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Forest Management in an Urbanizing Landscape

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  • Maria A. Cunha-e-Sa
  • Sofia F. Franco
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    Abstract

    This paper aims at building a theoretical framework to examine the impact of development pressure on private owner’s forest management practices, namely, on regeneration and conversion cut dates. As the rent for developed land is rising over time, our model creates the possibility of switching from forestry to residential use at some point in the future, thus departing from the Faustmann’s traditional setup. Comparative statics results with respect to stumpage prices, regeneration costs and urban growth parameters are provided. The results obtained depend on the impact on the opportunity cost of holding the stand and the impact on the opportunity cost of holding the land, generalizing Faustmann’s unambiguous results. JEL codes: Q23, R11, R14

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    File URL: http://fesrvsd.fe.unl.pt/WPFEUNL/WP2013/Wp580.pdf
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    Bibliographic Info

    Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp580.

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    Length: 30 pages
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:unl:unlfep:wp580

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    Related research

    Keywords: urban growth; increasing residential rents; forest management practices;

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    1. K. E. McConnell & J. N. Daberkow & I. W. Hardie, 1983. "Planning Timber Production with Evolving Prices and Costs," Land Economics, University of Wisconsin Press, vol. 59(3), pages 292-299.
    2. Glen W. Armstrong & William E. Phillips, 1989. "The Optimal Timing of Land Use Changes From Forestry to Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 37(1), pages 125-134, 03.
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