A new Faustmann optimal rotation harvesting stands’ problem under Brown geometric price and Logistic and Gompertz wood stock, diffusions is presented. The optimal cut policies for the stochastic Faustmann model and the single harvest rotation or Vicksell model are evaluated in the case of a Chilean Radiata pine forest company. The company cut policy validates the Vicksell model, its optimal cut...

It must have been a very long time since man first discovered that buildings too rise and fall. A forest is planted, harvested, and replanted; a machine built, used and dismantled; and likewise, a site is constructed, occupied, and reconstructed... Perhaps the first systematic analysis of building life cycles was on costs. Surveyors and building economists in the UK first wrote on life cycle co...

The majority of forest land in the U.S. is owned by individuals and institutions that are not directly involved in the forest products industry. Much of this land is thought to be managed inefficiently, but the reasons for this are unclear. This article focusses on three possible factors: information and transactions costs; nonfinancial forest values; and liquidity constraints. Models for the r...

In forest carbon accounting and policy assessment at the micro level, inconsistencies, even confusion, abound regarding how timber are treated as joint products, whether Paris Agreement principles of additionality permanence followed, if differentiated composition duration harvested wood products (HWPs) captured. Here, we tackle these issues with two widely used alternative analytic frameworks....

This paper examines the role and impact of taxation on sustainable forest management. It is shown that fiscal instruments neither reinforce nor substitute for traditional regulatory approaches and can actually undermine sustainability. The paper uses the reasoning at the root of the Faustmann solution to draw conclusions on the incentives for sustainable tropical forest exploitation. It propose...

This paper deals with optimal forest rotation age and silvicultural investment under policy or regulatory uncertainty to which wasteful deforestation and lack of reforestation and afforestation efforts in the developing countries and loss of old growth forests and biodiversity in the developed countries are attributed. Incorporating a stochastic uncertainty factor into the familiar deterministi...

This paper analyzes a stochastic forest growth model in which the manager is able to first thin the forest to promote better growth before harvesting. Both Wicksell single thinning-andharvesting cycle and Faustmann on-going rotation problems are considered. The Wicksell problem is analyzed by first restricting the class of decision times to (thinning,harvesting) pairs that bound the growth away...