Einfassung für Rosenbeete

Franz Deege

Eine alte Rose

Max Deegen jun

Economic analysis of exploitation and regeneration in plantations with problematic site productivity

Although intensive managed plantations clearly increase the growth and yield of forests several papers refer to declining forest productivity. Therefore in this paper we study the impact of declining forest productivity on the land expectation value and the optimal rotation length. We start from the research by Lu and Chang (1996) and try to fill the gap between the stable site productivity (âbestâ) and the site mining (âworstâ) cases. For that we extend the classical Faustmann model by availability of different recovering technologies. In general the model allows the analysis of the two plantation groups: âmining the site by high productive plantation followed by management of degraded areasâ and âhigh productive plantation and regeneration cyclingâ with the same comparative static. The model, analysis and comparison with the two extreme cases in Lu and Chang (1996) leads to a detailed understanding of land use management when site productivity decline is possible. Particularly the relation between declining periods with intensive land use and land use alternatives after declining periods with regeneration can be well understood. Findings are: Not ever declining process asks for regeneration. Many declining processes can be stopped at early times by high cash flows after mining periods. Shortenings of the regeneration time can boost site mining intensities.Faustmann model Declining forest productivity Recovering technologies Exploitation Forest plantation Comparative statics

Pressler's indicator rate formula as a guide for forest management

In this paper, it is shown that Pressler's indicator rate formula is also the optimal condition for the determination of the optimal harvest age under the generalized Faustmann formula. In addition, a modern treatment of the quantity increment, quality increment, and price increment is presented. Pressler's indicator rate formula is then applied to determine the optimal harvest age in a dynamic world of unanticipated changes.Pressler Indicator rate Generalized Faustmann formula Quantity increment Quality increment Price increment Dynamic world Ex ante analysis Ex post analysis Unanticipated changes