Wood Industry: Why Government Investment Term Paper

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To preserve the forests, however, government intervention and regulation are necessary. Industry does not have the vested interest or the financial resources to research scientific tree farming, because the profits from such research will be a long time in coming.

Thompson's analysis makes economic as well as environmental sense. In the case of some products, like natural resources, private enterprise cannot be expected to take a long-term view and make long-term investments in researching scientific conservation, because commercial industry must show a short-term a profit for the company's owners.

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The profits from forestry improvement may only be realized after several generations. However, it is still critical that such improvements occur, thus this is an ideal example of when government intervention is required to help the environment and to preserve the future of an industry.

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