SQUIRRELL

Dr Felmingham’s report doesn’t actually estimate a marginal benefit coefficient as suggested above … Working on the average rather than the margin generates a rather useless figure. It doesn’t allow for the fact that if there were no subsidy there would still be economic activity … Whilst Dr Felmingham has qualified this, using the term ‘Bang for buck’ implies that each $1 of subsidy directed towards forestry returns (or provides ‘bang’) of $56. Clearly, this is false. Comment here