290003 Applied Forest and Natural Resource Economics

Responsible DepartmentForest & Landscape

Earliest Possible YearMSc. 1 year to MSc. 2 year
DurationOne block
Credits7.5 (ECTS)
Level of CourseMSc
ExaminationFinal Examination

oral examination

Some Aid allowed

Description of Examination: Oral examination, 30 minutes, questions provided two weeks beforehand, students may bring along a short outline of how they will respond to the question drawn.

Weight: 100%

7-point scale, external examiner
Requirement for Attending ExamOne written assignment delivered. Has to be accepted.
Organisation of TeachingLectures, seminars, exercises
Block PlacementBlock 2
Week Structure: C
Language of InstructionEnglish
Optional Prerequisites290020 
Or similar courses
Course Content
Introduction to general economics of biological production and capital investment.

Production economics and investment theory of forests and natural resources:

Fundamentals of forest economics; interest, depreciation and opportunity cost; optimal rotation age in timber production and including amenity values; valuing forestland under the risk of hazards to crop survival; planting and natural regeneration; thinning and other types of resource control; forest economics under uncertainty; The economics of continuous cover forestry (close-to-nature forestry).

Applied economic analysis as a management tool, including cases from relevant enterprises in the forest and nature based sector.

Welfare economic aspects of forests and natural resources:

Economic evaluation of non-marketed goods and services and its use in CBA

Payment for environmental services.

Regulation and taxation of forests and natural resources.

Discounting in the context of multiple objectives; stated and revealed preference analysis; sustainability, economics and ethics; ethical perspectives on natural resource management.

Teaching and learning Methods
The core subjects are presented through overview lectures and/or seminars and exercises. During exercises students will work with a series of assignments which will have to be delivered jointly before exam. Students are supposed to do self-studies of supplementary materials on (i) fundamentals for comprehending core subjects, (ii) in-depth studies of core subjects. Teacher(s)will be available for seminars/exercies and for answering questions with regard to self-studies.
Learning Outcome
Learning outcome
The course aims at imparting to the students a thorough understanding of economic reasoning and knowledge of how to apply economics as a tool for decision-making on the utilisation of forests and other (renewable) natural resources in rural and urban environments.

When the course is finished, it is expected that the student can/have:

Describe principles and procedures of forest and natural resource economics
Identify links between the ecological processes and the economic consequences and human goals
Understand and reflect on economic perspectives of long vs short term management decisions
Understand the economic value of different aspects in multiple-use forest and nature management and their possible conflicts or joint production possibilities
Classify and reflect on principles from the theory
Understand the principles of economic valuation of non-marketed goods
Show overview of socio-economic analysis of forest and nature goods

Economically apply and analyse theoretical and practical models for forest and nature management
Apply the appropriate theory and methods to relevant economic valuation in forest and nature management
Asses the possibilities and limitations of economic theories and methodologies related to forest and nature management
Understand and reflect critically on socio-economic analyses of forest and nature
Apply economic theory to analyse and model the welfare and business economic values of forests and natural resources

Apply principles and procedures of forest and natural resource economics to management decisions, including transferring principles of the economic valuation from one kind of good to another
Evaluate economically different goods and services from the same natural resource and identify possible joint production possibilities or economic conflicts
Discuss the relevance, reliability and validity of different natural resource economic methods
Evaluate socio-economic analysis of forest and nature goods, including distributional effects
Take into account the demands of society when applying bioeconomic models in order to evaluate projects economically

Course Literature
Finn Helles & Jette Bredahl Jacobsen: Lecture notes 2007: Applied Forest and Natural Resource Economics. New version will be available electronically and will be uploaded to the students.

Pre-requisite/ supplementary reading: Klemperer: Forest Resource Economics and Finance, McGraw Hill (several editions exist)
Course Coordinator
Jette Bredahl Jacobsen, jbj@life.ku.dk, Forest & Landscape Denmark/Unit of Forestry, Phone: 353-31746
Study Board
Study Committee NSN
Work Load