Optimal forest stock and harvest with valuing non-timber benefits: a case of US coniferous forests

How much to cut and to remain, as well as when to cut is an important decis ion-making issue in forest management. Unlike forest age, forest stock and harvest levels are applicable to both plantations and natural forests. This paper investigates the optimal forest stock and harvest with the considera tion of both timber and non-timber benefits. The impacts of the discount ra te, silvicultural cost, marginal timber benefit, and marginal non-timber be nefit on the optimal forest stock and harvest are also examined. The result s indicate that forest stock should be thickened when non-timber benefits a re valued in addition to timber. The optimal steady state stock increases w ith a decrease in the discount rate or an increase in marginal non-timber b enefit. However, the impacts of the discount rate, marginal timber benefit, and marginal non-timber benefit on the optimal steady state harvest are am biguous. In addition, a decrease in the discount rate has the same effect o n the optimal steady state stock and harvest as an increase in the ratio of marginal non-timber benefit to marginal timber benefit. These theoretical results are illustrated through an empirical example of the US coniferous f orests. (C) 2001. Elsevier Science B.V. All rights reserved.