Optimal private and public harvesting under spatial and temporal interdependence

This article extends the Hartman model to include the case where two adjace nt stands maybe interdependent in the provision of amenity services. We sho w first that the relationship between the focal and exogenous rotation age depends on the nature of their temporal interdependence, that is, on what h appens to the degree of substitutability or complementarity between the sta nds when the rotation age of the private focal stand changes. We then apply this analysis to the determination of public rotation age in a two-stage g ame where the government first decides on its harvesting, and private harve sting is chosen in the second stage. Several new rules are derived for the socially optimal design of public harvesting depending on the nature of int erdependence between private and public stands as well as on whether or not citizens have access to private forests for recreation.