Timber production and streamflow benefits: a contrary analysis of options

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Abstract
This paper draws on the theoretical model developed by Clarke (1994) and the parent publications by Read et al. (1992) and Read et al. (1994) to simplify and correct some of the data concerning the Thomson Catchment, especially the price of water, and to simplify and clarify the analysis of policy options involved in joint timber and water production. Contrary to Clarke's (1994) analyses, the results indicate that harvesting of the 1939 regrowth mountain ash on the Thomson Catchment is justified at least to 2019. Timber production can probably be extended beyond that date if appropriate thinning of young stands can be developed to reduce water losses in subsequent rotations. Further research will be needed to confirm the most appropriate thinning and the magnitude of the effects of thinning.

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