks (40m b u f f e r s t r i p )  40  30  20  10  11  - P r o g r e s s i v e c l e a r c u t 10 t o s t r e a m edge  20  25  25  10  10  31  109  The  percentage reduction  decrease  i n catch  i n catch  four years  after  i s defined  as  the  i n c u b a t i o n , compared t o  e x p e c t e d u n d e r c o n d i t i o n s o f no  damage f r o m l o g g i n g t o  spawning h a b i t a t .  of  not  i n c l u d e d , as  eliminated The  percentages  catch.  in  catch The  i n the  100% r e d u c t i o n  evidence  that  logging a c t i v i t y  15% and  10% c h a n c e o f  10%,  is  subjective  of percentage r e d u c t i o n  in  prescription, reduction  2 0 % and  40%  in  reduction  respectively. expected value  of catch reduction results  the  c a t e g o r i e s of percentage reduction  the  subjective The  the  i s a 5 0 % c h a n c e o f no  there  i n catch  alone.  17 a r e  body o f T a b l e  the  salmon have been  1 0 0% f o r e a c h h a r v e s t i n g  to  reserve  25%,  and  i s no  f o r each category  They sum  f o r the  catch  there  category  f r o m a s t r e a m by  probabilities  e.g.  The  that  harvesting  summing  i n c a t c h weighted  by  probabilities.  literature  populations  from  agrees that logging  d i m i n i s h over time a f t e r (McMynn,  1970  and  completion  Crow, e_t al_. ,  d e c r e a s e i n i m p a c t i s d e p e n d e n t on  site  Some s t u d i e s have assumed a c o n s t a n t w h i c h t h e n ends a b r u p t l y  i m p a c t s on  19 7 0 and  (Sadler,  of  timber The  1976).  specific  impact  fish  rate  of  conditions.  for several Gillick  and  years Scott,  1975).  Here i t i s assumed t h a t t h e three years calculated  after  for a constant  (Table  19)  In the  latter  is  logging.  and  detrimental  Present level  of  for a diminishing the  i m p a c t on  assumed t o d e c r e a s e by  values impact  level  of  effects of  a third  impact  each year  for  salmon c o s t s  f o r those  salmon p o p u l a t i o n s  last  three  to zero  years 18).  (Table  (reduced  are  catch)  three  years  110 after  logging.  V) Salmon  values  Commercial V a l u e s . $2*028/kg. 2*72 k g . industry  The 1976 l a n d e d  The a v e r a g e s i z e  approximately  o f sockeye caught i s approximately  The o v e r - c a p i t a l i s e d (Crutchfield  v a l u e was  s t r u c t u r e o f t h e salmon  and P o n t e c o r v o ,  19 69)  fishing  implies that f o r  s m a l l changes i n t h e c a t c h o n l y t h e v a r i a b l e c a t c h i n g c o s t s c a n be  considered.  The h i g h c a p i t a l  do  n o t change w i t h  c o s t s were 5 c e n t s trawling  s m a l l changes i n c a t c h . per f i s h  S e r v i c e , 1978).  6 cents/fish  o r 2*2 c e n t s / k g  landed  o f $2*0 06/kg.  i s used here  A figure of  resulting  The c o m m e r c i a l v a l u e  Seymour s o c k e y e r u n i s e s t i m a t e d  (slight  F o r 1976, v a r i a b l e  f o r n e t t i n g and 9 c e n t s / f i s h f o r  (Federal F i s h e r i e s  value  c o s t s o f v e s s e l s and e q u i p m e n t  i n a net  of the  as f o l l o w s :  Good y e a r  175,000 x 2*006 x 2*72  =  $955,500  Poor year  25,000 x 2*006 x 2*72  =  $136,500  rounding  e r r o r s a r e due t o c h a n g e f r o m i m p e r i a l measure  to m e t r i c ) . Native as  I n d i a n Food F i s h e r y v a l u e s .  c o s t of replacement  Columbia F i s h  from a commercial  and W i l d l i f e  $25  Branch,  source  are valued  (British  1977).  Good y e a r  3,000 x 2*006 x 2*72  =  $16,380  Poor y e a r  1,000 x 2*006 x 2*72  =  $ 5,460  Recreational values. estimate  These f i s h  fisherman  Federal Fisheries  day v a l u e s  i n Vancouver  a t $15 f o r s e a c a u g h t  f o r t h e f r e s h water s p o r t s f i s h ;  chinook  They have e q u a t e d t h e $15/day f i g u r e w i t h  s a l m o n and  and s t e e l h e a d .  $ 1 7 / f i s h caught.  No  111 such  transformation  water f i g u r e .  i s currently available  For  simplicity  f o r the  $17/fish i s used  fresh  here.  Recreational  3,750  f i s h values vi)  Four year Table  16  timber  clearly  the  good y e a r s  T h i s immediately  spawning y e a r s .  salmon a r e  examine t h i s  v a l u e s was  d i s p l a y e d by  between p a s s e s . first  then  the  the  I t was  12  salmon v a l u e s  fish  caught are  when t h e  and  four years  year  leave  first  a r e damaged  i n present values of timber used  (five years  in  15  year  leave periods)  e a c h zone and  o r 25  harvesting  schedule  separating  l o g g i n g i n e a c h zone and  timber  of  cycle  of  logging and  (majority of  costs  schedule  inadequacies.  zones  four  periods  year  four year  from t h e h a r v e s t  s m a l l and  three  of  four-year o l d ) .  Differences  are  salmon  h a r v e s t i n g schedule  i n the  later  smallest  present value of  24  harm  harm.  assumed t h a t t h e  poor spawning y e a r  that  Seymour  to c o i n c i d e with  l o g g i n g , i n each of the with  two  possible benefits i f  occur  f o r a timber  and  c y c l e of  Periods of greatest potential  potential,  calculated  the c o n s t r a i n t area  the  four year  s u s c e p t i b l e t o such  y e a r s between i n i t i a l  is  the  suggests  spawning ground would  number o f To  two  illustrates  h a r v e s t i n g o p e r a t i o n s were s c h e d u l e d  the poor to  $63,750/year  cycle  p o o r y e a r s and sockeye.  17 =  x  appropriate to the  well within potential For  12  resulting  separating logging and  the  salmon c y c l e or 2 4 year  e r r o r s due  to  leave  c  periods)  information  example t h e d i f f e r e n c e i n p r e s e n t  c o s t s f o r management a l t e r n a t i v e  (four years  (comparing  value a 24  and  112 a 25 y e a r the  leave  slightly  period)  i s less  than  $3,000.  different  timber  harvest  - Present  values  o f salmon c o s t s  In the d i s c u s s i o n  schedules  a r e t r e a t e d as  equivalent. vii)  Results  Results are presented  f o r the assumption o f d i m i n i s h i n g  damage t o s a l m o n p o p u l a t i o n s Table  18 and f o r no d e c r e a s e  Table  19.  Table  ( a t 10%)  f o r three years until  after  the three years  logging i n a r e up i n  18  P r e s e n t V a l u e s o f Salmon C o s t s f o r T i m b e r H a r v e s t i n g P r e s c r i p t i o n s ( D i m i n i s h i n g Harm t o Salmon f o r T h r e e Y e a r s a f t e r L o g g i n g r a t e i s 10% % reduction i n catch 9»5 11 31  Timber harvesting prescription 4 years  Discount  between  100  zones  A. 12 y r l e a v e p e r i o d  $112,823  $130,637  $368,158  $1,187,607  B. 24 y r l e a v e p e r i o d  94,245  109,126  307,537  992,055  143,895  166,615  469,552  1,514,683  87,414  101,216  285,246  920,148  5 years  between  zones  C. 2 5 y r l e a v e p e r i o d F i r s t pass o f a l l zones i n f i r s t 2 y r s D. 2 4 y r l e a v e p e r i o d  The  zones r e f e r  as d e f i n e d The  i n the harvesting  s e c t i o n s o f t h e Seymour R i v e r  schedules.  f i g u r e s o f percentage reduction i n catch are derived  from t h e expected The  t o the three  present  values  values  (% r e d u c t i o n i n c a t c h )  i n Table  17.  o f salmon c o s t s a r e t h e r e d u c t i o n s i n  113 salmon c a t c h v a l u e s discounted The  to the present  capital  management The  (from a s i t u a t i o n a t 10%.  l e t t e r s A to D a r e used  f o r reference to the  p r e s c r i p t i o n s i n the f o l l o w i n g d i s c u s s i o n .  same comments  Table  o f no l o g g i n g d i s t u r b a n c e ) ,  a l s o apply  to Table  19.  19  P r e s e n t V a l u e s o f Salmon C o s t s f o r T i m b e r H a r v e s t i n g P r e s c r i p t i o n s (No D e c r e a s e i n Harm t o Salmon f o r T h r e e Y e a r s a f t e r L o g g i n g ) Timber harvesting prescription 4 years  between  Discount  r a t e i s 10% % reduction i n catch 9»5 11 31  100  zones  A. 12 y r l e a v e p e r i o d  $226,710  $262,506  $739,790  $2,386,420  B. 24 y r l e a v e p e r i o d  191,827  222,116  625,963  2,019,236  238,383  276,023  777,882  2,509,298  144,871  167,746  472,737  1,524,957  5 years  between  zones  C. 25 y r l e a v e p e r i o d F i r s t pass o f a l l zones i n f i r s t 2 y r s D. 24 y r l e a v e p e r i o d  See the  Figure 3 f o r profiles  first  viii)  logging  pass.  Discussion of results  Commercial v a l u e s . increased tant  o f r e d u c t i o n i n salmon v a l u e s f o r  r a p i d l y over  The l a n d e d  value  recent years.  