The value of volume and growth measurements in timber sales management of the National Forests

This paper summarizes work performed in the estimation of gross social value of timber volume and growth rate information used in making regional harvest decisions in the National Forest System. A model was developed to permit parametric analysis. The problem is formulated as one of finding optimal inventory holding patterns. Public timber management differs from other inventory holding problems in that the inventory, itself, generates value over time in providing recreational, aesthetic and environmental goods. 'Nontimber' demand estimates are inferred from past Forest Service harvest and sales levels. The solution requires a description of the harvest rates which maintain the optimum inventory level. Gross benefits of the Landsat systems are estimated by comparison with Forest Service information gathering models. Gross annual benefits are estimated to be $5.9 million for the MSS system and $7.2 million for the TM system.