Sensitivity analysis indicates that the net present value is sensitive
to changes in biomass production and the social discount rate. Two
important implications can be drawn from this result. First, appropriate
forest management schemes have to be adopted in order to enjoy the
maximumattainable biomass products fromexclosures. If good management
schemes are in place converting even semi-productive lands to
exclosures increases efficiency in land resource allocation. Second, factors
that affect local people's time preference, such as credit constraints,
must be addressed in order to induce people to discount the future at
lower rate.