Forestry economics

Question 1

In plantation forestry, the economically optimal rotation age when only accounting for timber values is the age where:

Answer 1

the percent increase in value of the stand equals the opportunity cost of capital.

Question 2

frequent regulation changes in timber management

Answer 2

landholders increase discount rate they apply to forestry investments, which decreases the weight placed on future timber benefits and leads to poor management of their forests.