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On the Possibility of Using Joint Cost Allocation in Forest Management Decision Making

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Abstract:

A refutable hypothesis is developed theoretically that joint cost allocation schemes are not likely to lead to correct output level decisions. This hypothesis is supported in a test case experiment involving a managed forest in Alabama. Seven allocation schemes are tested: Separable Cost-Remaining Benefits, Nucleolus, Proportional Nucleolus, Weak Nucleolus, Benefit-Included Nucleolus, Shapley Value, and a Generalized Shapley Value. None of these schemes indicate, in the test case, correct timber output levels based on timber benefits and allocated costs alone. For. Sci. 33(4):1035-1046.

Keywords: Economics; forest planning; joint production; policy

Document Type: Journal Article

Affiliations: Natural Resource Planner, Southern Region, Athens, GA, USDA Forest Service

Publication date: December 1, 1987

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
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