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Faustmann formula and its use in forest asset valuation: A review and a suggestion

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  • McIntosh, Michael G.
  • Zhang, Daowei

Abstract

We present the statistics of articles focusing on optimal forest rotation age or associated with the Faustmann Formula following David Newman's, 2002 review article. In addition, we investigate the number of articles looking at forest investment, forest valuation, single-stand, forest management, fire risk, disease/ pest, conservation, and carbon/ climate change. Finally, we propose a unified framework based on the original intent of the Faustmann Formula – forest asset valuation – and call on instructors of forest economic courses to use it in communication with students and for forest economists to perform more research on asset valuation at stand and especially forest levels.

Suggested Citation

  • McIntosh, Michael G. & Zhang, Daowei, 2024. "Faustmann formula and its use in forest asset valuation: A review and a suggestion," Forest Policy and Economics, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:forpol:v:160:y:2024:i:c:s138993412400011x
    DOI: 10.1016/j.forpol.2024.103158
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    References listed on IDEAS

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    1. Newman, D.H., 2002. "Forestry's golden rule and the development of the optimal forest rotation literature," Journal of Forest Economics, Elsevier, vol. 8(1), pages 5-27.
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