Economic theory suggests that managing every hectare of forestland for
multiple products, which is occurring in British Columbia, is ineffic
ient. Using a case study for the Revelstoke area of the province, we d
emonstrate that spatially separating commercial timber activities from
non-timber ones can lead to higher timber rents, while affording bett
er environmental protection, including protection of critical wildlife
habitat. Zoning provides an incentive to invest resources in intensiv
e management in areas dedicated to commercial timber production, while
enhancing the flow of other resource values from the unit as a whole.
With zoning it is possible to avoid areas where visual and environmen
tal amenity values are particularly sensitive, which is not possible w
ith current, multiple-use management regimes. By focusing timber produ
ction, it is possible to reduce the forestland base, required to maint
ain current levels of harvest, by over 50 percent.