Recursive Preferences in Forest Management
Recursive preferences overcome a variety of the difficulties associated with expected utility in stochastic control problems. Recursive preferences (RP) are applied here to forest management. The effects of risk aversion and intertemporal substitution on optimal management are weighed using this framework. Compared to ENPV, RP with empirically plausible levels of intertemporal substitution implies substantially increased harvest levels in the early years, which drastically reduces the stock growth rate. In contrast, risk aversion has little or no impact on optimal management except for an infinite elasticity of intertemporal substitution. In this instance, increasing risk aversion lowers the time to steady-state and the level of steady-state forest stocks. For. Sci. 47(4):455–465.
Keywords: Dynamic programming; environmental management; forest; forest management; forest resources; forestry; forestry research; forestry science; natural resource management; natural resources; risk aversion; substitution
Document Type: Miscellaneous
Affiliations: 1: Researcher Agricultural Economics Research Institute, P.O. Box 3 Helsinki, Finland, 00411, Fax: +358 9 563 1164 [email protected] 2: Professor Department of Environmental Sciences, University of California, Riverside, Riverside, CA, 92521, Phone: (909) 787-4195; Fax: (909) 787-3993 [email protected]
Publication date: 2001-11-01
- Important Notice: SAF's journals are now published through partnership with the Oxford University Press. Access to archived material will be available here on the Ingenta website until March 31, 2018. For new material, please access the journals via OUP's website. Note that access via Ingenta will be permanently discontinued after March 31, 2018. Members requiring support to access SAF's journals via OUP's site should contact SAF's membership department for assistance.
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.
Forest Science is published bimonthly in February, April, June, August, October, and December.
2016 Impact Factor: 1.782 (Rank 17/64 in forestry)
Average time from submission to first decision: 62.5 days*
June 1, 2016 to Feb. 28, 2017
Also published by SAF:
Journal of Forestry
Other SAF Publications
- Submit a Paper
- Membership Information
- Author Guidelines
- Ingenta Connect is not responsible for the content or availability of external websites