o f s o c k e y e s a l m o n has  Price  trends  because a l a r g e p a r t o f the p r e s e n t v a l u e  related  t o the commercial  Recreational value. substantial  a r e impor-  i s directly  value. T h i s measure i s a p o t e n t i a l  e r r o r i n the present value  calculation  source of  as t h e r e i s  114 FIGURE 2 I L L U S T R A T I O N OF THE I M P O R T A N C E OF A S S U M P T I O N S ON THE I M P A C T OF L O G G I N G A C T I V I T Y ON SALMON V A L U E S Reduction i n salmon values Good and p o o r y e a r s r e f e r t o  spawning  years  D u r a t i o n o f i m p a c t on salmon v a l u e s p r e s c r i p t i o n s A , B — T a b l e 19) 3  Good year  years  2  (management  years  4  years  Relative reduction in salmon • values  Poor year 2  4  6  8 Years  2 4 6 8 (logging occurs in year  2  4  6  8  1)  Impact on number o f s a l m o n c a u g h t r e d u c e d by one t h i r d o f t o t a l e a c h y e a r (management a l t e r n a t i v e s A , B — T a b l e 1 Compare w i t h 3 y e a r s above Good year  Relative reduction in salmon values  Years  (logging  activity  occurs  i n year  1)  FIGURE 3 PROFILES  OF R E D U C T I O N I N SALMON V A L U E S FOR F I R S T L O G G I N G P A S S  Reduction i n salmon v a l u e s A , B , C , D r e f e r t o management p r e s c r i p t i o n s i n Good and p o o r y e a r s r e f e r t o s p a w n i n g y e a r s  Table  19  A and B Zones logged 4 years apart  Zones logged 5 years apart Good year Relative reduction in salmon values Poor year  6 8 10 12 14 16 Years  Good* year  after  D Harvesting a l l three zones i n f i r s t two y e a r s  4 6 8 10 12 14  first  logging  activity  Progressive selection cutting operation in f i r s t three years ( o n l y one l o g g i n g pass)  Relative reduction in salmon values Poor year  8 10 Years  after  first  logging  activity  116 an a l m o s t of  fish  complete  caught  likely  values  18  by  y e a r s , 24  for C  and  leave period).  14%  t o A and  The  assumptions  straight  line  ground over  19 10%  t h r e e y e a r s , and  leave period,  i s added t o C,  This results  the l a c k of case  Changes t o t h e three years)  account  from  inadequate  s t u d i e s and  for site  specific  are p a r t i c u l a r l y  sensitive  important  as r e d u c t i o n t o two  weight  to those  spawning ground o v e r of  Tables  a l l lack knowledge o f  to these  18  and  19.  Again  i n no  i s apparent  salmon y e a r s o n l y i n the t h i r d  "good"  to four years  from  a  each  adds  ( F i g u r e 2). the comparison  B which a f f e c t  year a f t e r  be  B i n Tables  o f d e c r e a s i n g damage t o  i t i s A and  to  (assumed t o  t o A and  years r e s u l t s  three years  in  assumptions.  that are adversely a f f e c t e d  o f the assumption  spawning  differences.  salmon y e a r s b e i n g a f f e c t e d w h i l e i n c r e a s i n g  The  B-24  11%.to D,  the i n a b i l i t y  length of the recovery p e r i o d  o n l y good y e a r s  B  the s u b j e c t i v e p r o b a b i l i t y  r e d u c t i o n i n f i s h caught  Loss of f i s h values i s very  19  f o r A and  o f l o g g i n g on a salmon s p a w n i n g g r o u n d and  quantitatively  and  20%  r e l a t i o n s h i p o f d e c r e a s i n g damage t o t h e  empirical backing.  18  year  o f a l l zones i n  of the t h r e e year r e c o v e r y p e r i o d , the  estimates of percentage  particular  A-12  zones,  B.  those  the e f f e c t s  ( f i r s t pass  l e a v e p e r i o d ) , and  In T a b l e  present  ( f i v e y e a r s between  for D  ( b o t h f o u r y e a r s between z o n e s , year  It is quite  f i s h value i n c r e a s e s the  15%  year  species  values are higher than allowed f o r .  12%  leave period),  two  t h e number and  t h e Seymour s p a w n i n g g r o u n d .  the r e c r e a t i o n a l  i n Table  year  first  from  that recreational  Doubling  25  l a c k o f i n f o r m a t i o n on  good  operation  (when  117 damage i s l e a s t most s e n s i t i v e of  results  shown by one  per  i n Table to t h i s  Tables  assumption  18  and  19.  18 o r  Interest rate. interest  rate.  rates,  $24,000 i n T a b l e  The  5%  i n s t e a d of  reduction  10%  present values correspond  (for Table  114,000 t o 220,000 f i s h  measuring the population  and  factors.  o f one  independently  lower present  Table  100%  i t i s $1,742,985). 16  shows a i n commercial  w i t h i n poor y e a r s .  For  the commercial c a t c h v a r i e d i n the t h r e e poor y e a r s  the  from  from of  p a r t o f t h e e n v i r o n m e n t on  the  o f the environment o f the whole  fish  life  cycle. 9. D i s c u s s i o n o f E c o n o m i c E f f i c i e n c y - Salmon and T i m b e r V a l u e s Forest  of Resource  Allocation  Reserve  Review o f t h e  literature  i n d i c a t e s o n l y minor b e n e f i t s i n  reduced  w a t e r r u n o f f and  reduced  wide as  compared t o n a r r o w r i p a r i a n  of  with a discount rate  T h i s u n d e r l i n e s the major problem  impact  to  B the  i n s p a w n i n g p o p u l a t i o n and  represented  a  sensitive  18 t h e p r e s e n t v a l u e o f  c a t c h , e v e n w i t h i n good y e a r s and  18,000 t o 35,000.  doubled  i s $992,055; a t 5%  Impact o f o t h e r h a b i t a l  f o u r good y e a r s  i s also  19.  f o r management a l t e r n a t i v e  i n c a t c h a t 10%  substantial variation  estimates  sensitivity  present value costs are very  Higher  e.g.  The  are  catch represents a present value  v a l u e s o f salmon c o s t s a r e almost of  (Figure 2).  area, that  F o r management a l t e r n a t i v e A,  c e n t change i n f i s h  interest  i n the c o n s t r a i n t  to the s u b j e c t i v e p r o b a b i l i t y  $12,000 i n T a b l e  to  18),  overland flow of debris forest  reserves.  from  118 The d i f f e r e n c e i n t h e p r e s e n t v a l u e s between t h e r e s e r v e cutting  alternatives  This represents values  from  value  o f foregone  ( a l t e r n a t i v e a) and t h e  (c) i s between  $115,000  10 t o 17% o f t h e t o t a l  and  5 and 8% o f t h o s e i n expected  cent.  c y c l e i n Table  i n Table  19.  18  present according  (A,B,D) and  From T a b l e  v a l u e o f r e d u c t i o n i n s a l m o n c a t c h between t h e i s only is a  and s a l m o n v a l u e s . Cut Block  Management a l t e r n a t i v e s constraint position  c  Options ( i n t e r p r e t a t i o n of the c u r r e n t  from t h e r e s o u r c e  folio--see  s e c t i o n 5,  Management A l t e r n a t i v e s ) a r e t h e most a t t r a c t i v e . of foregone  $166,000  timber  (selection  range from  values).  s a l m o n c o s t s between t h e c a t e g o r i e s o f 11%  logging)  and 31%  d i f f e r e n c e between t h e s e  (progressive clearcut  The p e r c e n t a g e  In T a b l e  figures  to the  18 t h e s m a l l e s t  two c l a s s e s i s $184,000  for alterna-  (11% and 31%) a r e o b t a i n e d  from t h e s u b j e c t i v e p r o b a b i l i t i e s selection options are economically cutting.  timber  i s w e l l w i t h i n the d i f f e r e n c e o f  bank) r e d u c t i o n i n c a t c h .  D.  Present  $114,00 0 t o  Summary o f f o r e g o n e  f i g u r e o f $166,000  present value  tive  values  (see s e c t i o n 7.h,  The h i g h e r  stream  1.1/2  i n e f f i c i e n t management s t r a t e g y f o r t h e c o m b i n e d  S e l e c t i o n and S m a l l  values  between  17 t h e d i f f e r e n c e  Under t h e a s s u m p t i o n s u s e d t h e r e s e r v e  relatively timber  $200,000.  salmon  20 c h a i n w i d e r e s e r v e and t h e s e l e c t i o n o p t i o n s per  selection  exposed t o h a r v e s t i n g o p e r a t i o n s , scheduled  to t h e salmon f o u r y e a r  timber  assigned  i n Table  more e f f i c i e n t  I f t h e d i f f e r e n c e between t h e two was  17.  than  only  The clear-  10%  119 reduction  i n c a t c h i n s t e a d o f t h e 20% assumed, t h e r e s u l t s  w o u l d be v e r y quality  comparable  (see T a b l e  selection prescription  c o n s t r a i n t area w i l l  decrease  18).  Extension  ofthe  t o the remainder o f the the foregone  timber  values  even  more. C o n s i d e r i n g t h e s m a l l number o f a l t e r n a t i v e s may a p p e a r t o be t h e f i n a l a n a l y s i s can provide described  further fine tuning.  s u b s t a n t i a l savings  i s concentrated  Table  poor spawning years) leave period)  negligible  17).  ( F i g u r e 3). I n  v a l u e s between B  (four years  year  o f 11% r e d u c t i o n i n c a t c h  to selection  logging  The d i f f e r e n c e i n t i m b e r Four year  alterna-  values i s  cycle).  