 Optimal rotation with differently-discounted benefit streamsColin Price Journal of Forest Economics, 2017, vol. 26, issue C, 1-8 Abstract: The case is often now made that discount rates should decline with time. Underlying reasons include that some kinds benefit (or cost) might be discounted at a lower rate than that used for others: in particular, that rates for carbon values and environmental amenities might be less than that for timber. A lengthening sequence of rotations then arises, whether the benefits are consumptive ones realised at the rotation end, or non-consumptive ones whose annual value increases through the rotation. A timber discount rate lower than that for non-consumptive benefits leads to a shortening sequence of rotations. The results differ importantly from those of discounting all benefits and costs at a reducing rate through time. Keywords: Differential discount rates; Optimal rotation; Terminal values; Non-consumptive values (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:foreco:v:26:y:2017:i:c:p:1-8 Ordering information: This journal article can be ordered from DOI: 10.1016/j.jfe.2016.10.001 Access Statistics for this article Journal of Forest Economics is currently edited by P. Gong and R. Brännlund More articles in Journal of Forest Economics from Elsevier |
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