FOR303H1 Lecture : Lecture 2: Forest Ownership: Forests as Capital
Document Summary
Heather owns a bike, but more like a bundle-of-sticks, ex. Heather as the right to pedal, steer, inflate the tires, & brake this bike allows nuance in describing ownership systems, es. Indonesia, this has led to widespread recent indigenous/community legal reforms corruption: australia (1996): returned some ownership rights back to abs. ppl, brazil (1988): constitution recog. ancestral rights of indigenous ppls on trad. occupied land. Rate of return: o r = (vn/vo)1/n - 1. Net present value: present value of revenues minus the present value of costs: npv = ro + (r1/(1+r)1) + (r2/(1+r)2) + + (rn/(1+r)n) - co - (c1/(1+r)1) - (c2/(1+r)2 - - (cn/(1+r)n) Perpetual annual series: a payment is made every yr, forever: vo = p/r. Perpetual periodic series: a payment is not made every yr, but occurs forever: vo = p/[(1+r)t - 1] Terminating annual series: annual payments, but for a limited amount of time: vo = p[ (1-(1+r)-n)/r]