Economic Affairs
  • Year: 2018
  • Volume: 63
  • Issue: 2

A dynamic model of forestry for the dryland areas of West Bengal

1Department of Economics, Rabindra Bharati University, Kolkata-700050, West Bengal, India

2Department of Economics, University of Calcutta, Kolkata-700050, West Bengal, India

*Corresponding author: nilendu_chatterjee@rediffmail.com

JEL Classification: C61, Q20, Q23

Abstract

A dynamic model of forestry has been developed for the dryland areas of West Bengal. Harvest of both timber and non-timber forest products are considered and it has been assumed that a part of harvest of non-timber forest products is a function of harvest of timber products. Sensitivity analysis has been done by perturbating various parameters like change in the proportion of timber harvest obtained as non-timber forest products, change in the intrinsic growth rate of forest stock and also change in the discount rate. The model shows that the stakeholders associated with forestry in our study area are very much concerned about sustainability of forests due to lack of alternative livelihood opportunities. Contrary to the conventional wisdom, the paper shows that an increase in the proportion of timber harvest obtained as non-timber forest products reduces the optimal harvest of timber and also reduces the welfare of foresters.

Keywords

Dryland area, Timber harvest, Non-timber forest products, Sensitivity analysis