Sustainable management of uneven-aged private forests: a case study from Ontario, Canada

A matrix growth model is estimated on the basis of growth data (growth peri od 5 years) of 14 measurement plots of uneven-aged white pine from southern Ontario. The impact of three economic factors specific to the private fore sts on the sustainable management of private woodlots is evaluated and disc ussed, and the trade-off between environmental and economic values is exami ned. These three economic factors are: (1) choice of the rate of time prefe rence; (2) income and property taxes; and (3) subsidy for rehabilitation of degraded forests. Property tax, based on market price of land, is neutral, but income tax is not neutral with respect to harvesting decisions, growin g stock, environmental and ecological values, and economic values. High rat es of time preference and income tax will lead to the conversion of uneven- aged forest into even-aged young forest leading to the loss of ecological a nd environmental values. As a result of the discrete nature of tree distrib ution and prices of different size trees, increased income tax rates may no t result in higher tax revenue. The fiscal policies need be sensitive to th e nature of forests to encourage sustainable management practices on privat e woodlots. In the case of degraded private woodlots, a subsidy on rehabili tation cost will be desirable in place of property tax subsidy. (C) 1999 El sevier Science B.V. All rights reserved.