Impact of storm risk on Faustmann rotation

Patrice Loisel

Forest Policy and Economics, 2014, vol. 38, issue C, 191-198

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.

Keywords: Silviculture; Optimization; Thinnings; Management; Expected value; Cutting age (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1389934113001640
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Impact of storm risk on Faustmann rotation (2014)
Working Paper: Impact of storm risk on Faustmann rotation (2012)
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:eee:forpol:v:38:y:2014:i:c:p:191-198

DOI: 10.1016/j.forpol.2013.08.002

Access Statistics for this article

Forest Policy and Economics is currently edited by M. Krott

More articles in Forest Policy and Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().