Journal of Forest Economics > Vol 32 > Issue 1

Multiple-stand forest management under fire risk: Analytical characterization of stationary rotation ages and optimal carbon sequestration policy

Gaspard Dumollard, gaspard.dumollard@gmail.com
 
Suggested Citation
Gaspard Dumollard (2018), "Multiple-stand forest management under fire risk: Analytical characterization of stationary rotation ages and optimal carbon sequestration policy", Journal of Forest Economics: Vol. 32: No. 1, pp 146-154. http://dx.doi.org/10.1016/j.jfe.2018.06.002

Publication Date: 0/8/2018
© 0 2018 Gaspard Dumollard
 
Subjects
 
Keywords
Multiple-stand forest managementRiskExpected utilityStationarityKarush–Kuhn–Tucker conditionsOptimal sequestration policyLandes forest
 

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In this article:
Introduction 
A stochastic dynamic forest management program 
Analytical characterization of stationary forests under expected utility preferences 
A numerical application: maritime pine forestry in southwestern France and optimal carbon sequestration policy 
Discussion 

Abstract

This paper focuses on the characterization of stationary states for a multiple-stand forest that is subject to forest fires and managed by a producer who has expected utility preferences. An analytical and tractable characterization of the stationary rotation age is established on the basis of Karush–Kuhn–Tucker conditions. The rotation age is shown to be unique and to depend on the risk probability but not on producer's risk preferences. A numerical application, using these analytical findings and based on the forestry of maritime pine in southwestern France is conducted. This numerical application consists in designing an optimal carbon sequestration policy based on financial incentives aiming at extending forest rotation ages. Results show that forest fire probability has a significant decreasing impact on sequestration costs.

DOI:10.1016/j.jfe.2018.06.002