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An Empirical Examination Of Optimal Rotations In A Multiple-Use Forest In The Presence Of Fire Risk

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  • Englin, Jeffrey E.
  • Boxall, Peter C.
  • Hauer, Grant

Abstract

Fires are an important and natural component of forest ecosystems that affect the timber value of forests, and thus optimal rotations. Fire also affects amenity values provided by forests. This analysis examines the relationships among forest fire risk, timber values, and amenity values in a Faustmann rotation framework. An empirical application of the model is presented where jack pine growth in the Canadian Shield region is integrated with the nonmarket values associated with wilderness recreation. The results suggest that while the rotation period of jack pine is shorter in the presence of fire risk, the inclusion of this particular amenity would lengthen rotation periods. The level of visits to the wilderness area has a significant effect on the rotation period. Failure to account for backcountry recreation in rotations of forests in multiple-use wilderness areas of the Canadian Shield would result in suboptimal management.

Suggested Citation

  • Englin, Jeffrey E. & Boxall, Peter C. & Hauer, Grant, 2000. "An Empirical Examination Of Optimal Rotations In A Multiple-Use Forest In The Presence Of Fire Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-14, July.
    • Handle: RePEc:ags:jlaare:30835
    DOI: 10.22004/ag.econ.30835
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    References listed on IDEAS

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    3. Swallow, Stephen K. & Parks, Peter J. & Wear, David N., 1990. "Policy-relevant nonconvexities in the production of multiple forest benefits," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 264-280, November.
    4. Hartman, Richard, 1976. "The Harvesting Decision When a Standing Forest Has Value," Economic Inquiry, Western Economic Association International, vol. 14(1), pages 52-58, March.
    5. Hanemann, W. Michael, 1983. "Marginal welfare measures for discrete choice models," Economics Letters, Elsevier, vol. 13(2-3), pages 129-136.
    6. Jeffrey Englin & Peter Boxall & David Watson, 1998. "Modeling Recreation Demand in a Poisson System of Equations: An Analysis of the Impact of International Exchange Rates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 255-263.
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