Journal of Economics

, Volume 100, Issue 3, pp 217–233 | Cite as

About optimal harvesting policies for a multiple species forest without discounting

Article

Abstract

We study the optimal harvesting of a mixed forest composed of multiple species, each one having a different maturity age, where only mature trees can be harvested. We prove the existence of an optimal program and the equivalence of maximal, optimal and minimal value-loss programs. We characterize the unique golden rule stock and prove that it is sustainable, i.e., it is invariant along the optimal program. Furthermore, we also prove that along any good program from any initial condition there is convergence of the forest’s state to this sustainable state. Finally, we define a value function in the set of forest states and define a pre-order that provides an alternative way of characterizing the golden rule stock and may potentially have independent interest.

Keywords

Existence of optimal programs Golden-rule stock Maximal, optimal and minimal value loss programs Asymptotic stability Forest management Environmental economics 

JEL Classification

C62 D90 Q23 

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  1. 1.Departamento de MatemáticaUniversidad Técnica Federico Santa MaríaValparaísoChile

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