Economic aspects of the demand for commercial Forest land in the state of Acre, Brazil

Abstract

The question is the potential for sustainable forest practice for the state of Acre in Brazil's western Amazon. This paper uses a von Thunen-like approach together with local market data to examine commercial logging and mill opportunity for distances around Acre's mill and municipality center. It concludes that under recent and current conditions the harvesting of the mature forest at the frontier can continue sustainably while the majority of the natural forest surrounding Acre will remain beyond the reach of commercial forest harvest. Moreover, as harvests at the frontier may eventually extend to their financially limiting distance, sustainably managed operations closer to the mill will begin replacing the harvest operations of mature natural timber at the logging frontier. These latter can successfully support the local mills on a smaller area over a 30-year forest management cycle.