Forestry economic rents in Alberta: Efficient and equitable treatment

Several major issues were examined. The first was an examination of the forest economic rents generated by the Alberta primary forest industry from 1979 to 1990. Two methods were used: (a) a residual valuation approach; and (b) a value added approach.;There are rent collection and timber pricing policies available that could be adopted which would be more sensitive to the dynamics of forest product markets and which would ensure rent collection by the Alberta government is maximized. The current tenure and tax systems lend themselves to the adoption of two-tier rent collection system. (Abstract shortened by UMI.).;The second issue examined was the success of the Alberta government in collecting forest economic rents during the study period 1979 to 1990. The government collected between 42 percent and 54 percent of total available rents through stumpage fees, corporate income taxes, and other forestry changes. The provincial government could have ensured greater economic rent collection control through more stringent and equitable stumpage pricing.