Amenities, multiple natural disturbances, and the forest rotation problem

Abstract

Previous studies investigating the impact of natural disturbances on rotation age decisions consider only one disturbance and assume immediate harvest and replanting should a disturbance occur. We extend this work by examining multiple disturbances and a continuance decision while allowing for amenities that are important to unharvested forests. Using a conventional open loop approach common in the forest rotation choice literature, we find new and interesting results concerning rotation age decisions and social costs that depend on the nature of amenities and of multiple disturbances. The new results suggest that the prevailing accepted views of the influence of forest amenities on rotation ages may not be general enough.