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. , , The Secretary has duly promulgated the required ~ implementing regulations, f'i'\ ".at 36 cm part 2. hereinafter referred to as tHl!llll'l'NFMI\ regulations" ./3 Sec- \J.I tion 219.1 of th~ regulations establishes that the purpose of forest:pTan- ning is to "provide for multiple use and sustained yield of goods and services from the N<ltional Forest System." One of the ch<lracteristics of national forest lands that greatly complicates decisiorunaking is that these lands must be managed for both market and non- market resource outputs. The national forests must be managed for various multiple uses -- some of which are priced and for ~lich revenues are received, some of which can be priced in dollar terms but for which no revenues (or ' revenues representing less than fair market value) are received, and some of which cannot be readily priced in the market sense, or otherwise valued in dollar terms commensurate with priced outputs. Two examples of non-priced benefits are protection of threatened and endangered species and protection 0f down-stream water quali ty. TIle goal of national forest management is to provide a level and mix of multi- ple uses, both priced and non-priced, thut is optimal, now and for the future, to the national welfare. This, of necessity, involves subjective judgments about the relative v<liue of various specific priced and non-priced objectives and outputs, as well as the value of responding to various issues raised by the public during the p1<lnning process. It is through the planning process that altern<ltives providing various mixes of priced and non-priced objectives and responses to expressed public issues are analyzed and eV<llu<lted and deci- sions u1tim<ltely made as to how these lands are to be managed. A further cOlryplicating factor results from the fact that many Federal r-esource investments produce joint outputs -- some of ~lich are priced and Some non- priced. A rO<ld investment may produce timber outputs, may be used for a wide range of recreational activities, and can reduce the cost of pr-otection from fir-e or insects. A timber sale may be designed to <lchieve h<lbitat objectives which increase opportunities for both consumptive and non-consumptive wildlife uses. The cost of a national forest timber sale is often increased and/or the revenues generated from that sale are reduced Ivhen non-timber multiple use objectives are achievecJ through the timber program. Yet the timber program may be the n~st cost effective way to achieve such multiple use objectives. It is difficult, and in many"cases impossible, to allocate many timber sale costs in <l non-arbitrary manner among the various multiple-use functions, such' as timber, recreation, watershed management, and protection. Any analysis, however, ..can and should attempt to identify and account for the full estimated value of the joint benefits produced by such investments. Even after this accounting is completed, however, there will be both values and costs and responses to public issues that are not easily quantifiable or measurable in dollar terms but \.,hich nonetheless must be considered in decisionmaking. THE now OF"ECONOMICS IN NATIONAL FOREST DECISIONMAKING Appl icable, law, pol icy, and just plain common sense dictate that the Forest Service should manage its resource programs in an economically efficient man- ner, consistent with its legal mandate for multiple use, sustained yield and the a,chievement of the maximum net public benefits. The use of rigorous anal- ysis, including economic effli'~ij,ency and1ysis, is required by the regulations . a",1 '1uidelines developed, to Implement the National Forest Management Act of , jy ~~'f - 4 - "" ..':' ,~....; '-';0- . .. " ...... .~... . ..,..... ~~~..: ".'. . .~. .