Abstract
This paper discusses public subsidies aimed at intensifying timber production as an initial part of an evaluation of the profitability of forest investment subsidies in Finland. In many countries there are very few proper ex post evaluations of the forest policy instruments in economic terms. The scarcity of timber among users and their attempts to construct new forest policy are discussed first. The increments in annual growth and growing stock as well as its valuation are then evaluated. The final gross utility increments due to forestry investments are measured through their importance in the forest industry products. The direct and indirect changes in GDP are calculated by using the input-output method.
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