 Impacts of forest tax under timber price uncertaintyPeichen Gong and Andres Susaeta Forest Policy and Economics, 2020, vol. 111, issue C Abstract: We examine the effect of forest taxes on the optimal harvest decision and the forest land value using an adaptive optimization framework– the stand is harvested when the stumpage price is equal or higher than an age-dependent reservation price. We prove that the site value tax or site productivity tax does not change the optimal reservation prices; the timber value tax reduces the optimal reservation prices; the yield tax increases the optimal reservation prices when the non-timber benefits are increasing with stand age, or when they are independent of the stand age and the regeneration cost is positive; and the unit harvest tax increases the reservation prices when stand age is relatively high and could reduce the reservation price when stand age is low. Numerical results show that the optimal harvest age is only sensitive to the unit and timber value tax. The tax burden is reduced for all types of taxes except the site value tax. Under a taxation budget constraint, recognition of stumpage price uncertainty may change forest owners’ preferences for different types of taxes. Keywords: Adaptive management strategy; Forest taxation; Hartman model; Non-timber benefits; Optimal harvest age; Reservation prices (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:forpol:v:111:y:2020:i:c:s1389934119303880 DOI: 10.1016/j.forpol.2019.102030 Access Statistics for this article Forest Policy and Economics is currently edited by M. Krott More articles in Forest Policy and Economics from Elsevier |
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