The Optimal Selective Logging Regime and the Faustmann Formula
This study analyzes the optimal selective logging regime of a size-distributed forest where individual trees compete for scarce resources such as space, light, and nutrients. The decision problem of the forest manager is formulated as a distributed optimal control problem. The interpretation of the first-order conditions allows a generalization of the Faustmann formula. In an empirical part, this article numerically determines the optimal management regime of a size-structured forest and shows that the optimal selective logging regime is associated with a normal forest under a wider variety of situations than stated in the previous literature.
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