Skip to main content

Shadow pricing diversity in U. S. national forests

Buy Article:

$28.45 plus tax (Refund Policy)


Tobit estimation of the market value of timber sales in national forests of North Carolina demonstrates the important effect of stand diversity on the formulation of bid prices for mixed-species timber tracts. The hedonic model generates a shadow price for diversity according to changes in bid prices, an effective shift in the demand curve for auctioned tracts due to stand diversity attributes. This approach contrasts with traditional shadow price analyses that focus on the supply effects of environmental constraints. Results are corrected for the effects of bidder participation, market conditions, production costs, and other stand attributes. Econometric results demonstrate that stand heterogeneity is a highly significant factor influencing the market value of timber sales from national forests of the Appalachian region. Greater heterogeneity results in lower bid prices for timber sales, indicating a positive shadow price for maintenance of stand diversity.

Keywords: U. S. national forest; diversity; logging; shadow price; tobit model

Document Type: Research Article


Affiliations: 1: School of Forest Resources and Conservation, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, USA 2: School of Forest Resources, Pennsylvania State University, 7 Ferguson Building, University Park, PA 16802 USA

Publication date: December 1, 2002

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Partial Open Access Content
Partial Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
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