The economics of the Sylvo-Cynegetic equilibrium

This work aims at modeling the economics of the sylvo-cynegetic equilibrium in commercial forests, as defined by forestry authorities, with respect to uncertain damages to plantation stands caused by the overabundance of ungulate species. After presenting the stochastic optimal control framework, in which the dynamics of forest resources and the population dynamics of big game species are both considered, we apply the stochastic control to an updated version of the well-known Gordon-Schaefer bioeconomic model. Our results show that the equilibrium can be achieved through the use of a joint control divided between regeneration works and hunting regimes. Furthermore, we find that, in equilibrium, the investment in forestry works ought to be equal to the willingness to undertake the resource stock stabilization in uncertainty. The investment should amount no more than 20% of total costs engaged in a forestry management plan.