t h e l e n g t h o f t h e l e a v e p e r i o d f r o m 25 t o 15 o r  f r o m 2 4 t o 12 y e a r s  The  assigned  (see s e c t i o n 8.b.vi,  Decreasing  harvest-  ( f i v e y e a r s between zones—25  i s $57,000 a t a l e v e l  (see T a b l e  i f timber  leave p e r i o d — h a r v e s t i n g concentrated i n  and C  (subjective probability  reduction  S e v e r a l examples a r e  are l i k e l y  18 t h e d i f f e r e n c e i n p r e s e n t  tives  sensitivity  i n t h e poor spawning y e a r s  between z o n e s — 2 4 y e a r  in  However,  this  here.  Firstly, ing  answer.  studied  decreases  the timber  costs  through  i n t h e o p p o r t u n i t y c o s t s o f r o a d i n g and an i n c r e a s e  t h e s e l e c t i o n b e n e f i t s from a s h o r t e r d i s c o u n t i n g p e r i o d . salmon c o s t s i n c r e a s e s u b s t a n t i a l l y .  timber  values  i s more t h a n b a l a n c e d  values  (A-B o r $ 130 ,000-$109 ,000 , T a b l e  change i s n o t e f f i c i e n t values. resources  Rather than  A $15,000 s a v i n g s i n  by a $21,000 l o s s 18).  This  f o r t h e combined t i m b e r  i n salmon  suggested  and s a l m o n  p u r s u e an optimum l e a v e p e r i o d f o r  other questions  r e q u i r e answering.  both  120 Is  i t beneficial  constraint n o r t h end  of  the  ( F i s h and  timber  salmon v a l u e s  values  to  it  becomes l e s s  If  Table  f  18)  The  pass  timber is the  3*7%  first  18,  the  two  B and  D  years  From t h e  savings  at  the  additional  loss  (see T a b l e  in  of  timber  that i n  11 % r e d u c t i o n i n there-  i n . . salmon v a l u e s 18,  of  summary  a c c e l e r a t e d r o a d i n g p r o g r a m may  when r e c a l c u l a t e d f o r a  the margin i s  before  $34,000 -r $ 9 2 0 , 0 0 0 ) .  and  be  12 y e a r  f u r t h e r extended t o examine  costs of a progressive s e l e c t i o n I f t h e c o n s t r a i n t a r e a was  harvested  over  the  compared t o l o g g i n g t h e two  years' year  leave period  4*7%.  first  b e n e f i t s are estimated  first  construction to  constraint)?  Table  the  i s u s e d t h e m a r g i n i s 5*3%(26,000 + 55,000  system.  selection  road  pass of  l e a v e p e r i o d i s $26,000 and  The  a n a l y s i s may  benefits  and  attractive  1,525,000) and  (Table  year  i s $8,000.  19  Wildlife  (difference being  f o r e c a u s e up  first  Seymour R i v e r , d u r i n g t h e  v a l u e s w i t h a 25  catch)  the  area concurrently with  operations foregone  to harvest  compared  operations  to a  progressively  three years, present  at approximately  first  the  $200,000.  pass with road ( a l t e r n a t i v e D,  leave period before  the  value This  construction i n Table  f o l l o w e d by  a 25  second  R o a d i n g and  s e l e c t i o n b e n e f i t s c o n t r i b u t e to t h i s  18) pass.  potential  saving. Under t h e a s s u m p t i o n o f d i m i n i s h i n g harm t o populations over  the t h r e e years  v a l u e o f the  s a l m o n c o s t s , a t 11%  by  The  $35,000.  valent  to  13*5%  net  figure of  after  salmon  l o g g i n g , the  present  reduction i n catch,  $165,000 p r e s e n t  reduction i n catch.  value  Concentration  of  increases i s equi-  121 harvesting therefore  activity  i n a progressive  selection  operation,  f u r t h e r r e d u c e salmon p o p u l a t i o n v a l u e s ,  affected  by  logging a c t i v i t y  benefits  are  no  With the populations  longer  by  salmon p r e s e n t  the  $200,000 i s a g a i n  13»5%, b e f o r e  years  relative  r e d u c t i o n i n harm t o t h e  three years  values  to  i n the  available.  a s s u m p t i o n o f no over  up  may  (Table  i s s m a l l and  equivalent  to  19)  the net  13*5%  the  salmon  reduction in  figure of close  harm t o t h e  to  salmon  populations. Variation habitat  has  i n d u r a t i o n of adverse  not  been a l l o w e d  d i m e n s i o n t h a t may  readily  i m p a c t s on  f o r , although  be  the  i t is  salmon  another  i n c l u d e d i n a n a l y s i s such  as  this. TO.  Q u a l i t a t i v e Comments on The  visual  effect  Other Resource  Values  o f t h e v a r i o u s management a l t e r n a t i v e s on  i m p a c t component o f r e c r e a t i o n i s d i f f i c u l t  t o measure  because o f  inability  to aggregate personal marginal  Generally,  selection  l o g g i n g l e a v i n g 50%  preferred  to  of  t h e Crown c o v e r  is  of the  Seymour R i v e r may  have some i m p a c t  on  v a l u a t i o n o f r e c r e a t i o n a l developments near the the  h a b i t a t and  Seymour Arm largely tend sized  on  p r o d u c t i v i t y of  o f Shuswap L a k e . roading.  to increase  sedimentation  Increased  contamination  over  spread  r i v e r mouth  s o c k e y e f r y and  other  sediment content  Accelerated-dispersed  harvesting operation  continue  utilities.  clearcutting.  Water q u a l i t y  on  the  roading  and  fish  in  depends  programs  will  s h o r t p e r i o d s w h i l e ,a s m a l l  through time w i l l  a t lower l e v e l s  for longer  tend  to  duration.  122 No e v i d e n c e  i s c u r r e n t l y a v a i l a b l e to suggest that  effects will TT.  Social  be  these  significant.  Impacts  Employment and income e f f e c t s a r e o f i n t e r e s t h e r e . Reduction  i n allowable  tant o f the timber on  the timber  a rigorous  supply  analysis  operational here.  cost  c u t i s p o t e n t i a l l y t h e most  factors.  Without d e t a i l e d  planning  The l i n k s  and t h a t a t a r e g i o n a l  or  o f an e n t i r e s a w m i l l o p e r a t i o n .  in  this  a t the regional  operational estimated  level,  that  Seymour R i v e r  level  are important  level,  $18,000.  i n this  m wide r e s e r v e  would d i r e c t l y  The c u r r e n t  w o u l d be r e s p o n s i b l e The impact.  other  cost  o f con-  four  from t h e  analysis.  It i s  local  jobs  ( l o g g i n g and  income a t an a n n u a l wage ( a l t e r n a t i v e c)  one d i r e c t work p o s i t i o n .  f a c t o r s would have n e g l i g i b l e s o c i a l  A d d i t i o n a l roading  r e q u i r e m e n t s may c o n t r i b u t e t o  personnel  and s e l e c t i o n l o g g i n g  productivity,  shift  ( a l t e r n a t i v e a) a l o n g t h e  c o n s t r a i n t wording  f o r only  timber c o s t  employment o f e x t r a falling  to the c l o s i n g of a  b a s e d on i n f o r m a t i o n  such as o b t a i n e d  t h e 4 00  i n the  The r e g i o n a l p l a n n e r ' s j o b  s a w m i l l i n g ) o r $72,000 i n a n n u a l l o c a l  tivity  between  s i t u a t i o n i s t o compare b e n e f i t s and c o s t s  straints  value  industry,  The l o s s o f a v a i l a b l e volume due t o c o n s t r a i n t s  Seymour R e s o u r c e F o l i o may c o n t r i b u t e  of  information  and t h e s t r u c t u r e o f t h e l o c a l i s not possible.  impor-  f o r a short period.  Directional  imply  i n labour  some r e d u c t i o n  although i n t h e former there  may be  due t o l e s s b r e a k a g e , a n d i n t h e l a t t e r p e r u n i t o f firmwood  i s likely.  increased  improved  produc-  123 If  environmental  in allowable  c u t and  c o n s t r a i n t s do i f on  is likely  gone t i m b e r  t o be  values.  involve a  a relatively  c o n s t r a i n t a r e a ) , the d i r e c t values  not  social  greater  scale  (as i n  that of corresponding  of c o n s t r a i n t e f f e c t s  whole salmon h a b i t a t i n c l u d i n g spawning ground, l a k e , route,  estuary  The  and  cut d i r e c t  annual l o c a l  Native  $2«006/kg o r fish  total  of  (1976 $8  represents  fish  fish  and  the  a as  the  compared used.  value  processing cost of  $2»50  d e p e n d i n g on  indirect  accumulated  simplicity and  operations  of  induced  supply  sum  of  the  $54,000  by  suggest  management  remembered  likely  occur  does n o t  example a d i f f e r e n c e o f  t o be  i t has  a number o f  are  the  and  often  b e e n assumed  employment m u l t i p l i e r s  that  temporary  discretely,  changes over  illustration  rounded  income f r o m  the  However, i t must be are  gives a  i n a good y e a r i t  In the  salmon p o p u l a t i o n  (both  net  A v a i l a b l e evidence  t o c.  c in  o r $54,000 i n  salmon  to d i r e c t  catch while  catch.  t h a t changes i n timber  For  migratory  landed  average poor year  o f the  o f the  1.1/2% was  i m p a c t s on  both  sockeye  t h i s magnitude o f p r o t e c t i o n i s p r o v i d e d  alternative only  i s ,3 j o b s  s u b s i s t e n c e ) , the  attributable  I n an  t o 26% 4%  For  the  statement.  f i g u r e s from F e d e r a l F i s h e r i e s ) ,  per  corresponds  Indian  $5.46 p e r  salmon r e s o u r c e .  that  this  employment e f f e c t s  employee income.  