The impact of government policies on forest resource utilization is analyzed using two conceptual frameworks. The first focuses on determinants of resource depletion and the rate at which the resource is extracted by economic activity while the second focuses on the impact of government policies on land utilization. There is less than adequate understanding of the linkage between macro policy changes and prices. This paper realizes the importance of evaluating the trade-off between national financing programs that reduce resource depletion directly or indirectly by increasing labor productivity in other areas.
