Question

a) Discuss two reasons why the optimal rotation interval achieved through a private market may differ significantly from the socially optimal rotation

b) explain how An increase in soil erosion on deforested land due to climate change changes affect the Fisher rotation interval and Faustmann rotation interval for trees.

Answer 1

Answer. (B) Climate change will affect land-related ecosystem services (e.g., pollination, resilience to extreme climate events, water yield, soil conservation, carbon storage, etc.) and biodiversity, both directly and indirectly.

*The direct impacts range from subtle reductions or enhancements of specific services, such as biological productivity, resulting from changes in temperature, temperature variability or rainfall, to complete disruption and elimination of services. Disruptions of ecosystem services can occur where climate change causes transitions from one biome to another.

For example, forest to grassland as a result of changes in water balance or natural disturbance regimes.