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    ABSTRACT

New Zealand Journal of Forestry (1979) 24(2): 261–277
©New Zealand Institute of Forestry

Research article
Optimal pricing policy and indigenous forest management in New Zealand

I.G. Bertram and M. O'Brien



This paper arises from recent discussion of the extent to which changes in the price system applying to New Zealand native timbers might lead to better utilisation of native forest resources. The main conclusions are that indigenous forestry is a sector in which market failure is generally recognised to be inevitable; that government intervention in the past has not been designed to cope with major elements of this market failure; that the main result of past policies has been to bias prices in a direction which encourages over exploitation of the resource; and that although improvements in the present pricing system are urgently necessary (e.g., some form of conservation levy), the general philosophy of government and the Forest Service concerning conservation will be the really crucial factor in determining the future of our native forests.
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