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Forestry 1971 44(1):87-94; doi:10.1093/forestry/44.1.87
© 1971 by Institute of Chartered Foresters
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EDITORIAL

The Effect of Tax Concessions on Social Benefit from Afforestation

COLIN PRICE

Commonwealth Forestry Institute Oxford

Private afforestation has increased considerably since the war as a result of government income-tax and capital gains tax concessions. This type of subsidy has undesirable social effects on wealth distribution, on land and capital allocation, and on commercially optimum management; nor are the social benefits which alone can justify subsidy of afforestation necessarily favoured. The alleged benefits of afforestation in the Yorkshire Dales National Park are open to question, and the effect on amenity is likely to be detrimental. This example is typical of many areas of afforestation. If social benefits are expected to justify public support, a new system of subsidy designed to promote these benefits specifically should be devised. But as our knowledge of social benefit is so limited, it may be preferable to suspend all subsidies for afforestation.


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