c o m m e r c i a l and  per  well reverse  fore-  for  d i f f e r e n c e between management a l t e r n a t i v e s a and  allowable  of  s e a may  the  impact o f changes i n salmon  than  Aggregation  small  reduction  areas.  that  same f o r  industries. Also of  effects.  interest  Impacts on  i s the the  geographical  timber  distribution  of  i n d u s t r y are u s u a l l y f e l t  income in  124 the r e s o u r c e  locality.  caught i n the  lower  Information  By  c o n t r a s t most o f t h e  i s not a v a i l a b l e  which i s r e l a t i v e l y  geographic from the  distribution  for attributing  values.  In t h i s  of  recreational  Seymour R i v e r i s u n c e r t a i n .  t h e Thompson and  incremently  t o incomes i n a l l a r e a s .  The  the  main r e s o u r c e are  the  values  important  Seymour R i v e r t o t h e  environment i n the The  results  restrictions this  study  boundaries greater  The  size  and  emanates  Seymour s a l m o n  probably  migratory  a t sea,  i) occur  sockeye  adding  suggest  - the  folio  area  a d j a c e n t .to t h e  and  is a partial  a n a l y s i s and  of the  a r e a may  river.  It i s appreciated  take  precedence because  However, t h e s e  roading  p o i n t s do  and  1981.  A progressive quality  harvesting  significantly  s h o u l d be  to  resulting  the  of  occur.  scheduled The  to  next  two  '  selection operation for  reduces  that  indicate  as much a s p o s s i b l e i n p o o r s p a w n i n g y e a r s . i n 1980  and  t h a t c o n d i t i o n s beyond  i n which s o c i a l b e n e f i t s are estimated  are  t h e moose  following harvesting strategy  f o r the c o n s t r a i n t area.  study  logging  salmon spawning ground i n  south of the  T i m b e r h a r v e s t i n g and  poor y e a r s ii)  s u s c e p t i b l e t o damage f r o m  swampy a r e a s  significance.  directions  The  t h e moose  f i s h i n g which  F r a s e r R i v e r s and  effects  Conclusion  activity  b)  regard,  i n Shuswap L a k e , t h e  route along  a)  income  s m a l l , i s unimportant.  provide recreational values  12.  are  mainland.  t o changes i n r e c r e a t i o n a l herd,  salmon  interest  e c o n o m i e s i n l o g g i n g and  charges  milling  on  on a  timber roading. firmwood  125 b a s i s outweigh the c o s t o f reduced of  a r o u n d 50% o f t h e crown c o v e r  reduces  soil  maintains iii) This  timber  retains  supply. shelter  Retention f o r moose and  d i s t u r b a n c e and r u n o f f compared t o a c l e a r c u t , a n d  a barrier  against overland d e b r i s flow.  H a r v e s t i n g s h o u l d o c c u r w i t h r o a d i n g where p r a c t i c a l .  i s t o cover  road access keeping  the Fish  and W i l d l i f e  t o t h e n o r t h end o f t h e r i v e r  interest  charges  directional  of early  and i s aimed a t  on r o a d i n g t o a minimum.  i v ) A 40 m b u f f e r s t r i p meadows,  requirement  adjacent  falling  t o the r i v e r  away f r o m  the r i v e r  and swamp and t h e  r e t e n t i o n o f shade t r e e s c l o s e t o t h e w a t e r a r e recommended. Costs o f a b u f f e r s t r i p relatively maintained. vegetation tation v)  from  small.  and d i r e c t i o n a l  Temperature e f f e c t s  Possible terrestial for local  food  rainbow t r o u t  bank c o l l a p s e i s k e p t  falling  o f shade t r e e s a r e sources  remain.  from  Source  streamside o f sedimen-  t o a minimum.  C a r e f u l a t t e n t i o n . s h o u l d be p a i d t o r o a d  t h e u s e o f p r o t e c t i v e methods i n c o n s t r u c t i o n . is  appear  location  and t o  Sedimentation  t h e l e a s t c o n t r o l l a b l e o f t h e f a c t o r s d e t r i m e n t a l t o salmon  habitat vi)  that results Landings  timber  harvesting.  s h o u l d be a l l o w e d  w i t h temporary roads logging  i s finished.  vii)  The c o n s t r a i n t  appears  from  they  i n the c o n s t r a i n t area  s h o u l d be r i p p e d and g r a s s e d  of winter  and a s  when  l o g g i n g i s r e t a i n e d as t h e a r e a  s u i t a b l e and a d v a n t a g e s o f f r o z e n g r o u n d may be i m p o r -  t a n t o n t h e wet s o i l s  i n the southern  Salmon a r e l e a s t v u l n e r a b l e a t t h i s  half  time  o f the f o l i o  area.  i n t h e Seymour R i v e r .  126 c)  Summary o f i)  Timber c o s t s  d o m i n a t e d by elements  3  of  per  close  ha,  to are  If  costs  10%.  can  be  allowable  cost  roading  this  cost cost  harvesting.  local  Com-  from q u a l i t y s e l e c t i o n assumptions of  value  allowable  annual  rotation,  reducing  terms i n  assumption of  employment and  and  e f f e c t s on  concept of  i n present  reduced  timber.  through the  W i t h an  cost  s e n s i t i v e to i n t e r e s t  from h a r v e s t i n g ,  However, t h e  cost  volume  r e s u l t i n g i n lower h a r v e s t i n g  items.  commitment l o s s o f  of  They depend on  spreads the  to other  roading,  timing  particularly  substantial.  son  full  compari-  timber  income i s a p o t e n t i a l  cost. Salmon v a l u e s .  reserve  strip  t h a t of  a narrow  examined.  influences  s u g g e s t s t h a t a wide  minimal p r o t e c t i o n b e n e f i t s  portion of  i n other  the  salmon h a b i t a t  importance of  up  t o 20%  the  has  commercial  i n response to  stages of the  Sensitivity of  river  a d d i t i o n a l to  strip.  spawners o c c u r s  Recreational  increase  literature  S u b s t a n t i a l v a r i a t i o n i n the  number o f  unknown.  The  provides  Only a small  the  the  are  Sensitive  opportunity  c u n i t of merchantable  s i g n i f i c a n c e of  ii)  the  costs.  of  Estimated benefits  logs  the  social  roading  density  and  i s alienated  cut  or  cost,  important.  per  timber  not  assumptions.  environmental c o n s t r a i n t s  layout  roading  i n harvested  milling  cut  the  r e s u l t s are  harvesting decay  the  timber harvested,  parative rates  of  i n t e r e s t c h a r g e s on  include  harvested perm  i m p o r t a n t v a r i a b l e s and  salmon l i f e  been catch  and  environmental cycle.  Seymour s p a w n i n g g r o u n d  of r e s u l t s to t h i s  in  is  f a c t o r i s shown by  i n c a l c u l a t e d salmon p r e s e n t  values  the  with  127 a doubling  of r e c r e a t i o n a l values.  Greatest the  uncertainty  and  therefore potential error  r e l a t i o n s h i p s between d i f f e r e n t  salmon p o p u l a t i o n  size.  l o g g i n g p r e s c r i p t i o n s and  F i g u r e s were a s s i g n e d  the  percentage reduction  and  r a t e of decrease of adverse environmental  following The timber  discount values,  had  scheduled roading iii)  because of the  rate  or nothing  t o be  rate affects  cost).  relatively  Lower i n t e r e s t  from e a r l y p r o g r e s s i v e according  to the  more  large size  costs are  than  of  the  less sensitive costs—not  r a t e s emphasise the  an gains  s e l e c t i o n ;-operations,  p o o r s a l m o n spawning y e a r s  and  the  program. Moose v a l u e s .  The  c o n s t r a i n t of q u a l i t y s e l e c t i o n to the  Possible e f f e c t s of roading  be  duration  conditions  salmon v a l u e s  timber  industry.  a v a i l a b l e f o r s e l e c t i o n c u t t i n g of the M  River  to the  (roading c o s t s are o p p o r t u n i t y  l o g g i n g appears favourable is  total  because comparative r o a d i n g  interest  all  i n salmon c a t c h and  s u b j e c t i v e l y to  logging.  f o r m e r and to  concerns  i n the  first  considered.  two  years  t o the on  north  increased  ±  end  reserve of  the  Allowance areas. Seymour  sedimentation  should  128 CHAPTER  VIII  CONCLUSIONS AND Biological,  RECOMMENDATIONS  p h y s i c a l and t e c h n i c a l v a r i a b l e s d e t e r m i n e t h e  amounts o f t h e v a r i o u s f o r e s t  resource  f o r any g i v e n  u s e s and t h e  quality  available  provide  no i n d i c a t i o n o f s o c i a l p r e f e r e n c e s  f o r e s t management r e g i m e .  goods; a p r e r e q u i s i t e f o r t h e s e l e c t i o n maximum s o c i a l w e l f a r e .  values  concept As  little  u s i n g monetary preference,  chapters,  level.  (overview)  level  t o date resource  of their The  effects  G u i d e l i n e s and l e g i s l a t i o n  on o t h e r  objective of this  introducing  t h e need  planning,  are s t i l l  being  economic  impact  resources.  t h e s i s was.to d e r i v e a procedure f o r  economic a n a l y s i s i n t o  the o p e r a t i o n a l l e v e l .  t h e r e has  or a t the l o c a l  introduced with minimal c o n s i d e r a t i o n o f t h e i r and  ownership  p h y s i c a l measurements t o t h e  economic i n p u t i n f o r e s t  at the regional  operational  yield  welfare.  