ECONOMIC ANALYSIS

Economic Decision Making

Executive Summary3

Part 1Background4

Part 2 Government Policy7

a) Tariffs7

Subsidies9

Part 3 Market Trends12

c) Forecast14

Part 4 Structural Modeling14

a)Demand function14

Part 5 Future Industry Prospects16

Question 119

Government Policy20

Market Trend21

Structural Modeling21

References23

Executive Summary

The Tasmania forest industry was one of the prime industries of that region and up till the last decade, it has performed exceptionally well. The employment that it provides is pretty decent and there is considerable amount of workforce that is accommodated in that sector. But off late there have been many issues that are confronted by this industry and there has been lack of effective planning as far as Tasmanian Forest Industry is concerned. There is a need for better planning and there is need for better thinking as far as revival of the forest industry is concerned.

Economic Decision Making

Part 1Background

Tasmania is the extraordinary land that has been surrounded by some of the best suburbs of the world and many people hoped that it will turn out to be one of the more influentialstructures around (Stone, 1998, p.32). The remoteness and the overall isolation from the conventional agreement has been much often the subject of much debate and it ash been center of attention for the tourist around the world for some time. The forest industry in Tasmania has evolved into an industry and it is providing much needed revenue to the AustralianGovernment. Thought the industry has been performing satisfactorily for some time, it can be said that it has been much neglected and there is need for much scope for improvement as far as the forest industry is concerned.

If one looks at the development of the Tasmanian forest industry, it can be said that it has been around for some time and it has developed into a full-fledged industry with the passage of time. If one looks at the history of Tasmanian forest industry, it can be said that 19th century was the first time one saw forest industry taking some form of shape. Initially it was being controlled under the title of Act of Waste Lands and some people argue that it has some curiosity as far as its title is concerned. Subsequently after the Imperial Government Act that was initiated in 1842 that made sure that Van Diemen's Land was in the position to make sure that some sort of sale, purchase and removal of the wood and timber from the suburbs of these lands was made possible.

On the other hand, Waste Land Act that was brought into place in 1863 allowed for further licensing as far as forest activities are concerned. It has to be kept in mind that all these activities really started happening after the Van Dieman's Land had turned in Tasmania.

Waste Lands Act 1881 made it possible that it was possible for the land to be preserved in 1881. One of the more significant developments that took place in 1885 was that preservation and policing were not permitted in some of the well-organized (Stone, 1998, ...