Skip to main content

Profit Efficiency in Timber Supply: Marginalization and Other Relevant Influences

Buy Article:

$29.50 plus tax (Refund Policy)

The objective of this article was to explore how marginalization of revenues from timber sales relative to income from agriculture and employment affects profit efficiency (the ratio of actual profit to maximum obtainable profit). We also sought to identify and measure the effects of other relevant inefficiency factors. A translog profit frontier function with an inefficiency module was estimated using a panel of 2,265 observations of 385 active Norwegian forest owners for 1991‐2004. We found that profit efficiency decreases as the revenues from timber sales fall relative to agricultural or wage income. Other factors decreasing the efficiency were logging distance (beyond what can be explained by logging costs), fragmentation of the forest property, and time. Factors increasing profit efficiency were experience (age), information (possession of a management plan), and geographical location (centrality). On the basis of our results we make recommendations on how forest owners can improve their profit efficiency. We also suggest further developing and streamlining contract regimens as policy instruments for promoting efficiency.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Keywords: forest ownership; stochastic frontier analysis; timber harvesting

Document Type: Research Article

Publication date: 2009-12-01

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.
    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
  • Podcasts
  • Ingenta Connect is not responsible for the content or availability of external websites
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more