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Application of the generalized Faustmann model to uneven-aged forest management

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  • Chang, Sun Joseph
  • Gadow, Klaus V.

Abstract

In this paper, a generalized Faustmann model is developed for uneven-aged management to allow the number of years and the level of residual growing stock to vary from one cutting cycle to the next. Comparative static analyses are conducted to determine the effect of changes in interest rate, stumpage price of the trees selected for harvest, the stumpage value of the residual growing stock, and the future land value on the decision variables. The model is then applied to study the uneven-aged management of a loblolly-shortleaf pine stand in south central U.S. to determine the length of the cutting cycle and the level of residual growing stock for the first cutting cycle as well as for a case involving four cutting cycles. Sensitivity analyses reveal that for the uneven-aged loblolly-shortleaf pine stand both the length of the cutting cycle and the level of the residual growing stock are very sensitive to changes in land value in the future, in the stumpage prices of trees selected for harvest, in the stumpage prices of the residual growing stock, and in the interest rate.

Suggested Citation

  • Chang, Sun Joseph & Gadow, Klaus V., 2010. "Application of the generalized Faustmann model to uneven-aged forest management," Journal of Forest Economics, Elsevier, vol. 16(4), pages 313-325, December.
    • Handle: RePEc:eee:foreco:v:16:y:2010:i:4:p:313-325
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    References listed on IDEAS

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    1. Reynolds, R. R., 1959. "Eighteen Years of Selection Timber Management on the Crossett Experimental Forest," Technical Bulletins 170469, United States Department of Agriculture, Economic Research Service.
    2. Kant, Shashi, 1999. "Sustainable management of uneven-aged private forests: a case study from Ontario, Canada," Ecological Economics, Elsevier, vol. 30(1), pages 131-146, July.
    3. Orois, Sofia Sanchez & Chang, Sun Joseph & Gadow, Klaus von, 2004. "Optimal residual growing stock and cutting cycle in mixed uneven-aged maritime pine stands in Northwestern Spain," Forest Policy and Economics, Elsevier, vol. 6(2), pages 145-152, March.
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    Citations

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    Cited by:

    1. Petri P. Kärenlampi, 2018. "Stationary Forestry with Human Interference," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    2. Ben Abdallah, Skander & Lasserre, Pierre, 2017. "Forest land value and rotation with an alternative land use," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 118-127.
    3. Deegen Peter, 2013. "Die Stellung der Tharandter Theorien der forstlichen Nachhaltigkeit in Hayeks Klassifikation der Formen menschlicher Ordnung / The relation among the Tharandt-based theories of forest sustainability a," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 64(1), pages 79-98, January.
    4. Susaeta, Andres & Chang, Sun Joseph & Carter, Douglas R. & Lal, Pankaj, 2014. "Economics of carbon sequestration under fluctuating economic environment, forest management and technological changes: An application to forest stands in the southern United States," Journal of Forest Economics, Elsevier, vol. 20(1), pages 47-64.
    5. Accastello, Cristian & Blanc, Simone & Mosso, Angela & Brun, Filippo, 2018. "Assessing the timber value: A case study in the Italian Alps," Forest Policy and Economics, Elsevier, vol. 93(C), pages 36-44.
    6. Roessiger, Joerg & Griess, Verena C. & Härtl, Fabian & Clasen, Christian & Knoke, Thomas, 2013. "How economic performance of a stand increases due to decreased failure risk associated with the admixing of species," Ecological Modelling, Elsevier, vol. 255(C), pages 58-69.
    7. Honkaniemi, Juha & Ahtikoski, Anssi & Piri, Tuula, 2019. "Financial incentives to perform stump treatment against Heterobasidion root rot in Norway spruce dominated forests, the case of Finland," Forest Policy and Economics, Elsevier, vol. 105(C), pages 1-9.
    8. Chang, Sun Joseph & Deegen, Peter, 2011. "Pressler's indicator rate formula as a guide for forest management," Journal of Forest Economics, Elsevier, vol. 17(3), pages 258-266, August.
    9. Nguyen, Trung Thanh & Nghiem, Nhung, 2016. "Optimal forest rotation for carbon sequestration and biodiversity conservation by farm income levels," Forest Policy and Economics, Elsevier, vol. 73(C), pages 185-194.
    10. Chang, Sun Joseph, 2018. "Forest property taxation under the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 88(C), pages 38-45.
    11. Sylvain Caurla & Antonello Lobianco, 2020. "Estimating climate service value in forestry : The case of climate information on drought for maritime pine in Southwestern France," Post-Print hal-03639335, HAL.
    12. Chang, Sun Joseph, 2020. "Twenty one years after the publication of the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 118(C).
    13. Halbritter, Andreas, 2015. "An economic analysis of double-cohort forest resources," Journal of Forest Economics, Elsevier, vol. 21(1), pages 14-31.
    14. Sylvain Caurla & Antonello Lobianco, 2020. "Estimating climate service value in forestry : The case of climate information on drought for maritime pine in Southwestern France," Post-Print hal-02617889, HAL.
    15. Halbritter, Andreas & Deegen, Peter, 2011. "Economic analysis of exploitation and regeneration in plantations with problematic site productivity," Journal of Forest Economics, Elsevier, vol. 17(3), pages 319-334, August.
    16. Parajuli, Rajan & Chang, Sun Joseph, 2012. "Carbon sequestration and uneven-aged management of loblolly pine stands in the Southern USA: A joint optimization approach," Forest Policy and Economics, Elsevier, vol. 22(C), pages 65-71.
    17. Tahvonen, Olli, 2016. "Economics of rotation and thinning revisited: the optimality of clearcuts versus continuous cover forestry," Forest Policy and Economics, Elsevier, vol. 62(C), pages 88-94.

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