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Forest Land Value and Rotation with an Alternative Land Use

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  • Skander Ben Abdallah
  • Pierre Lasserre

Abstract

We solve Faustmann’s problem when the land manager plans to switch from the current tree species to some alternative species or land use. Such situations occur when the relative value of the alternative increases faster than the value of the species currently in place. The paper characterizes the land value function and the optimum rotations, highlighting the differences between this non-autonomous problem and the traditional Faustmann’s problem. We show in particular that rotations can be either higher and increasing, or lower and decreasing, compared to the traditional, constant, Faustmann’s rotation.

Suggested Citation

  • Skander Ben Abdallah & Pierre Lasserre, 2016. "Forest Land Value and Rotation with an Alternative Land Use," CIRANO Working Papers 2016s-38, CIRANO.
    • Handle: RePEc:cir:cirwor:2016s-38
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    File URL: https://cirano.qc.ca/files/publications/2016s-38.pdf
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    1. Gregory S. Amacher & Markku Ollikainen & Erkki A. Koskela, 2009. "Economics of Forest Resources," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012480, April.
    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. Hultkrantz, Lars & Andersson, Linda & Mantalos, Panagiotis, 2014. "Stumpage prices in Sweden 1909–2012: Testing for non-stationarity," Journal of Forest Economics, Elsevier, vol. 20(1), pages 33-46.
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    Cited by:

    1. 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.
    2. Petri P Kärenlampi, 2019. "Wealth accumulation in rotation forestry – Failure of the net present value optimization?," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-19, October.

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    More about this item

    Keywords

    Forestry; Land value; Faustmann; Alternative Species; Rotation;
    All these keywords.

    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

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