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

  • Fritz HelmedagEmail author
Reply to Commentary


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.


Renewable resources Optimal rotation period Faustmann formula Maximum sustainable yield 

JEL Classification

Q23 D92 



  1. Chang SJ, Chen Y, Zhang F (2019) Debunking the forest rent fallacy in a fully regulated forest. Eur J For Res. CrossRefGoogle Scholar
  2. Faustmann F (1849) Berechnung des Werthes, welchen Waldboden, sowie noch nicht haubare Holzbestände für die Waldwirthschaft besitzen. In: Allgemeine Forst- und Jagd-Zeitung. December, pp 441–451Google Scholar
  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
  4. Helmedag F (2008) The optimal rotation period of renewable resources: theoretical evidence from the timber sector. In: Fabozzi F, Füss R, Kaiser DG (eds) Handbook of commodity investing. Wiley, Hoboken, pp 145–166Google Scholar
  5. Helmedag F (2018) From 1849 back to 1788: reconciling the Faustmann formula with the principle of maximum sustainable yield. Eur J For Res 137(3):301–306CrossRefGoogle Scholar
  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. CrossRefGoogle Scholar

Copyright information

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

Authors and Affiliations

  1. 1.Department of EconomicsChemnitz University of TechnologyChemnitzGermany

Personalised recommendations