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Forest management under fire risk when forest carbon sequestration has value

  • Couture, Stéphane
  • Reynaud, Arnaud

We develop a multiple forest use model to determine the optimal harvest date for a forest stand producing both timber and carbon benefits under a risk of fire. An empirical application is provided for a forest owner producing maritime pine in Southwest of France. Our results indicate that a higher risk of fire will decrease the optimal rotation period. On the contrary, higher carbon prices increase the optimal harvesting age. To investigate the contradictory effects of fire risk and carbon price on forest rotation, we identify the set of carbon prices and fire risks that lead to a given rotation age. We also show that forest owner's willingness to pay for a risk reduction can be substantial (37.33Â euros by ha and by year to reduce the annual fire risk from 1.26% to 0.07%).

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 70 (2011)
Issue (Month): 11 (September)
Pages: 2002-2011

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Handle: RePEc:eee:ecolec:v:70:y:2011:i:11:p:2002-2011
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  17. Gong, Peichen & Löfgren, Karl-Gustaf, 2005. "Impact of Risk Aversion on Optimal Rotation Age," Umeå Economic Studies 666, Umeå University, Department of Economics.
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  21. Seppo Salo & Olli Tahvonen, 2004. "Renewable Resources with Endogenous Age Classes and Allocation of Land," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 513-530.
  22. Tahvonen, Olli & Salo, Seppo, 1999. "Optimal Forest Rotation within SituPreferences," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 106-128, January.
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