was shown i n t h e e a r l i e r  been v e r y either  forest  Economic a n a l y s i s ,  a means f o r c o n n e c t i n g of social  that  This general objective i s often  a s t h e common d e n o m i n a t o r o f consumer  presents  They  for alternative  of plans  assumed t o a p p l y b e c a u s e o f t h e d o m i n a n t p o s i t i o n o f t h e Crown.  environmental  forest  An i m p o r t a n t  f o r a method c a p a b l e  resourse  corollary  planning at  to this  aim, i s  of obtaining useful results  within  t h e c o n s t r a i n t s o f c u r r e n t k n o w l e d g e , b u d g e t s and manpower availability  and t h e a p p l i c a b i l i t y  Examination  o f economic  o f t h e economic t h e o r y  when a p p l i e d t o f o r e s t  resources,  theory.  o f resource  allocation,  r e v e a l s major d e f i c i e n c i e s o f  129 market  imperfection  and i n a d e q u a t e  However, t h e a v a i l a b i l i t y information  f o r timber  t e r m s and i n v o l v e d  provides  a good  starting  techniques  and  the dominant  i n most f o r e s t  point  s m a l l number o f o t h e r  pricing  of resources  operations;  economic  the  knowledge.  resource  resource  for analysis.  marketed  harvesting  use  use i n conflicts,  If information  f o r e s t u s e s and  on  shadow-  a r e added t o t h i s b a s e , a p r a c t i c a l  procedure  is available. A l t h o u g h o f t e n unheeded,  the s o c i a l  m e n t a l c o n s t r a i n t s c a n be s i g n i f i c a n t , level  and i n a g g r e g a t e d  suitable fully  criteria  particularly  ( e . g . f o r income  distribution  simple  f o r use o f f o r e s t  criteria use.  In t h i s operational various  important study, level;  resource  experience results.  have b e e n d i s c u s s e d  Q u e s t i o n s o f who  increasingly  pays  economic  agencies  indicies  o r who  set of Several  estimated  i s important  levels  At  as t h e i n p u t o f  depend  specific  on  field  good  information  variation  makes  Knowledge o f e n v i r o n m e n t a l c o n s t r a i n t  greater  the r e g i o n a l l e v e l  imposed.  of the  f o r producing  of planning Site  offices  c o s t s and b e n e f i t s f o r an i n c r e a s e d v a r i e t y o f d i f f e r e n t conditions provides  for  b e n e f i t s , become  and d i s t r i c t  and c o m p a n i e s ,  from the o p e r a t i o n a l l e v e l . difficult.  defined  a n a l y s i s has been aimed a t t h e  a t the l o c a l  Also higher  e f f e c t s ) can  i s essential.  and  local  Before  a s more s t r i n g e n t c o n s t r a i n t s a r e  and i n f o r m a t i o n  aggregation  resources  environ-  a t the  form a t the r e g i o n a l l e v e l .  contribute to the a n a l y s i s , a c l e a r l y  objectives  their  implications of  confidence  in regional  an o v e r v i e w o f f o r e s t  resource  site  estimates. allocation  130 is  available.  T h i s i s important  n i t u d e of impacts policies. resource  for determination  o f t h e mag-  o f p o s s i b l e management a l t e r n a t i v e s  Also there u s e s and  is flexibility  values according  for spatial  to l o c a l  or  allocation  demand and  of  supply  factors. The may  example o f C h a p t e r  be  available  To  u n d e r t a k e any  resources  of  the  from economic  size  and  In Chapter and  p o p u l a t i o n and detrimentally  shows t h a t c o n s i d e r a b l e b e n e f i t s analysis.  a n a l y s i s i t i s necessary  in conflict  information.  VII  seek p e r t i n e n t b i o l o g i c a l VII  i t was  v a r i a t i o n of the t o be  affect  t o have  S o c k e y e Salmon  and p h y s i c a l estimates  spawning  possible solutions i s increased,  importance o f the d i f f e r e n t  apparent  and  i n general  resource  a better understanding  values  the  becomes  of the  problem  obtained. Information timber  deficiencies  values, l e t alone  does o f t e n p r o v i d e a f e e l i n g values data  and  i t identifies  deficiencies  therefore, results  and  rarely  allow a precise estimation  other values.  However, a n a l y s i s  f o r the magnitude of  sensitive variables,  where improvements  c o u l d be  resource  areas  i n data  of  serious  quality  available at relatively  low  and, cost.  Management a l t e r n a t i v e s p r o v i d i n g i n c r e a s e d o v e r a l l b e n e f i t s may  may  salmon.  relative  of  helpful  the  aware o f t h e p a t h w a y s by w h i c h l o g g i n g  Awareness o f o t h e r  is  t o examine  be  suggested.  Economic a n a l y s i s i s not resource  planning  recommended  for a l l forest  s i t u a t i o n s because o f a c u r r e n t d e f i c i e n c y  1 31 in  suitably  trained  p e r s o n n e l and  because i t i s not  always  warranted. It  i s recommended t h a t a n a l y s i s  important  resource c o n f l i c t s  Once a r e s e r v o i r  is initially  which l a c k " i n t u i t i v e "  of experience  and  i n f o r m a t i o n has  up more g e n e r a l a p p l i c a t i o n s become  i n c l u d e t h o s e where t h e r e i s an a r e low  technically on  from  experience  i n f e a s i b l e or  In the  latter,  estimates  are  gained  uneconomic i n other  where is  ( a g a i n depends  situations).  o f r e s o u r c e v a l u e s may  be  required to  recommended  impractical.  Improvement i n a v a i l a b l e  data  u s e f u l n e s s o f economic a n a l y s i s Currently available different  built  i s not r e q u i r e d  s a t i s f y managers o f p r o t e c t e d v a l u e s t h a t t h e i r constraints  been  where t h e c o n s t r a i n t  intuitively  e x t r a p o l a t i o n of experience  solutions.  absence o f c o n f l i c t ,  and  in  practical.  S i t u a t i o n s where e c o n o m i c a n a l y s i s  costs  used  i s necessary  in forest  resource  planning.  i n f o r m a t i o n i s d i s p e r s e d amongst  g o v e r n m e n t a g e n c i e s , c o m p a n i e s and  C o l l a t i o n of t h i s  to i n c r e a s e the  i n f o r m a t i o n and  provision  u p d a t i n g o f the data base i s a p r e r e q u i s i t e  universities. f o r feedback  and  o f a program  of  analysis. An  understanding  r e s o u r c e v a l u e s and  of the b i o l o g i c a l their  systems o f the  i n t e r a c t i o n s with  different  the environment i s  important. More e n v i r o n m e n t a l s t u d i e s of the f i s h and  i f carried  out  s t u d i e s s h o u l d be  environment  encouraged.  interactions  i n o n l y a few  r e p r e s e n t a t i v e o f the whole a r e a .  are  watersheds, w i l l  Detailed  expensive, not  Complementing t h e s e  be studies  132 with  less  i n t e n s i v e examination  i m p r o v e g e n e r a l knowledge and specific Island start  conditions.  and  the  ability  to accounting  site Vancouver  procedures  has  much p o t e n t i a l  for  constraints.  a l r e a d y been d e s i g n e d  (Ottens,  Once e s t a b l i s h e d , t h e c o s t s o f m a i n t a i n i n g a  suitable  accounting  has  a  information.  c o s t information f o r environmental  A c o s t i n g system f o r roads  The  will  S l i m Creek watershed near P r i n c e George a r e  improved timber  1975).  to allow for  S t u d i e s a t C a r n a t i o n C r e e k on  t o o b t a i n i n g some o f t h i s  Attention  of a d d i t i o n a l watersheds  s y s t e m w o u l d be  B.C.F.S. and  disadvantage  other  minimal. resource agencies  will  remain a t  u n l e s s c o o p e r a t i o n w i t h companies o r a c c e s s  a  to  Crown C o r p o r a t i o n i n f o r m a t i o n i s a v a i l a b l e . Inventory  data  are of  fundamental  analysis.  Manpower and  limiting.  Recommendations  resource  data  (Pearse,  1976)  Economic for  efficiency modelling gains.  through  alone.  costs  Although  are  inefficient  Great  Expensive i f they  The  potential  likely the  by  information)  gains  personnel.  thesis,  a l s o have  collection  c o s t more t h a n  of  recommended  studied i n this  data  remain  agencies  company  i s not  resource  to  type  amongst  need t o c r i t i c a l l y  r e s e a r c h programs and likely  t o any  and  potential  i n a s s e s s i n g the value of data  o f p o s s i b l e f u t u r e uses.  to the  not  ( a d m i n i s t r a t i o n and  Problems e x i s t  relative  cooperation  increased participation  implications.  s y s t e m s and  include broadening  i n p u t i n the p l a n n i n g process  i t s presence  transaction  budget c o n s t r a i n t s a r e  collected and  importance  because  assess  t o r e m a i n aware o f  inventory  costs  is reinforced.  