The infinitely worried forest owner key biotopes and forest certification in a Faustmann model

Sammanfattning

In this note, we consider a case when a forestry property may lose its market value through "political risk", illustrated here by it being classified as containing a key biotope. If a key biotope is found on a forest property in Sweden, the wood is almost impossible to sell. We show how the Faustmann formula is modified in this case and identify a "balance sheet" effect and a shortened rotation period. The theory seems to have some empirical support, given observed changes in bank lending contracts and alleged changes in forester's behavior to reduce the "political risk".

Publicerad i

Journal of Forest Economics
2020, volym: 35, nummer: 1, sidor: 69-73

SLU författare

• Kriström, Bengt

  • Institutionen för skogsekonomi, Sveriges lantbruksuniversitet
    
  • Centrum för Miljö- och Naturresursekonomi (CERE)
  • Umeå Universitet

UKÄ forskningsämne

Nationalekonomi
Skogsvetenskap

Publikationens identifierare

• DOI: https://doi.org/10.1561/112.00000502

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/103247