Re-examining the theories supporting the so-called Faustmann formula

Navarro, Guillermo

doi:10.1007/978-94-017-0279-9_2

Cited by 6 publications

(5 citation statements)

References 20 publications

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“…involves non-recurring initial establishment and afforestation costs. Navarro (2003) discusses how the inclusion of original investment in land improvement and afforestation costs (establishing a forest) affects optimal forest rotation. Obviously, the standard Faustmann model can be modified so that is copes with different alternatives with regard to initial investment in establishing a new generation of forest crop or in converting forestland to some other use that pays positive rent.…”

Section: Critique and Revival Of The Faustmann Modelmentioning

confidence: 99%

The emergence and early development of forest resource economic thought: From land and forest valuation to marginal analysis and vintage capital models

Viitala¹

2016

Diss. For.

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Jaana Laine and Jussi Leppänen for the valuable advice and many discussions that helped to improve this work. I would also like to thank the pre-examiners of this dissertation, professors Martin Moog and Jorma Sappinen for their valuable comments and suggestions, and professor Moog for also sharing his findings. The Finnish Forest Research Institute, or the Natural Resources Institute Finland from 2015 onwards, provided an inspiring intellectual environment and excellent facilities to pursue and complete this work. I wish to express my sincere thanks to all my colleagues in these two research institutions who by thought, time and labour have made the preparation and publication of this dissertation possible. The library personnel of the Finnish Forest Research Institute deserve special thanks for their help and advice. The wonderful libraries of the University of Helsinki, furnished with remarkable literature collections and retreat facilities for reading, thinking and learning, provided a special atmosphere and inspiration even on the hardest of days. A special thanks also to Stella Thompson, University of Helsinki, for revising the language of this dissertation. Above all, I owe an enormous debt to my family, Hannamari, Seliina and Helinä, who have encouraged me during the long process of writing this dissertation and patiently put up with my spending many evenings and weekends alone with books, articles and a computer. The most precious support for this work has originated from their sparkling minds and vivid curiosity that have been constant reminders of what intergenerational perspective, science and life are really about.

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Section: Critique and Revival Of The Faustmann Modelmentioning

confidence: 99%

The emergence and early development of forest resource economic thought: From land and forest valuation to marginal analysis and vintage capital models

Viitala¹

2016

Diss. For.

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“…(Casini and Romano, 1992, pp. 20 -21;Navarro, 2003). according to a w( q) coefficient dependent on forest typology q. In order to quantify the correspondent residues derived from utilisations carried out during the optimal turn t*, we referred to the existing yield tables which provide indications on residues percentage according to the species and age of the forest stands (Castellani, 1982).…”

Section: Biomasses Coming From Forest Areasmentioning

confidence: 99%

A methodology to anaylse the potential development of biomass-energy sector: an application in Tuscany

Bernetti

Fagarazzi

Fratini

2004

Forest Policy and Economics

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“…However, a solution was provided by G.A. Navarro (2003) who analysed alternatives to forestland use in the future. In Latvia, the transformation of forestland into another land use is limited or a payment on alternative forestland uses is imposed, thereby violating the assumption about a free capital and land market.…”

Section: Introductionmentioning

confidence: 99%

Simulation of Management Enhancement Scenarios for the JSC Latvian State Forests

Feldmanis¹,

Pilvere²

2020

Rural Development 2019

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The expansion of global economy and the rise of living standards are set to force the world's consumption of raw material to nearly double by 2060, thus consumption of wood resources is forecasted to increase more than twofold. In Latvia, forests cover 52% of the total area. The total forest area in Latvia has continued to grow since the beginning of the 20 th centuryin 1923 the forests covered only 27% of the country's area; accordingly, the question is whether the value of forests continues to grow proportionally. One of the criteria for determining the value of forest is forest capital. A higher economic value of forest reflects the forest's capability to produce more wood, and this allows generating higher revenues from forestry. It is the value of plantations of certain tree species as well as the quality of wood produced that increase the price of wood and consequently result in higher revenues. The largest supplier of wood in Latvia is the state-owned joint stock company Latvian State Forests (JSC LSF), which managed 1.6 million hectares of forestland in 2018. In 2018, 12.8 million cubic metres of roundwood were harvested in Latvia, of which 6 million cubic metres were harvested by the JSC LSF. Therefore, the research aims to design and assess potential scenarios of increasing the value of forest capital for the JSC LSF. The authors simulated potential scenarios for the JSC LSF in order to identify changes to be made in the current forest management pattern with the aim of increasing the value of forest capital. A higher value of forest capital would also mean greater public attention to the future use of existing resources. Calculations of the economic value of forests were carried out to identify necessary changes to be made in the management of state-owned forests in Latvia and to compare several management enhancement scenarios. The potential scenarios were assessed by five qualified experts, academics, representatives of business and public administration by employing the Analytic Hierarchy Process (AHP). The experts rated the possible scenarios for enhancing forest management relatively equally, giving slightly higher ratings to the potential scenario of quotation of the national forest management company on the stock exchange. The value of forest capital was calculated for each of the potential scenarios using the most commonly used net present value method (NPV). It was concluded that the potential scenario of lowering the diameter threshold for felling trees by two centimetres would lead to the greatest increase in the value of forest capital.

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Re-examining the theories supporting the so-called Faustmann formula

Cited by 6 publications

References 20 publications

The emergence and early development of forest resource economic thought: From land and forest valuation to marginal analysis and vintage capital models

The emergence and early development of forest resource economic thought: From land and forest valuation to marginal analysis and vintage capital models

A methodology to anaylse the potential development of biomass-energy sector: an application in Tuscany

Simulation of Management Enhancement Scenarios for the JSC Latvian State Forests

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