IDEAS home Printed from https://ideas.repec.org/a/eee/foreco/v30y2018icp32-37.html
   My bibliography  Save this article

On Pressler’s indicator rate formula under the generalized Reed model

Author

Listed:
  • Susaeta, Andres

Abstract

We extend the Pressler’s indicator rate formula under the generalized Reed model to account for the impacts of current and future stochastic disturbance risk on the current harvesting decision. We prove that that the mathematical framework of the Pressler’s indicator rate holds under the generalized Reed model. We apply it to the management of longleaf pine to determine the optimal harvest age under the risk of wildfires. We determine that the Pressler’s indicator rate formula provides a useful framework to determine the minimum timber salvage increment required to decide when to harvest longleaf pine under the risk of wildfire.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:foreco:v:30:y:2018:i:c:p:32-37
    DOI: 10.1016/j.jfe.2017.12.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1104689917301472
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfe.2017.12.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gregory S. Amacher & Markku Ollikainen & Erkki A. Koskela, 2009. "Economics of Forest Resources," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012480, April.
    2. 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.
    3. Loisel, Patrice, 2014. "Impact of storm risk on Faustmann rotation," Forest Policy and Economics, Elsevier, vol. 38(C), pages 191-198.
    4. Staupendahl, Kai & Möhring, Bernhard, 2011. "Integrating natural risks into silvicultural decision models: A survival function approach," Forest Policy and Economics, Elsevier, vol. 13(6), pages 496-502, July.
    5. Luis Diaz-Balteiro & David Martell & Carlos Romero & Andrés Weintraub, 2014. "The optimal rotation of a flammable forest stand when both carbon sequestration and timber are valued: a multi-criteria approach," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(2), pages 375-387, June.
    6. Gong, Peichen & Löfgren, Karl-Gustaf, 2010. "Did Pressler fully understand how to use the indicator per cent?," Journal of Forest Economics, Elsevier, vol. 16(3), pages 195-203, August.
    7. Susaeta, Andres & Carter, Douglas R. & Chang, Sun Joseph & Adams, Damian C., 2016. "A generalized Reed model with application to wildfire risk in even-aged Southern United States pine plantations," Forest Policy and Economics, Elsevier, vol. 67(C), pages 60-69.
    8. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
    9. Reed, William J., 1984. "The effects of the risk of fire on the optimal rotation of a forest," Journal of Environmental Economics and Management, Elsevier, vol. 11(2), pages 180-190, June.
    10. 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.
    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


    Cited by:

    1. Chang, Sun Joseph, 2020. "Twenty one years after the publication of the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 118(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petucco, Claudio & Andrés-Domenech, Pablo, 2018. "Land expectation value and optimal rotation age of maritime pine plantations under multiple risks," Journal of Forest Economics, Elsevier, vol. 30(C), pages 58-70.
    2. 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.
    3. Loisel, Patrice, 2020. "Under the risk of destructive event, are there differences between timber income based and carbon sequestration based silviculture?," Forest Policy and Economics, Elsevier, vol. 120(C).
    4. Rakotoarison, Hanitra & Loisel, Patrice, 2016. "The Faustmann model under storm risk and price uncertainty: A case study of European beech in Northwestern France," MPRA Paper 85114, University Library of Munich, Germany.
    5. Wang, Yuhan & Lewis, David J., 2024. "Wildfires and climate change have lowered the economic value of western U.S. forests by altering risk expectations," Journal of Environmental Economics and Management, Elsevier, vol. 123(C).
    6. L. Ferreira & M. Constantino & J. Borges, 2014. "A stochastic approach to optimize Maritime pine (Pinus pinaster Ait.) stand management scheduling under fire risk. An application in Portugal," Annals of Operations Research, Springer, vol. 219(1), pages 359-377, August.
    7. Ning, Zhuo & Sun, Changyou, 2017. "Forest management with wildfire risk, prescribed burning and diverse carbon policies," Forest Policy and Economics, Elsevier, vol. 75(C), pages 95-102.
    8. 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).
    9. Susaeta, Andres & Carney, Tyler, 2023. "Optimal regimes of prescribed burning in forest plantations in the presence of risk of wildfires in the southeastern United States," Forest Policy and Economics, Elsevier, vol. 151(C).
    10. Halbritter, Andreas & Deegen, Peter & Susaeta, Andres, 2020. "An economic analysis of thinnings and rotation lengths in the presence of natural risks in even-aged forest stands," Forest Policy and Economics, Elsevier, vol. 118(C).
    11. Macpherson, Morag F. & Kleczkowski, Adam & Healey, John R. & Hanley, Nick, 2017. "Payment for multiple forest benefits alters the effect of tree disease on optimal forest rotation length," Ecological Economics, Elsevier, vol. 134(C), pages 82-94.
    12. Labbé, Rodrigo & Niklitschek, Mario & Contreras, Marco, 2023. "Effect of climate change on the land rent of radiata pine plantations in Chile: Site productivity and forest fires," Forest Policy and Economics, Elsevier, vol. 156(C).
    13. Susaeta, Andres & Carter, Douglas R. & Chang, Sun Joseph & Adams, Damian C., 2016. "A generalized Reed model with application to wildfire risk in even-aged Southern United States pine plantations," Forest Policy and Economics, Elsevier, vol. 67(C), pages 60-69.
    14. Patto, João V. & Rosa, Renato, 2022. "Adapting to frequent fires: Optimal forest management revisited," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    15. Barreal, Jesús & Loureiro, Maria L. & Picos, Juan, 2014. "On insurance as a tool for securing forest restoration after wildfires," Forest Policy and Economics, Elsevier, vol. 42(C), pages 15-23.
    16. J. Garcia-Gonzalo & T. Pukkala & J. Borges, 2014. "Integrating fire risk in stand management scheduling. An application to Maritime pine stands in Portugal," Annals of Operations Research, Springer, vol. 219(1), pages 379-395, August.
    17. Couture, Stéphane & Reynaud, Arnaud, 2011. "Forest management under fire risk when forest carbon sequestration has value," Ecological Economics, Elsevier, vol. 70(11), pages 2002-2011, September.
    18. Al Abri, Ibtisam H. & Grogan, Kelly A. & Daigneault, Adam, 2017. "Optimal Forest Fire Management with Applications to Florida," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258568, Agricultural and Applied Economics Association.
    19. Sohngen, Brent & Tian, Xiaohui, 2016. "Global climate change impacts on forests and markets," Forest Policy and Economics, Elsevier, vol. 72(C), pages 18-26.
    20. Morag F. Macpherson & Adam Kleczkowski & John Healey & Nick Hanley, 2015. "When to harvest? The effect of disease on optimal forest rotation," Discussion Papers in Environment and Development Economics 2015-19, University of St. Andrews, School of Geography and Sustainable Development.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:foreco:v:30:y:2018:i:c:p:32-37. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/701775/description#description .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.