Optimal Forest Rotation with in Situ Preferences

摘要

This study develops a utility maximization, infinite horizon rotation model that includes in site values and the forest woner's consumption-savings decision making. The value of forest land becomes owner-specific and depends on property rights related to in situ benefits. The length of the rotation period depends, e.g., on the wealth of the forest owner and may evolve in time. A forest owner with accumulating nonforest assets never continues harvesting forever. In contrast, with decreasing nonforest assets the rotation period concerges toward the Faustamnn solution.