i s s e e n f o r use  o f computer t e c h n o l o g y ,  to  133 simulate variations analysis  o f t h e numerous" a s s u m p t i o n s ,  of environmental  The p r o c e d u r e i n c l u d e s  constraints. no a l l o w a n c e  w i t h whom r e s p o n s i b i l i t y f o r o r g a n i s e d rests. and  Acceleration  o f the trend  implications  of their actions,  and  appropriately  Economic a n a l y s i s the  f o r t h e human environmental  to train  r e s o u r c e managers t o u n d e r s t a n d  to react  variable, disruption operators  environmental  to interpret physical  conditions  i s recommended.  i n forest planning  i n B r i t i s h Columbia,  accepted o b j e c t i v e  and i n f o r m  the l i k e l y  i m p o r t a n t e c o n o m i c and e n v i r o n m e n t a l  resources,  necessary i n  o f maximum  functions  of forest  i n pursuance o f the g e n e r a l l y  s o c i a l welfare.  outlined  i n t h i s t h e s i s , i s an i n i t i a l  economic  input  i n the planning  i s necessary to d i r e c t  process.  attempt  The p r o c e d u r e , at involving  1 34 LITERATURE CITED  Apsey, T.M., M.M. 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P r o g r e s s R e p o r t on E.P.371, R e s e a r c h D i v i s i o n , B.C.F.S., V a n c o u v e r , B.C. 33p + App. S m i t h , J.H.G. and A. Kozak, 19 70. A n a l y s i s o f T r e n d s and V a r i a t i o n s i n Annual H a r v e s t o f Timber i n B r i t i s h C o l u m b i a as a G u i d e t o E x p a n s i o n and M o d u l a t i o n o f Y i e l d . Unpublished Report. Faculty of F o r e s t r y , U.B.C, Vancouver. 10p. T e e g u a r d e n , D., 1976. Comments and V i e w p o i n t s . In W. M c K i l l o p and W.J. Mead (eds) T i m b e r P o l i c y I s s u e s i n B r i t i s h Columbi. U.B.C. P r e s s , V a n c o u v e r . pp.233-239. Thompson, C F . , 1977. P a r t i a l C u t t i n g i n a Mixed W e t - B e l t Type R e s e a r c h Note No.78. B.C.F.S., V i c t o r i a . 9p. W o r k e r s C o m p e n s a t i o n B o a r d , 1978. Regulations. V a n c o u v e r , B.C.  Industrial  H e a l t h and  Safety  Young, B., 1977. S h o u l d I n d e p e n d e n t s be B a n d i n g T o g e t h e r t o Hammer Out C o n t r a c t s . B r i t i s h C o l u m b i a Lumberman 61 ( 6 ) : 4 1 -  140 APPENDIX IFOREST INDUSTRY EMPLOYMENT S T A T I S T I C S FOR BRITISH COLUMBIA Contents 1 . Definitions 2.  British  3.  Kamloops  4.  Employment M u l t i p l i e r s  Columbia District  5. Recommended Employment  Indicies  1v D e f i n i t i o n s a) D i r e c t Employment. jobs  i n logging  This  and t h e wood p r o c e s s i n g  b) I n d i r e c t Employment. T h i s materials industry.  supplied  by o t h e r  I t includes  struction, materials administration c)  sectors  o f t h e economy  included  The B.C.F.S.,  in this  resource  (Reed, 1 9 7 5 a ) .  employment  (Reed, 1 9 7 5 a ) .  environmental c o n s t r a i n t s u s u a l l y d i f f e r r e g i o n a l and P r o v i n c i a l l e v e l s . -  s e r v i c e s and head o f f i c e  effects, particularly  and income e f f e c t s o f between  Additional  Therefore,  o f an i n d i r e c t  t o be s u b s t a n t i a l l y g r e a t e r  local,  processing,  administration  l o c a t e d o r based i n l a r g e c e n t r e s .  likely  category  the  con-  g r o u p c o v e r s t h e consumer goods a n d  G e o g r a p h i c a l A g g r e g a t i o n . Employment  supplies,  t o the f o r e s t  and r e p a i r  r e q u i r e m e n t s o f t h e d i r e c t and i n d i r e c t  categories d)  r e f e r s t o t h e s e r v i c e s and  and s u p p l i e s .  i s also  by  industry.  transportation, capital  I n d u c e d Employment. T h i s  service  r e f e r s t o employment p r o v i d e d  are often  total Provincial  and i n d u c e d n a t u r e a r e  than a t the l o c a l  level.  141 Changes i n employment and income a r e l i k e l y gain  to the l o c a l  opportunities. effect and  economy w i t h  the a v a i l a b i l i t y  opportunities Production estimate local  c h a n g e s may  have m i n i m a l  economy, b e c a u s e o f i t s r e l a t i v e  size  o f a l t e r n a t i v e i n v e s t m e n t s and employment  e l s e w h e r e i n t h e economy. a n d employment f i g u r e s f o r B.C. a r e u s e d t o  employment  indicies  i t s limited alternative  By c o n t r a s t , l o c a l  on t h e P r o v i n c i a l  t o be a l o s s o r  indices; f o r the Province.  a r e based on data  D i s t r i c t and  f r o m t h e Kamloops F o r e s t  District. 2. B r i t i s h a)  Columbia  Sources o f Information.  B.C. F o r e s t  Service Annual  f o r v o l u m e s o f roundwood h a r v e s t e d . a n n u a l l y . Canada f o r F o r e s t  Industry  Statistics  employment f i g u r e s .  b) Table  20  D i r e c t Employment i n t h e B.C. F o r e s t I n d u s t r y 1965-1974 ( I n c l u d e s l o g g i n g , wood p r o c e s s i n g and p u l p and p a p e r i n d u s t r i e s ) Year  Total employed  Volume harvested (thousand m )  Reports  Man-yea thou'sam  3  1965  73,421  43,410  1 '69  1966  73,324  45,360  1 '62  1967  71,428  44,540  1 '60  1968  72,780  48,140  1 «51  1969  76,875  53,520  1 .44  1970  73,999  54,740  1 '35  1971  78,343  56,550  1 «39  1972  83,599  55,610  1 »50  1973  92,235  70,140  1 «32  1974  87,350  60,030  1 «46  142 FIGURE  4  D I R E C T EMPLOYMENT I N THE B . C . F O R E S T I N D U S T R Y 19 65-1974 ( m a n - y e a r s / 1 , 0 0 0 m ) 3  Provincial Kamloops F o r e s t D i s t r i c t • ( l o g g i n g and s a w m i l l i n g )  1 -.6  O .x  Recommended values ®  r  1 »5 4  1-44  1*3 i  1 «2  1 vl  1 »0 A  0«9 1966  1968  1970  1972 Year  . 1974  1976  143 From t h e t r e n d ,  drawn i n F i g u r e  ment i n d e x  o f 1*4 man-years/1,000 m  Provincial  forest  3. Kamloops  3  i s recommended  District The a n n u a l roundwood h a r v e s t s  i n d u s t r y employment f i g u r e s a r e f r o m F o r e s t  Management  f o r the  industry.  a) S o u r c e o f I n f o r m a t i o n . the  4, a c u r r e n t d i r e c t employ-  Service  and District  Reports.  b) Table  21 D i r e c t Employment i n t h e F o r e s t I n d u s t r y Kamloops F o r e s t D i s t r i c t 1967-1976 ( L o g g i n g and s a w m i l l i n g i n d u s t r i e s )  Year  Total men  employed. manmonths  Man-years ( a l l o w 10 mth's per year)  Volume harvested (thousand m )  Man -ye 1 ,000  3  1967  8,365  73,097  7,310  6,040  1 •21  1968  7,843  71,492  7,149  6,150  1 •16  1969  9 ,260  89,571  8,957  7,490  1 •20  1970  8,660  81,581  8,158  7,360  1 •11  1971  9,141  86,902  8,690  8,280  •1 •05  1972  7,426  72,862  7,286  7 ,220  1 •01  1973  9 ,073  92,072  9 ,207  8,370  1 •10  1974  7,730  70,217  7,022  6,260  1 •12  1975  7,385  65,851  6,585  5,610  1 •17  1976  7,699  78,126  7,813  7,940  0 •98  From F i g u r e 1,000 m  3  i s recommended  the D i s t r i c t index  (ten  f o r 1978.  o f 1*05 m a n - y e a r s /  I f t h e employment f i g u r e s f o r  plywood i n d u s t r y a r e added a d i r e c t  o f 1*2 man-years/1,0 00 m  Forest D i s t r i c t 1976.  4 a b a s i c employment i n d e x  3  i s obtained  employment  f o r t h e Kamloops  Plywood i n d u s t r y f i g u r e s were o b t a i n e d  T h e s e were a t o t a l  only f o r  o f 8,480 man-months o r 848 m a n - y e a r s  months work p e r m a n - y e a r ) .  144 A v e r a g e a n n u a l volume h a r v e s t e d o v e r t h e 1976  was  7,069,000 m .  y e a r s per 848  For  3  1,000  m  total  divided  1,0 00  m  this represents  3  man-years f o r by  the  plywood  7,069,000 m  i s obtained.  3  man-years p e r  1»2  4.  Employment M u l t i p l i e r s  a)  The  multiplier  1,000  The in  the  forest  at  1*05  7,422 m a n - y e a r s .  industry  i s added t o  a  of  figure  1*18  for  the as  by  B.C.  the  the  man-  If this  the and  man-years  Forest  direct,  direct  i n an  the  per index  Industry  indirect  2»43  Okanagan  2»49  multiplier  was  estimated at  is related  to  1*8  and  employment.  employment m u l t i p l i e r s  P r i n c e George  industry  to  3  i s defined  (1973) i n d i c a t e d  Provincial  milling  19 67  m.  i n d u c e d employment d i v i d e d Reed  3  and  years  R o u n d i n g t h i s number r e s u l t s  of  by  logging  ten  2*8  Studies  of:  ( i . e . each  jobs i n  job  other  industries). b)  Source of  Ministry  of  information:  "The  C e n t r a l Report  Economic Development  (1976).  In  76"  2«8  industry  to  2*7  c)  Figures obtained  Direct  or  for as  development  Indirect  1-15  to  1*24  employment:  a regional men  forestry)  B.C.  employment of  2«6  increasing  progressed.  from d i s c u s s i o n  Employment a t  excluded)  (including  the  i t s various  development p r o f i l e s t h i s r e p o r t used r e g i o n a l multipliers  by  per  w i t h B.C.F.S.  level 1,000  (with the m. 3  personnel.  