Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Optimal Selective Logging Regime and the Faustmann Formula

Contents:

Author Info

  • Angels Xabadia
  • Renan U. Goetz

Abstract

This study analyzes the optimal selective logging regime of a size-distributed forest where individual trees compete for scarce resources such as space, light, and nutrients. The decision problem of the forest manager is formulated as a distributed optimal control problem. The interpretation of the first-order conditions allows a generalization of the Faustmann formula. In an empirical part, this article numerically determines the optimal management regime of a size-structured forest and shows that the optimal selective logging regime is associated with a normal forest under a wider variety of situations than stated in the previous literature.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://research.barcelonagse.eu/tmp/working_papers/353.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 353.

as in new window
Length:
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:bge:wpaper:353

Contact details of provider:
Postal: Ramon Trias Fargas, 25-27, 08005 Barcelona
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Email:
Web page: http://www.barcelonagse.eu
More information through EDIRC

Related research

Keywords: distributed optimal control; density effects; forest management; Faustmann rule; selective;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Wan, Henry, Jr, 1994. "Revisiting the Mitra-Wan Tree Farm," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 193-98, February.
  2. Ching-Rong Lin & Joseph Buongiorno, 1998. "Tree Diversity, Landscape Diversity, and Economics of Maple-Birch Forests: Implications of Markovian Models," Management Science, INFORMS, INFORMS, vol. 44(10), pages 1351-1366, October.
  3. Olli Tahvonen, 2004. "Optimal Harvesting Of Forest Age Classes: A Survey Of Some Recent Results," Mathematical Population Studies, Taylor & Francis Journals, vol. 11(3-4), pages 205-232.
  4. Gustav Feichtinger & Alexia Prskawetz & Vladimir M. Veliov, 2002. "Age-structured optimal control in population economics," MPIDR Working Papers WP-2002-045, Max Planck Institute for Demographic Research, Rostock, Germany.
  5. Salo, Seppo & Tahvonen, Olli, 2003. "On the economics of forest vintages," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 27(8), pages 1411-1435, June.
  6. Jussi Uusivuori & Jari Kuuluvainen, 2005. "The Harvesting Decisions When a Standing Forest with Multiple Age-Classes Has Value," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(1), pages 61-76.
  7. Mitra, Tapan & Wan, Henry Jr., 1986. "On the faustmann solution to the forest management problem," Journal of Economic Theory, Elsevier, vol. 40(2), pages 229-249, December.
  8. Salo, Seppo & Tahvonen, Olli, 2002. "On Equilibrium Cycles and Normal Forests in Optimal Harvesting of Tree Vintages," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 1-22, July.
  9. Mitra, Tapan & Wan, Henry Y, Jr, 1985. "Some Theoretical Results on the Economics of Forestry," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 52(2), pages 263-82, April.
  10. Scarpa, Riccardo & Hutchinson, W. George & Chilton, Susan M. & Buongiorno, Joseph, 2000. "Importance of forest attributes in the willingness to pay for recreation: a contingent valuation study of Irish forests," Forest Policy and Economics, Elsevier, vol. 1(3-4), pages 315-329, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Renan Ulrich Goetz & Natali Hritonenko & Ruben Mur & Àngels Xabadia & Yuri Yatsenko, 2008. "Climate Change and the Cost of Carbon Sequestration: The Case of Forest Management," Working Papers 329, Barcelona Graduate School of Economics.
  2. Patrice, Loisel, 2011. "Faustmann rotation and population dynamics in the presence of a risk of destructive events," Journal of Forest Economics, Elsevier, Elsevier, vol. 17(3), pages 235-247, August.
  3. Terry Heaps, 2014. "Convergence of Optimal Harvesting Policies to a Normal Forest," Discussion Papers dp14-01, Department of Economics, Simon Fraser University.
  4. Florian Diekert, 2012. "Growth Overfishing: The Race to Fish Extends to the Dimension of Size," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 52(4), pages 549-572, August.
  5. Yu, Jinna & Yao, Shunbo & Zhang, Bisheng, 2014. "Designing afforestation subsidies that account for the benefits of carbon sequestration: A case study using data from China's Loess Plateau," Journal of Forest Economics, Elsevier, Elsevier, vol. 20(1), pages 65-76.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:353. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.