Contents: Principles of forestry economics are explained by means of the “one-tree-model”, the “Faustmann-Pressler-Ohlin-theorem” as criterion of intertemporal efficient timber production and of the interest theory after I. Fischer. The analysis of forestry focuses on timber production, the long-term timber supply, the land allocation and the provision of environmental goods. The management of enterprises deals with the strategic planning and forest management planning (inventory, auditing, medium-term planning) as well as with the planning and control of forest management measures (regeneration, tending, thinning, timber utilization).

In the optional compulsory part A an economic analysis is conducted for the provision and production of environmental goods. Case studies from the tropics serve as an illustration of the theory and are the foundation for exercises.

In the optional compulsory part B, the development of a continuous forest inventory design as well as the structure of a GIS aided management information system are conveyed, referring to a management example.

Objectives of qualification: The student understands principles of and the techniques in forestry economics and can apply these in the economic analysis of forestry and in the management of forest enterprises. The student masters the concepts of the intertemporal efficiency and the allocation of collective goods. He is able to utilize the economic instruments for the planning of the forest production, the preparation of managerial decisions and the management of a forest enterprise.

The module examination is a written test (90 minutes).