Journal of Forest Economics > Vol 16 > Issue 1

The optimal selective logging regime and the Faustmann formula

Angels Xabadia, Renan U. Goetz, renan.goetz@udg.edu
 
Suggested Citation
Angels Xabadia and Renan U. Goetz (2010), "The optimal selective logging regime and the Faustmann formula", Journal of Forest Economics: Vol. 16: No. 1, pp 63-82. http://dx.doi.org/10.1016/j.jfe.2009.06.002

Publication Date: 0/1/2010
© 0 2010 Angels Xabadia, Renan U. Goetz
 
Subjects
 
Keywords
JEL Codes:C610C630Q230
Distributed optimal controlDensity effectsForest managementFaustmann ruleSelective logging
 

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In this article:
Introduction 
The model 
Considerations in the long-run 
Empirical study 
Conclusions 

Abstract

This study analyzes the optimal selective logging regime of a size-distributed forest where individual trees compete for scarce resources such as space, light, and nutrients. The decision problem of the forest manager is formulated as a distributed optimal control problem. The interpretation of the first-order conditions allows a generalization of the Faustmann formula. In an empirical part, this article numerically determines the optimal management regime of a size-structured forest and shows that the optimal selective logging regime is associated with a normal forest under a wider variety of situations than stated in the previous literature.

DOI:10.1016/j.jfe.2009.06.002