A more general dynamic economic model of the optimal rotation of multiple-use forests

Understanding the compatibility of multiple uses on forest land: a survey of multiresource research with application to the Pacific Northwest.

“…Swallow and others (1990) accounted for the potential nonconvexity problems with the Hartman model by finding global optima. Snyder and Bhattacharyya (1990) formulated an alternative to the Hartman model in finding a global optimum solution. Riiters and others (1982) used a dynamic programming model and showed that joint production of timber and forage had a higher soil expectation value than either alone and that different outputs at different stages of the rotation can be most productive.…”

A Bioeconomic Approach to the Faustmann–hartman Model: Ecological Interactions in Managed Forest

“…Uncertainty in the Faustmann model was explored by Reed [1984], who analyzed forest fire risk: Willassen [1998], who included stochastic effects on the forest value growth: and Reed [1993] and Reed and Ye [1994], who explored the option value associated with amenity services in old‐growth forest stand. Following Hartman [1976], the importance of nontimber benefits and the effect of forest‐wide considerations have been addressed by a number of authors (Strang [1983], Paredes and Brodie [1989], Snyder and Bhattacharya [1990], Swallow et al [1997], Koskela and Ollikainen [2001]), but in all cases the analysis is constrained by the structure of the Faustmann model. Specifically, nontimber benefits are always considered to be a direct function of the age of trees.…”

The Forest Rotation Problem With Stochastic Harvest and Amenity Value

“…In that paper it is shown that if amenity services are increasing with the forest stand age, the optimal rotation age will exceed the Faustmann rotation age thereby delaying harvesting, ceteris paribus. Clearly, if amenity services are decreasing with the forest stand age, the reverse happens, see also Strang [1983], Bowes and Krutilla [1985] and Snyder and Bhattacharyya [1990], where the maintenance of provision costs necessary to realize a quality flow of recreational services is explicitly included. Koskela and Ollikainen [2001, 2003a, 2003b, have studied both in the Faustmann and Hartman framework the behavioral impacts of various taxes associated with forestry in terms of how these affect the privately optimal rotation age and the optimal design of tax structure.…”