Maximum Sustained Yield, Forest Rent or Faustmann: Does it Really Matter?
Abstract:The efficiency gains when harvests are determined using the Faustmann approach instead of Maximum Sustained Yield (MSY), Forest Rent or some silvicultural rules were studies. The analysis was based on a variable-density stand growth model and computations over all admissible combinations of initial stand age and basal area for Finnish Norway spruce and Scots pine sites. Following MSY or Forest Rent led to a major reduction in the economic value of especially highly stocked stands. Finnish silvicultural recommendations (an example of silvicultural rules) encouraged production of higher than optimal quality timber. Applying Forest Rent, MSY or silvicultural recommendations led to respective reductions of 63%, 30% and 13% in the value of a typical conifer forest at a 4% rate of interest. The results also showed that an increase in the rate of interest may lengthen the ongoing rotation if the initial state falls outside the optimal path initiated at bare land.
Document Type: Research Article
Publication date: September 1, 2003