pulp  industry  145 Industry Transport Capital  J o b s p e r 1,000  other  than  logs  and r e p a i r  0*14 - 0*25 0*04 - 0»09  Total  0«39 - 0«62  I n d u c e d employment m u l t i p l i e r s . indirect  indirect  3  0*21 - 0»28  M a t e r i a l s and s u p p l y  direct,  m  and i n d u c e d  The m u l t i p l i e r  i s d e f i n e d as  employment d i v i d e d by d i r e c t a n d  employment. Multiplier Small Larger  area area  Province If it  1*6 - 1*8 c l o s e t o 2*0  the i n d i r e c t  i s found  1-2 - 1*3  and i n d u c e d  that expected  Small Larger  area area  employment m e a s u r e s a r e c o m b i n e d  employment m u l t i p l i e r s a r e :  - Locale - Region  Province  1*5 - 2*0 2*1 - 2*7 2»5 - 3»2  •5. Recommended Employment I n d i e i e s Level  D i r e c t employment (man-years/1,0 00 m )  Employment  multiplier  3  Local  1*2  1«8  Regional  1*2  2«45  Provincial  1*4  2*8  146 -  APPENDIX I I FOREST INDUSTRY VALUE ADDED STATISTICS FOR BRITISH COLUMBIA Contents 1.  Definition  2. Sources of Information  1.  3.  Tabulated  4.  D i s c u s s i o n and Recommendations  Statistics  D e f i n i t i o n of Value Added "The  s e l l i n g value of shipments minus the c o s t o f manufac-  t u r i n g m a t e r i a l s and s u p p l i e s minus the c o s t o f f u e l and t r i c i t y consumed p l u s or minus i n v e n t o r y adjustments.  elec-  This  measure of value e l i m i n a t e s double c o u n t i n g between s e c t o r s of the i n d u s t r y .  However i t does tend t o understate the  impact  of the i n d u s t r y as i t i g n o r e s important elements of c o s t  (raw  m a t e r i a l s , energy) which must be recovered from s a l e s revenue." (Reed,  1973).  2. Sources of Information Volumes o f roundwood harvested from B.C.  Forest Service  Annual Reports. Value added s t a t i s t i c s from S t a t i s t i c s I n d u s t r i a l roundwood end use i n B.C.  Canada.  (1963,  1973)  from Reed  (1975a).  3.  Tabulated  Statistics  a) Changes i n a l l o w a b l e c u t i n which supply of p u l p l o g s i n a d d i t i o n to sawlogs i s e f f e c t e d .  The value added f i g u r e i s  based on the summation of v a l u e s added f o r the l o g g i n g , wood  147 processing  Table  and p u l p  and p a p e r  sectors  (Table 22).  22 A v e r a g e V a l u e Added ( p e r m ) o f L o g s H a r v e s t e d - B.C. F o r e s t I n d u s t r y 19 65-1974 3  Year  V a l u e added (thousand d o l l a r s )  Log volume (thousand m )  Average value ($/m )  3  1965  848,128  43,410  19*5  1966  875,309  45,360  19-3  1967  909 ,412  44,540 '  20*4  19 68  1,105,599  48,140  23*0  1969  1,225,791  53,520  22 »9  1970  1,072,860  54,740  19-6  1971  1,237,802  56,550  21 «9  1972  1,567,712  55,610  28«2  1973  2,205,056  70,140  31 «4  1974  2,270,073  60,030  37*8  b) S m a l l  changes i n a l l o w a b l e  cut.  component o f t h e i n d u s t r y v a l u e  The p u l p  added  demand a s u r e processing supply Also  supply  o f raw m a t e r i a l .  p l a n t s a r e more s e n s i t i v e  because o f t h e i r  lower c a p i t a l  and paper  i s excluded.  depend on l a r g e v o l u m e s o f wood and t h e i r  high  and v e r y  volume o f l o g s destined  little  directly  1973 f i g u r e s ) .  The v a l u e  15%  (lack o f information  for  pulp  c o s t and  cost wood  production. supply  from t h e l o g .  i s from  The t o t a l  22 t o a l l o w  f o r logs  (15% o f t o t a l f r o m 19 63 and  added f o r l o g g i n g to differentiate  l o g s and f o r s a w l o g s )  capital  mills  t o s m a l l c h a n g e s i n wood  i s r e d u c e d by 15% f r o m T a b l e  directly for pulpmills  Pulp  S a w m i l l s and o t h e r  i n t h e i n t e r i o r n e a r l y a l l t h e p u l p wood  residues  added  3  (Table 23).  i s a l s o r e d u c e d by  between v a l u e  added  148 Table  23  A v e r a g e V a l u e Added ( p e r m ) o f L o g s H a r v e s t e d B.C. L o g g i n g and Wood P r o c e s s i n g I n d u s t r i e s 19 65-1974 3  Year  V a l u e added (thousand d o l l a r s )  Log volume (thousand m) 3  Average value ($/m ) 3  1965  561,259  36,880  15*2  1966  58 8,36 7  38,540  15*3  1967  617,635  37,840  16*3  1968  786,214  40,890  19-2  1969  838,452  45,460  18*4  1970  666,047  46,500  14*3  1971  834,166  48,030  17*4  1972  1,131,523  47,240  24»0  1973  1,589,405  59,580  26*7  1974  1,325,245  51,000  26«0  4.  D i s c u s s i o n a n d Recommendations Trends i n both  Tables  22 and 23 a r e shown i n F i g u r e 5.  portrays a rapidly  rising  v a l u e added t r e n d f r o m  due  t o both  figures trend  v o l u m e and p r i c e  (1975, 1976) i t i s d i f f i c u l t  c o n t i n u e s , and what t h e l i k e l y  example w i t h o u t  to g r e a t l y The  the  1970 t o 1974  W i t h o u t more r e c e n t t o a s c e r t a i n whether values are today.  this  For  s u b s t a n t i a l m a r k e t r e s e a r c h i t i s n o t known  whether t h e wide d i v e r g e n c e  that  effects.  This  increased pulp  depressed  between T a b l e s  and p a p e r p r i c e s ,  22 and 23 i n 1974 due has been  m a r k e t c o n d i t i o n s i n 1975 and 1976  t h e v a l u e s added p e r c u n i t h a v e p r o b a b l y  maintained. indicate  increased during  19 74 t o 1977 p e r i o d a t a r a t e somewhat l e s s  than  f o r the  1971 t o 1974 p e r i o d . It  i s recommended  t h a t f i g u r e s of $42»5/m  3  f o r Table  22 and  149  FIGURE 5 VALUE ADDED PER m OF LOGS HARVESTED B.C. FOREST INDUSTRY 19 65-1974 3  L o g g i n g , wood p r o c e s s i n g and p u l p and paper Logging and "wood p r o c e s s i n g  Recommended values •  o x  40  35  J  30  Value" added ($/m ) 3  25 J  20  4  i>  o  15  10  J  19.66  196 8  1970  1972  Years  1974  1976  1978  150  $32/m  3  f o r Table  effects analysis  2 3 be  used to o b t a i n o r d e r s  of r e d u c t i o n i n allowable  cut.  o f magnitude  I f a more  i s required further research w i l l  be  critical  necessary.  of  151 APPENDIX I I I GOVERNMENT REVENUES FROM THE FOREST INDUSTRY IN BRITISH COLUMBIA Contents  1.  1.  Introduction  2.  Forest  3.  T o t a l Government Revenues  4.  D i s c u s s i o n and  5.  R e c e n t Stumpage V a l u e s f o r c u t p e r m i t s o f s i m i l a r and o f c l o s e p r o x i m i t y t o t h e Seymour R i v e r  Service  Revenues  Recommendations  Introduction Government r e v e n u e s  forest  (both  industry include Forest  royalty  and  various  forms o f  other  taxes  on  i n the  S e r v i c e Revenues  Sources of (Pearse,  1976)  information and  p r o v i n c i a l ) from  Serv i ce r e v e n u e s readily  which f i g u r e s are  the  (stumpage,  identified  and  r  less accessible.  f o l l o w i n g t a b l e s are discussed  form, t h e b a s i s f o r recommended Forest  f e d e r a l and  charges) which are  Recent f i g u r e s g i v e n  2.  type  and  values.  1975-1975 are  the  1976  R o y a l Commission  B.C.F.S. A n n u a l R e p o r t s ,  (Table  Report  24).  3. T o t a l Government Revenues Sources of (Tables 4.  25  and  information:  Figure  6:  (1973) and  Reed  (1975a)  26).  D i s c u s s i o n and Observations  Reed  Recommendations from e x a m i n a t i o n o f T a b l e s  24,  25  and  26  and  152  Table  24  B.C. F o r e s t  Year  Stumpage  S e r v i c e Revenues  Provincial R o y a l t y and T o t a l other charges $ million  19 65-1976  Volume harvested (thousand m)  Revenue ($/m ) 3  Kamloops District Revenue ($/m ) 3  3  1965  42«0  5*6  47*6  43,410  1 •10  1966  42*6  6-4  49»0  45,360  1 •08  1 «49  1967  34*7  7-3  42*0  44,540  0 •94  0*78  1968  44.4  9.4  53*8  48,140  1 •12  2»33  1969  78»3  11 »2  89.5  53,520  1 •67  1 «87  1970  53*5  11 -5  65-0.  54,740  1 •19  1 «17  1971  49 -7  11*2  60»9  56,550  1 •08  N.A.  1972  91 »2  11 »4  102*6  55,610  1 •84  N.A.  1973  230*6  14*2  244*8  70, 140  3 •49  5«44  1974  181*6  15-6  197-2  60,030  3 •29  4.59  1975  43*4  16-6  60«0  50,030  1 •20  0*74  1976  N.A. = N o t a v a i l a b l e See F i g u r e 6  0»71  153  FIGURE 6 AVERAGE B.C. FOREST SERVICE REVENUES ($/m )  19 6 5 - 1 9 7 6  3  x  Province  o  Kamloops F o r e s t District  x.  X  o  0 •5 '  > 1966  i 1968  t 1970  t  i  1972  1974  Years  i 1976  i 1978  Table  25 F e d e r a l T a x e s f r o m t h e B.C". F o r e s t : 1969, 1971 and 1972 1969 Revenue <$ m i l l i o n )  $/m  . 1972 Revenue ($ m i l l i o n )  $/m  50*6  0*9  101*7  1*8  1*4  87*1  1*6  133*8  2*4  180*7  3*3  137*7  2*5  2 35 * 5  employee  113*5  2*1  119*7  2*3  160*5  2*9  Total  294*2  5*5  257*2  4*8  396*0  7*1  Manufacturers Employee Total direct  $/m .  1970 Revenue ($ m i l l i o n )  104*1  1*9  76*6  Industry  3  3  3  4*2  Indirect  Table 2 6 Provincial  Revenues f r o m t h e B.C. F o r e s t 1969, 1971 a n d 1972  1969 Revenue ($ m i l l i o n ) F.S.  