Towards a More General Dynamic Economic Model of the Optimal Rotation of Forests
Document Type
Presentation
Journal/Book Title/Conference
Towards a More General Dynamic Economic Model of the Optimal Rotation of Forests
Publication Date
1986
Abstract
The Faustmann model has played a key role in the determination of optimal forest rotations. Faustmann (1968) introduced a simple and deterministic competitive economic model, the objective of which was to maximize the present value of perpetual returns to the fixed factor of production, a unit of timber land. The optimal rotation problem, as viewed by him, was a timber management problem abstracting from the important multiple use characteristics of today's forest stand. Samuelson (1976) took note of the problem. Hartman (1976), Berck (1981) and Strang (1983) developed a modified Faustmann model where the forest resource stock 'per se' is assumed to have consumptive value in the form of "recreation", a general term used to capture non-timber forest uses (e.g. wildlife habitat, flood control, viewing, and hunting).
Recommended Citation
Bhattacharyya, R.N., and D.L. Snyder. Towards a More General Dynamic Economic Model of the Optimal Rotation of Forests. AAEA/WAEA Annual Meetings, Reno, Nevada, July 28-30, 1986.
Comments
Presentation at the AAEA/WAEA Annual Meetings, Reno, Nevada