IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v88y2018icp46-51.html
   My bibliography  Save this article

Forest valuation under the generalized Faustmann formula with taxation

Author

Listed:
  • Chang, Sun Joseph

Abstract

This article presents the second part of a two-part series on forest taxation and valuation. In this second part, I derive the forest valuation formulas under the generalized Faustmann formula with five types of forest property tax. They are the unmodified property tax, the site value tax, the flat property tax, as well as the gross and net forest productivity taxes. Under the assumption of backward tax shifting, all of the taxes result in lower land expectation values. If the tax does not affect the optimal harvest age empirically, then the value of the standing timber remains the same with or without taxation. When a forest property tax, such as an unmodified property tax, shortens the optimal harvest age, it will also affect the value of the standing timber.

Suggested Citation

  • Chang, Sun Joseph, 2018. "Forest valuation under the generalized Faustmann formula with taxation," Forest Policy and Economics, Elsevier, vol. 88(C), pages 46-51.
    • Handle: RePEc:eee:forpol:v:88:y:2018:i:c:p:46-51
    DOI: 10.1016/j.forpol.2017.12.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934117304033
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2017.12.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sun Joseph Chang, 1982. "An Economic Analysis of Forest Taxation's Impact on Optimal Rotation Age," Land Economics, University of Wisconsin Press, vol. 58(3), pages 310-323.
    2. Pasour Jr., E.C., 1973. "Real Property Taxes And Farm Real Estate Values In North Carolina," Department of Economics and Business - Archive 259738, North Carolina State University, Department of Economics.
    3. Chang, Sun Joseph, 2018. "Forest property taxation under the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 88(C), pages 38-45.
    4. E. C. Pasour, 1973. "Real Property Taxes and Farm Real Estate Values: Incidence and Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(4_Part_1), pages 549-556.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang, Sun Joseph, 2020. "Twenty one years after the publication of the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 118(C).
    2. Daigneault, Adam J. & Sohngen, Brent L. & Sedjo, Roger, 2020. "Carbon and market effects of U.S. forest taxation policy," Ecological Economics, Elsevier, vol. 178(C).
    3. Gong, Peichen & Susaeta, Andres, 2020. "Impacts of forest tax under timber price uncertainty," Forest Policy and Economics, Elsevier, vol. 111(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang, Sun Joseph, 2018. "Forest property taxation under the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 88(C), pages 38-45.
    2. Daigneault, Adam J. & Sohngen, Brent L. & Sedjo, Roger, 2020. "Carbon and market effects of U.S. forest taxation policy," Ecological Economics, Elsevier, vol. 178(C).
    3. Gong, Peichen & Susaeta, Andres, 2020. "Impacts of forest tax under timber price uncertainty," Forest Policy and Economics, Elsevier, vol. 111(C).
    4. Chang, Sun Joseph, 2020. "Twenty one years after the publication of the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 118(C).
    5. Danielson, Leon E., 1981. "The Rural Real Estate Market In North Carolina," Department of Economics and Business - Archive 259552, North Carolina State University, Department of Economics.
    6. Stam, Jerome M. & Sibold, Ann Gordon, 1977. "Agriculture and the Property Tax: A Forward Look Based on a Historical Perspective," Agricultural Economic Reports 307674, United States Department of Agriculture, Economic Research Service.
    7. Hyman, D.N. & Pasour Jr., E.C., 1973. "Reducing Property Taxes In North Carolina: An Economic Analysis," Department of Economics and Business - Archive 259537, North Carolina State University, Department of Economics.
    8. K. Erdlenbruch & M. Tidball, 2006. "Singular Optimal Control Model of Stock-Dependent Environmental Policies," Journal of Optimization Theory and Applications, Springer, vol. 131(1), pages 69-88, October.
    9. Melville McMillan & Richard Carlson, 1977. "The Effects of Property Taxes and Local Public Services upon Residential Property Values in Small Wisconsin Cities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(1), pages 81-87.
    10. Wu, Tong & Lawell, C.Y. Cynthia Lin & Just, David R. & Zhao, Jiancheng & Fei, Zhangjun & Wei, Qiang, 2022. "Optimal Forest Management for Interdependent Products: A Nested Dynamic Bioeconomic Model and Application to Bamboo," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322164, Agricultural and Applied Economics Association.
    11. Rossi, David & Kuusela, Olli-Pekka, 2023. "Carbon and Timber Management in Western Oregon under Tax-Financed Investments in Wildfire Risk Mitigation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    12. Pederson, Glenn D. & Coon, Randal C., 1981. "Estimation of Farmland Values for Assessment and Property Taxation in North Dakota," Agricultural Economics Reports 23452, North Dakota State University, Department of Agribusiness and Applied Economics.
    13. Shangfa Hou & Jiaying Wang & Degui Zhu, 2022. "Has the Newly Imposed Property Tax Controlled Housing Prices? An Analysis of China’s 2009–2020 Interprovincial Panel Data," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    14. Kilgore, Michael A., 2014. "Do high property taxes influence family forest land Tenure decisions?," Journal of Forest Economics, Elsevier, vol. 20(2), pages 161-173.
    15. Koskela, E. & Ollikainen, M., 2000. "Optimal Forest Taxation under Private and Social Amenity Valuation," University of Helsinki, Department of Economics 498, Department of Economics.
    16. 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.
    17. Barnard, Charles H. & Pfeffermann, Danny, 1990. "Combining Survey and Other Data to Estimate Agricultural Land Values," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(2), pages 1-13.
    18. Barua, Sepul K. & Kuuluvainen, Jari & Uusivuori, Jussi, 2011. "Taxation, life-time uncertainty and non-industrial private forest-owner's decision-making," Journal of Forest Economics, Elsevier, vol. 17(3), pages 267-284, August.
    19. Drummond, H. Evan, 1975. "The Impact Of Property Tax Equalization On Rural Property In Oklahoma," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 7(2), pages 1-7, December.
    20. M.J. Penttinen, 2000. "Timber Harvesting with Variable Prices and Costs," Working Papers ir00045, International Institute for Applied Systems Analysis.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:88:y:2018:i:c:p:46-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.