4.Are privately owned or publicly owned forests likely to result in the Most efficient management of...

4.Are privately owned or publicly owned forests likely to result in the Most efficient management of forest resources?

5. Describe what is meant by the “portfolio choice” approach to managing renewable resource stocks like forests.

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Expert Solution

4.Publicly owned forests likely to result in the most efficient management of forest resources, this is because government manages natural resources in the best way as they don't just use it for commercial purpose but if owned by private sector they only will use it to earn maximum profit.

Government makes sustainable use of the natural resources like forest but private sector just thinks for the present profit but it may cause great loss in the future.

5.Portfolio choice approach to managing renewal resources like forests is similar to portfolio financial management which is done to reduce risk and make the best use of the resources, similarly portfolio choice for managing renewable resources means the diversification of renewable natural resources like the management of different resources by different authorities and using different natural resources in different combination for the purpose of development activities.

Forests available in different states must be controlled by the local government of that state so that no large quantity of resource is available in single hand so the use of this resources will be in a good way and there is less risk of large scale loss of this natural resources i.e. risk is reduced.

Rahul Sunny answered 1 year ago

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