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Again on the optimal rotation period of renewable resources: wrong objections to a right objective

  • Fritz HelmedagEmail author
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Abstract

An article coming from my pen has met with opposition. If the critics are to be believed, I put forth an erroneous conception on how to calculate the present value of a forest mill’s total assets, including soil and standing timber. This reproach, however, is untenable. In fact, the economically correct solution brings to light that the principle of sustainable maximum yield is productively efficient and at the same time most lucrative.

Keywords

Renewable resources Optimal rotation period Faustmann formula Maximum sustainable yield 

JEL Classification

Q23 D92 

Notes

References

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  3. Faustmann M (1968) Calculation oft the value which forest land and immature stands possess for forestry. In: Gane M (ed) Martin Faustmann and the evolution of discounted cash flow: two articles from the original German of 1849. Commonwealth Forestry Institute, Oxford, pp 27–55 (Reprinted in: Journal Forest Economics, 1(1) (1995): 7–44)Google Scholar
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  6. Knoke T, Paul C, Friedrich S, Borchert H, Härtl F, Chang SJ (2019) The optimal rotation for a fully regulated forest is the same as, or shorter than, the rotation for a single even-aged forest stand – comments on Helmedag’s (2018) paper. Eur J For Res.  https://doi.org/10.1007/s10342-019-01242-x CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2020

Authors and Affiliations

  1. 1.Department of EconomicsChemnitz University of TechnologyChemnitzGermany

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