The Opportunity Cost of Reduced Timber Harvests Resulting from Coal Mine Development: A Case Study

Abstract

This paper presents a methodology for determining the opportunity cost of a temporary removal of forested land from timber production. The value of forested land in a jurisdiction requiring sustained timber yield is the net value of the contribution of that land to the annual allowable cut. This methodology is used in a case study in west central Alberta to determine the opportunity cost of the removal of land from timber production to allow for coal extraction.