IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v94y2018i3p425-436.html
   My bibliography  Save this article

Measuring the Impact of Risk Preference on Land Valuation: Evidence from Forest Management

Author

Listed:
  • Fan Zhang
  • Sun Joseph Chang

Abstract

Given the extended rotation length of growing trees, price uncertainty and risk preference of forestland owners both play key roles in forest management and should be studied together. However, most existing studies have simply overlooked the varying risk preferences among forestland owners when dealing with price uncertainty. In this study, a heuristic harvest decision approach incorporating varying risk preference was constructed and evaluated. The results indicate that a properly selected level of risk preference may lead to better management performance compared to methods assuming risk neutrality, and the impact of risk preference on forest management varies as market conditions change.

Suggested Citation

  • Fan Zhang & Sun Joseph Chang, 2018. "Measuring the Impact of Risk Preference on Land Valuation: Evidence from Forest Management," Land Economics, University of Wisconsin Press, vol. 94(3), pages 425-436.
    • Handle: RePEc:uwp:landec:v:94:y:2018:i:3:p:425-436
    Note: DOI: 10.3368/le.94.3.425
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/94/3/425
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

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

    Citations

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


    Cited by:

    1. Yu, Zhihan & Ning, Zhuo & Chang, Wei-Yew & Chang, Sun Joseph & Yang, Hongqiang, 2023. "Optimal harvest decisions for the management of carbon sequestration forests under price uncertainty and risk preferences," Forest Policy and Economics, Elsevier, vol. 151(C).
    2. Chang, Sun Joseph & Zhang, Fan, 2023. "Active timber management by outsourcing stumpage price uncertainty with the American put option," Forest Policy and Economics, Elsevier, vol. 154(C).
    3. Chang, Sun Joseph, 2020. "Twenty one years after the publication of the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 118(C).

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

    Statistics

    Access and download statistics

    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:uwp:landec:v:94:y:2018:i:3:p:425-436. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    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.