Environmental polarization and the use of old-growth forests in the Pacific Northwest

The allocation of some natural resources and environmental amenities ultimately comes, not from orderly market processes, but from chaotic and polarized political and legal conflicts. This has been and continues to be the case with old-growth forests in the Pacific Northwest. This paper explores economic factors associated with environmental polarization as it relates to allocating the remaining old-growth forests in the Pacific Northwest. It is demonstrated that economic factors of environmental polarization include: (1) problems associated with externalities in timber production, (2) differences in environmental ethics regarding old-growth forests, and (3) differences in time preferences. Resolving the debate over old-growth forests will be extremely difficult because it will require a solution that addresses each of these factors.