Revenue  Manufacturers' tax Employee tax Total direct  $/m  3  '  1970 Revenue ($ m i l l i o n )  $/m  3  Industry  1972 Revenue ($ m i l l i o n )  $/m  3  89*5  1*7  65*0  1*2  102*6  1*8  104*8  2*0  67*5  1*2  93*2  1*7  19*9  0*4  23*0  0*4  43*3  0*8  214*2  4*0  155*5  2*8  239*1  4*3  46*5  0*9  48*4  0*9  80*0  1*4  260*7  4*9  203*9  3*7  319*1  5*7  Indirect employees Total  Note: P r o v i n c i a l revenues i n c l u d e s  municipal  taxes  155 a)  Substantial  f l u c t u a t i o n of  market c o n d i t i o n s 1974)  b)  The  Kamloops f o r e s t d i s t r i c t than the  The  Other  e)  (e.g.  to The  19 7 0 ,  l a c k of  magnitude of  full  tax  species,  data  average  be  and  on  year  market  1969).  are  s i m i l a r to the  period  f o r the  last  preclude  can  be  five  y e a r s and  a precise  given  i s an  fluctua-  estimate  of  i n d i c a t i o n of  the  values.  on  local  local  stumpage r a t e s  industry  taxation  f o r the d i f f e r e n t  rates  is available,  this  used.  Average r a t e s 1)  better  regulations  A l l that  If information  should  fluctua-  1972.  revenue v a l u e s .  g)  and  comments:  t i o n s w i t h market c o n d i t i o n s  f)  r e v e n u e s show g r e a t e r  a l s o d e p e n d s g r e a t l y on  poor year  I t i s assumed t h a t  1969  1973  good y e a r s  Provincial figures.  manufacturers tax  conditions  d)  1970,  poor year  with  .  tions c)  (e.g.  f o r e s t s e r v i c e revenues  of  Government r e v e n u e f r o m t h e  forest  P r o v i n c i a l revenues Manufacturers' tax Service revenues Employee income  $/m  3  and  Total  2»8  tax  T o t a l revenues from and e m p l o y e e s I n d i r e c t and taxation  Forest  induced  -  4-0  0*9 industry 3'7  - 4.9  employee 1 »6 5.3  - 6»5  industry.  156  2)  F e d e r a l revenues  $/m  Manufacturers  1  Employee  3  tax  income t a x  -  2  2 » 5  T o t a l revenues from i n d u s t r y and e m p l o y e e s I n d i r e c t and i n d u c e d taxation  3 » 5  4*5  -  employee 3-0  6-5  Total  -  7-5  h) N o t e s Employee as  are l i k e l y  a minimum i n c r e a s e has b e e n a l l o w e d  using  these  values  considered. or  income t a x e s t i m a t e s  zero  economic r e n t .  This  conservative  1972.  operations  conditions w i l l  In  should  result  be  i n low  implies:  S e r v i c e r e v e n u e s a t a minimum o f $ 0 * 4 / m .  Forest  3  Lower m a n u f a c t u r e r s ' $1/m  for since  the cost of harvesting  Adverse harvesting  t o be  and F e d e r a l  3  Employee labour  t a x a t i o n , e.g. P r o v i n c i a l towards  income t a x may content  $1/m . 3  increase  i n harvesting.  knowing t h e i n c r e a s e  towards  i n labour,  s l i g h t l y with T h i s may  a  higher  be c a l c u l a t e d  a v e r a g e wage and t a x  r a t e s and p r o d u c t i v i t y c h a n g e s . The l e v e l  o f government revenue t h a t  change i n a l l o w a b l e are  readily  If  be a p p l i e d t o a  c u t depends on a s s u m p t i o n s o f w h e t h e r  a v a i l a b l e e l s e w h e r e i n t h e economy.  unemployment r a t e e x c e e d s 8 % i n B.C. a l w a y s be  should  and l a b o u r  jobs  C u r r e n t l y the m o b i l i t y cannot  assumed.  allowable  cut reductions  employment, one s h o u l d  do have a p e r m a n e n t  effect  be aware t h a t g o v e r n m e n t r e v e n u e s i n  on  157 effect  a r e r e d u c e d by p a y i n g o u t unemployment  benefits  as w e l l  as a d e c r e a s e i n income t a x . 5. R e c e n t Stumpage V a l u e s f o r C u t P e r m i t s o f S i m i l a r a t C l o s e P r o x i m i t y t o t h e Seymour R i v e r Hemlock and b a l s a m have s t a y e d stumpage minus  of $0»4/m .  Indicated  3  consistently  Type and  a t t h e minimum  stumpage h a s been m i n u s $5 t o  $10/m . 3  S p r u c e has p r e d o m i n a t e l y stumpage  stayed  i n t h e r a n g e o f $0 t o minus  at $0«4/m  3  w i t h an  indicated  $3»4/m . 3  W h i t e p i n e h a s commonly b e e n i n t h e r a n g e o f $14 t o $21/m during  3  1977.  Stumpage following  values  f o r cedar  f r o m two c u t p e r m i t s have shown t h e  trend: C e d a r stumpage • ($/m )  Date  3  .11.76  0«4  . 2.77  1*3  .3.77  1*6-2.4  . 4.77  2»5  . 8.77  1*2  .10.77  3«2  .11.77  4«5  .12.77  6«3  From t h e s e f i g u r e s t h e Seymour  '-0»5 -  River  the following  stumpages were c h o s e n f o r  example:  Species  Stumpage ($/m ) 3  Cedar  2» 1  Douglas-fir  2*1  Spruce  0*4  Hemlock  0•4  Balsam  0*4  White p i n e  14• 1  158 Note: what  It  is  likely  higher.  that  However  studied  and as  valume,  its  Douglas  effect  the  stumpage  figures fir  on t o t a l  were  for  not  contributes values  is  Douglas  obtained less small.  than  fir  is  some-  from cut 2% o f  permits  the  total  159  APPENDIX  IV  VOLUMETRIC INFORMATION FOR ALTERNATIVES a AND  MANAGEMENT c  Procedure 1.  C o n s t r a i n t a r e a s were m e a s u r e d by  (1  i n c h to 40  resource 2.  t o as no  the area.  reduced  forest  c o v e r map  by  20%  on  figures  3.  Merchantable  and  zonal average  detailed  f o r the  1:31680  the  Seymour R i v e r  These volumes  (have  allowances  t o a l l o w f o r b r e a k a g e and  for similar  reduced  volume p e r a c r e l i n e s were  i n v e n t o r y i n f o r m a t i o n was  types  i n a nearby  volumes i n T a b l e s 2 ,  aggregating the products o f priate  t y p e on  folio.  B.C.F.S. l o c a l  referred for  chain)  forest  per acre l i n e  forest  f o r d e c a y ) were  l o g g i n g waste  (based  cut permit).  3- and  5 result  type areas  volumes.  available  and  from  the  appro-  160 APPENDIX V COSTS OF SELECTION LOGGING LEAVING 50 PER CENT OF THE CROWN COVER After cost  d e f i n i n g t h e main assumptions  effects  o f a r e d u c e d volume p e r ha h a r v e s t e d  clearcutting) effects)  f o r the operation, the  and r e t e n t i o n o f t h e s m a l l e s t t r e e s  are estimated.  (piece  These a r e then i n c o r p o r a t e d  c a l c u l a t i o n o f t h e firmwood l o g g i n g c o s t s 1.  (compared t o size  into  (allow f o r decay).  Assumptions Costs  a r e f r o m t h e B.C.F.S. Kamloops F o r e s t  A p p r a i s a l Manual 50%  19 77.  o f t h e crown c o v e r  Slopes  District  i s retained.  a r e 0-30%.  Average t r e e s i z e  i s i n excess o f  Unfavourable problem f a c t o r s  (poor  1m . 3  drainage)  occupy  21-30% o f t h e a r e a . The 40% 2.  s e l e c t i o n p r e s c r i p t i o n reduces the harvested  v o l u m e by  f r o m 495m /ha t o 300m /ha. 3  Cost  3  E f f e c t s o f Reduced Volume  From a p p r a i s a l m a n u a l :  3.  Piece  Falling  plus  $0.-.113/m  Skidding  plus  $0»071/m  Landings  plus  $0»06/m  Cruising-Marking  plus  $0»046/m  3  3  3  3  Size E f f e c t s  Tree s i z e d i s t r i b u t i o n  from n e a r b y c u t p e r m i t  i n similar  1 forest  types  (corresponds  T r e e volume  (m )  to Table 0*42  3  % o f h a r v e s t volume if clearcut  4  8 i n Chapter  0*57  0*85  3  % o f h a r v e s t volume i f selection cut These t r e e  (clearcut—selection  operation,  5  88  2  98  differences  cut).  Falling  $0*053/m  3  Line  $0*166/m  3  skidding  unable t o estimate  N o t e x p e c t e d t o be g r e a t  t h e volume i s c o n c e n t r a t e d  4. Summary o f L o g g i n g  plus  to the apprais  the estimates of cost  L o a d i n g and h a u l i n g differences.  1*0  s i z e d i s t r i b u t i o n s were a p p l i e d  manual p r o c e d u r e t o o b t a i n  VII).  cost  as even f o r c l e a r c u t i n large trees  ( 1*0m ) 3  Costs  C o s t element  Clearcut  Selection ($/m ) 3  Falling'  1*416  1*476  Bucking  0*459  0*459  Skidding  3*479  3*383  Loading  1*059  1*059  2*649  2*649  1*307  1*307  Management and s u p e r v i s i o n  1*024  1*024  Cruising-marking  0*106  0*177  . 0*2.93  . . 0*463  Hauling Towing  (32 km) (58 km)  Landings  11*79 Roading c o s t s  12*00  a r e e x a m i n e d i n s e c t i o n 7.c o f C h a p t e r V I I .  162 5. Firmwood It  Timber H a r v e s t i n g  Costs  i s assumed t h a t f i r m w o o d h a r v e s t i n g c o s t s i n c r e a s e i n  p r o p o r t i o n t o t h e decay p r e s e n t  Table  1976).  27 Firmwood  decay  Timber  Clearcutting ($/m ) 3  0  (Dobie,  Harvesting Costs Selection cutting ($/m ) 3  11 .79  12-00  10  13-10  13-33  15  13«87  14-12  20  14«74  15-00  25  15-72  16-00  30  16-84  17-14  35  18-14  18-46  40  19-65  20-00  APPENDIX V I  MAPS SHOWING LOCATION AND MAJOR CONSTRAINTS  OF THE  SEYMOUR RIVER RESOURCE FOLIO  164  FIGURE 7  

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