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Public Forest Land Allocation: A Dynamic Spatial Perspective on Environmental Timber Management

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  • Rose, Steven K.

Abstract

The complicated process of public forest land allocation involves competing economies of scale. While harvesting cost economies of scale may benefit harvesters, where average costs decline as contiguous harvested acreage increases, larger harvested areas can generate diseconomies in terms of environmental and ecosystem damage. This paper extends existing timber rotation models to more completely account for spatial synergies. Simulations are used to illustrate potential impacts. Simulations find that adjacency economies of scale may be an important determinant of the optimal spatial harvest configuration and intertemporal harvest sequence. The consequences of scheduling harvests ignorant of fixed costs are also discussed.

Suggested Citation

  • Rose, Steven K., 1999. "Public Forest Land Allocation: A Dynamic Spatial Perspective on Environmental Timber Management," Working Papers 127700, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127700
    DOI: 10.22004/ag.econ.127700
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    File URL: https://ageconsearch.umn.edu/record/127700/files/Cornell_Dyson_wp9927.pdf
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    References listed on IDEAS

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    1. Paarsch, Harry J., 1997. "Deriving an estimate of the optimal reserve price: An application to British Columbian timber sales," Journal of Econometrics, Elsevier, vol. 78(2), pages 333-357, June.
    2. Stephen K. Swallow & Piyali Talukdar & David N. Wear, 1997. "Spatial and Temporal Specialization in Forest Ecosystem Management Under Sole Ownership," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 311-326.
    3. Bowes, Michael D. & Krutilla, John V., 1985. "Multiple use management of public forestlands," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 12, pages 531-569, Elsevier.
    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. Lewis, Tracy R & Schmalensee, Richard, 1977. "Nonconvexity and Optimal Exhaustion of Renewable Resources," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 535-552, October.
    6. Erickson, Jon D. & Chapman, Duane & Fahey, Timothy J. & Christ, Martin J., 1999. "Non-renewability in forest rotations: implications for economic and ecosystem sustainability," Ecological Economics, Elsevier, vol. 31(1), pages 91-106, October.
    7. Swallow Stephen K. & Wear David N., 1993. "Spatial Interactions in Multiple-Use Forestry and Substitution and Wealth Effects for the Single Stand," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 103-120, September.
    8. 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.
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    Cited by:

    1. Rose, Steven K. & Chapman, Duane, 2003. "Timber harvest adjacency economies, hunting, species protection, and old growth value: seeking the dynamic optimum," Ecological Economics, Elsevier, vol. 44(2-3), pages 325-344, March.

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