 Faustmann’s Forest Harvest RotationChapter Chapter 4 in The Economics of Optimal Growth Pathways, 2023, pp 83-111 from Springer Abstract: Abstract Forests are one of the most cherished resources of the planet. How should an owner of a forest stand manage it over time? A profit-maximizing owner will choose the forest rotation that maximizes the sum of discounted net revenues generated from the forest stand over the course of its life. Faustmann showed that the forest rotation determined in this way is superior to the other forest rotations that had and have been practiced widely by foresters. The forester’s rotations are rooted on the biology of forest growth, which includes a maximum gross yield rotation as well as a maximum sustainable yield rotation. At the Faustmann rotation, the value of waiting for one more period to cut the trees is equated to the cost of waiting for one more period. Critics argued that the economically based forest rotation such as Faustmann’s leads to a rapid deforestation, which this chapter critically examines with a focus on the current health of the forest resources of the planet. Keywords: Forest harvest; Faustmann rotation; Forester’s rotation; Forest growth function; Discounting; Maximum sustainable yield rotation; Deforestation (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-20754-9_4 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-20754-9_4 Access Statistics for this chapter More chapters in Springer Books from Springer |
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