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Pressler's indicator rate formula as a guide for forest management

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  • Chang, Sun Joseph
  • Deegen, Peter

Abstract

In this paper, it is shown that Pressler's indicator rate formula is also the optimal condition for the determination of the optimal harvest age under the generalized Faustmann formula. In addition, a modern treatment of the quantity increment, quality increment, and price increment is presented. Pressler's indicator rate formula is then applied to determine the optimal harvest age in a dynamic world of unanticipated changes.

Suggested Citation

  • Chang, Sun Joseph & Deegen, Peter, 2011. "Pressler's indicator rate formula as a guide for forest management," Journal of Forest Economics, Elsevier, vol. 17(3), pages 258-266, August.
    • Handle: RePEc:eee:foreco:v:17:y:2011:i:3:p:258-266
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    References listed on IDEAS

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    1. Gong, Peichen & Löfgren, Karl Gustaf, 2007. "Market and welfare implications of the reservation price strategy for forest harvest decisions," Journal of Forest Economics, Elsevier, vol. 13(4), pages 217-243, November.
    2. Samuelson, Paul A, 1976. "Economics of Forestry in an Evolving Society," Economic Inquiry, Western Economic Association International, vol. 14(4), pages 466-492, December.
    3. Chang, Sun Joseph & Gadow, Klaus V., 2010. "Application of the generalized Faustmann model to uneven-aged forest management," Journal of Forest Economics, Elsevier, vol. 16(4), pages 313-325, December.
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    Cited by:

    1. Petri P. Kärenlampi, 2018. "Stationary Forestry with Human Interference," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    2. Susaeta, Andres, 2018. "On Pressler’s indicator rate formula under the generalized Reed model," Journal of Forest Economics, Elsevier, vol. 30(C), pages 32-37.
    3. Deegen Peter, 2013. "Die Stellung der Tharandter Theorien der forstlichen Nachhaltigkeit in Hayeks Klassifikation der Formen menschlicher Ordnung / The relation among the Tharandt-based theories of forest sustainability a," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 64(1), pages 79-98, January.
    4. Koster, Roman & Fuchs, Jasper M., 2022. "Opportunity costs of growing space – an essential driver of economical single-tree harvest decisions," Forest Policy and Economics, Elsevier, vol. 135(C).
    5. Sauter, Philipp A. & Mußhoff, Oliver & Möhring, Bernhard & Wilhelm, Stefan, 2016. "Faustmann vs. real options theory – An experimental investigation of foresters’ harvesting decisions," Journal of Forest Economics, Elsevier, vol. 24(C), pages 1-20.
    6. Deegen, Peter & Matolepszy, Kai, 2015. "Economic balancing of forest management under storm risk, the case of the Ore Mountains (Germany)," Journal of Forest Economics, Elsevier, vol. 21(1), pages 1-13.

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