Exam 1 Flashcards by Kyle Crawford

The illusion vs the reality

Illusion: Public natural resource police determine how resources are used
Reality: Mega-forces determine the use of resources and government policy

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Petersham between 1773–1791

1771: 10% cleared land
1791: 15% clear land
Road system: initially 2 roads then a few more

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Petersham between 1791-1859

1830: 77% clear land
1850:90% clear land
Road system: very extensive and intricate

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Petersham between 1850-1910

Cleared land: <50% (abandoned fields)
Road system: Less extensive
Little agriculture

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Why did land have value in 1910

presence of white pine

demand for boxes and barrels

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Petersham between 1910-1960

1910: >50% white pine forests cleared and regrown
1960: Mostly hardwood forest
Road system went from abandoned to stabilized

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What does Petersham look like now

Nearly completely forested

Extensive road system

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Burnsteins hypothesis (4 things) for growth in the world GDP after 1820

1) Property rights
2) scientific rationalism
3) Credit markets
4) improvements in communications and transportations

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What caused changes to Petersham land?

Human perception of the lands value. Due to changes in: transportation improvements/industrial revolution/improvements in credit

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Historical territorial limitations

Canon shot rule

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Territorial Sea limitations

12 Nm. 3 or 9 state Nm control

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Exclusive economic zone

200 Nms

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ITQs

Individual Transferable Quotas. 
"market creation" policy tool 
Transferable 
set limits on total allowable catch 
allocated to individuals (usually vessel owners)

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1976 Magnuson-Stevens Fishery Conservation Act

Protect national fisheries established by “Law of the Sea” treaty

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Who was NY’s largest private landowner in 2005

International Paper (300,000+ acres)

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Conservation Easement (CE)

legal agreement between a landowner and a land trust or government agency that limits use of land to protect one or more conservation values

Who is NY’s largest private landowner

Lyme Timber Company (LTC)

Purchased 275,000 acres from IP for $137 million

TIMO

Timberland Management Organizations

REIT

Real Estate Investment Trusts

What is a TIMO

partnerships, or other “tax pass through” organizations

TIMO owners are investors that invest through TIMO in timberlands

Whats a REIT

Tax designation for a corporation investing solely in real estate.
Invest in all types of properties

VIFPC

Vertically integrated forest products companies.

responsible for shift from timber companies to TIMOs and REITs.

How do TIMOs and REITs make money

Capital appreciation and then sale of the lands

Profits from timber sale, hunting leases, etc

Why was there a shift from timber companies to TIMOs and REITs

Performance issues with VIFPCs
VIFPCs had to repay debt
Development of more efficient tax structures for owning forestland

1974 Federal Employee Retirement Income Security Act

Required diversification of assets in federal employees portfolios

1986 Tax Reform Act

Lowered taxes for individuals, partnerships, TIMOs, pensions, REITs

Why do investors/pensions invest in TIMOs and REITs

Good returns, low viability, low correlation with other types of stocks

1926 Wildfire prevention procedure

10-acre rule

1935 wildfire prevention procedure

10;00am policy

1944 wildfire prevention procedure

smoky the bear | Based on a concern that Japan would set fire to American forest

1970 wildfire prevention procedure

let it burn policy

1995 wildfire prevention policy

fire management policy and program review

Human costs due to wildfires

lives lost/home destroyed decreased municipal taxes decreased tourism increased insurance payouts

Wildlife costs due to wildfires

vegetation and soil loses water pollution via erosion Increased runoff -> flooding Wildlife habitat changes

Environmental costs due to wildfires

Air pollution | GHG emissions

what is a policy?

a course of action adopted by entity

what is a public policy?

a course of action adopted by a government | public policies are what a government chooses to do and what not to do

Mega trend

global and sustained circumstances that impact societies, economics, and people

three agriculture policies

Conservation Reserve program Agriculture Conservation Easement Program Environmental Quality Incentive Program