A Ricardian Model of Forestry

Silvia Faggian and Giuseppe Freni

No 2015:12, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper provides a continuous-time �Ricardian� model of forestry, where, in response to an increase in timber demand, forest cultivation is progressively intensified on the most fertile lands and/or extended to less fertile qualities of lands. It is shown that, at a given level of the rate of interest, a set of �break-through timber prices� gives the order of fertility (i.e., the order in which the different qualities of land are taken into cultivation) and that, for each land, prices of standing trees are positive above a �threshold timber price�. Since, for each land, the break-through price is higher than the threshold price, Ricardo is shown to be right: a higher demand for timber could simply raise those components of the landlord compensation which are not rent.

Keywords: Vintage Capital; Ricardian extensive rent theory; Harvesting problems; Forest Management (search for similar items in EconPapers)
JEL-codes: C61 C62 D90 E22 Q23 (search for similar items in EconPapers)
Pages: 21
Date: 2015, Revised 2015
New Economics Papers: this item is included in nep-agr, nep-env and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.unive.it/web/fileadmin/user_upload/dip ... gian_freni_12_15.pdf First version, anno (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2015:12

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC.
Bibliographic data for series maintained by Sassano Sonia (wp.dse@unive.it).