The Economic Control of a Renewable Resource Under Sole Ownership

Download or read book The Economic Control of a Renewable Resource Under Sole Ownership written by C. Michael Wernerheim and published by . This book was released on 1989 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this thesis is twofold. First, it examines optimal investment problems arising in renewable resource sectors such as forestry where important externalities are attached to the growing stock, and where investment in the resource (the biomass) and application of capital and labour (the harvesting capacity) must be considered simultaneously. Second, a general framework for empirical analysis is developed. to analyze logging production under profit maximization, and when externalities are attached to the standing forest. Taxation regimes and quantitative control policies to correct for market failure in forestry are examined. The analytical solution is characterized by dynamic bioeconomic golden rule equations. A generalized, dynamic Faustmann-Ohlin rule is derived for the case when more than one type of harvesting method is used. This is a new theoretical feature of the approach explicated here. obtained of optimal harvest rates, stock levels, site values and other information of relevance to forest policy. Efficiency implications of current forestry legislation and taxation are assessed. The utility of the estimated model for practical forest management is also demonstrated. Although applied to forestry, the approach is readily amendable to renewable management in general. efficient forest management does not appear to be in conflict with the intent of Swedish forestry legislation.