Commmercial Plantations: The Forester’s Problem

Question 1

Main question in forestry economics

Answer 1

What is the optimal rotation period for a stand of trees

Known as optimal forest management

Question 2

Single rotation forestry model- what is the objective

Answer 2

Forester wants to know the optimal harvesting time:

The age at which profits are maximised

Question 3

Extensions of the model, as unrealistic to expect a single rotation model

Answer 3

Infinite rotation forestry model

Question 4

Extension of model, as does not consider the flow of non-timber goods and services (so decisions in the single model are privately optimal but socially inefficient)

Answer 4

Multiple-use forestry model

Gauges the socially optimal rotation age