IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02806006.html
   My bibliography  Save this paper

Impact of storm risk on Faustmann rotation

Author

Listed:
  • Patrice Loisel

    (MISTEA - Mathématiques, Informatique et STatistique pour l'Environnement et l'Agronomie - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

Global warming may induce in Western Europe an increase in storms. Hence the forest managers will have to take into account the risk increase. We study the impact of storm risk at the stand level. From the analytical expressions of the Faustmann criterion and the Expected Long-Run Average Yield, we deduce in presence of storm risk the influence of criteria and of discount rate in terms of optimal thinnings and cutting age. We discuss the validity of using a risk adjusted discount rate (a rate of storm risk added to the discount rate) without risk to mimic the storm risk case in terms of optimal thinnings.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Patrice Loisel, 2012. "Impact of storm risk on Faustmann rotation," Post-Print hal-02806006, HAL.
    • Handle: RePEc:hal:journl:hal-02806006
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marc Hanewinkel & Dominik A. Cullmann & Mart-Jan Schelhaas & Gert-Jan Nabuurs & Niklaus E. Zimmermann, 2013. "Climate change may cause severe loss in the economic value of European forest land," Nature Climate Change, Nature, vol. 3(3), pages 203-207, March.
    2. Price, Colin, 2011. "When and to what extent do risk premia work? Cases of threat and optimal rotation," Journal of Forest Economics, Elsevier, vol. 17(1), pages 53-66, January.
    3. Patrice, Loisel, 2011. "Faustmann rotation and population dynamics in the presence of a risk of destructive events," Journal of Forest Economics, Elsevier, vol. 17(3), pages 235-247, August.
    4. 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.
    5. 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.
    6. Holecy, Jan & Hanewinkel, Marc, 2006. "A forest management risk insurance model and its application to coniferous stands in southwest Germany," Forest Policy and Economics, Elsevier, vol. 8(2), pages 161-174, March.
    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. 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.
    2. Patrice Loisel & Marielle Brunette & Stéphane Couture, 2020. "Insurance and Forest Rotation Decisions Under Storm Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 347-367, July.
    3. Sauter, Philipp & Mußhoff, Oliver, 2015. "Forestry harvesting decisions in contrast to theory? Evidence from an economic experiment," 2015 Conference (59th), February 10-13, 2015, Rotorua, New Zealand 202579, Australian Agricultural and Resource Economics Society.
    4. Couture, Stéphane & Cros, Marie-Josée & Sabbadin, Régis, 2016. "Risk aversion and optimal management of an uneven-aged forest under risk of windthrow: A Markov decision process approach," Journal of Forest Economics, Elsevier, vol. 25(C), pages 94-114.
    5. Patrice Loisel & Guillerme Duvillié & Denis Barbeau & Brigitte Charnomordic, 2019. "EvaSylv: A user-friendly software to evaluate forestry scenarii including natural risk," Working Papers hal-02282504, HAL.
    6. Patrice Loisel & Marielle Brunette & Stéphane Couture, 2022. "Ambiguity, value of information and forest rotation decision under storm risk," Working Papers of BETA 2022-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. 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.
    8. 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).
    9. Stanturf, John A. & Young, Timothy M. & Perdue, James H. & Dougherty, Derek & Pigott, Michael & Guo, Zhimei & Huang, Xia, 2018. "Productivity and profitability potential for non-native Eucalyptus plantings in the southern USA," Forest Policy and Economics, Elsevier, vol. 97(C), pages 210-222.
    10. 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.
    11. 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.
    12. Müller, Fabian & Hanewinkel, Marc, 2018. "Challenging the assumptions of a standard model: How historical triggers in terms of technical innovations, labor costs and timber price change the land expectation value," Forest Policy and Economics, Elsevier, vol. 95(C), pages 46-56.

    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. Patrice Loisel & Marielle Brunette & Stéphane Couture, 2020. "Insurance and Forest Rotation Decisions Under Storm Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 347-367, July.
    2. 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).
    3. 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.
    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. 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.
    6. Morag F. Macpherson & Adam Kleczkowski & John R. Healey & Nick Hanley, 2018. "The Effects of Disease on Optimal Forest Rotation: A Generalisable Analytical Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 565-588, July.
    7. Félix Bastit & Marielle Brunette & Claire Montagne-Huck, 2021. "Earth, wind and fire: A multi-hazard risk review for natural disturbances in forests," Working Papers of BETA 2021-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. McTaggart, Ewan & Megiddo, Itamar & Kleczkowski, Adam, 2023. "The effect of pests and pathogens on forest harvesting regimes: A bioeconomic model," Ecological Economics, Elsevier, vol. 209(C).
    9. 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.
    10. Sohngen, Brent & Tian, Xiaohui, 2016. "Global climate change impacts on forests and markets," Forest Policy and Economics, Elsevier, vol. 72(C), pages 18-26.
    11. Brunette, M. & Holecy, J. & Sedliak, M. & Tucek, J. & Hanewinkel, M., 2015. "An actuarial model of forest insurance against multiple natural hazards in fir (Abies Alba Mill.) stands in Slovakia," Forest Policy and Economics, Elsevier, vol. 55(C), pages 46-57.
    12. Thomas, J. & Brunette, M. & Leblois, A., 2022. "The determinants of adapting forest management practices to climate change: Lessons from a survey of French private forest owners," Forest Policy and Economics, Elsevier, vol. 135(C).
    13. 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.
    14. Härtl, Fabian & Knoke, Thomas, 2014. "The influence of the oil price on timber supply," Forest Policy and Economics, Elsevier, vol. 39(C), pages 32-42.
    15. Bastit, Félix & Brunette, Marielle & Montagné-Huck, Claire, 2023. "Pests, wind and fire: A multi-hazard risk review for natural disturbances in forests," Ecological Economics, Elsevier, vol. 205(C).
    16. Knoke, Thomas & Gosling, Elizabeth & Thom, Dominik & Chreptun, Claudia & Rammig, Anja & Seidl, Rupert, 2021. "Economic losses from natural disturbances in Norway spruce forests – A quantification using Monte-Carlo simulations," Ecological Economics, Elsevier, vol. 185(C).
    17. Patrice Loisel & Guillerme Duvilli'e & Denis Barbeau & Brigitte Charnomordic, 2019. "EvaSylv: A user-friendly software to evaluate forestry scenarii including natural risk," Papers 1909.07288, arXiv.org.
    18. 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).
    19. 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.
    20. Félix Bastit & David W. Shanafelt & Marielle Brunette, 2023. "Stability and resilience of a forest bio-economic equilibrium under natural disturbances," Working Papers of BETA 2023-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    More about this item

    Statistics

    Access and download statistics

    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:hal:journl:hal-02806006. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.