Journal of Forest Economics > Vol 16 > Issue 3

Integrating neighbourhood effects in the calculation of optimal final tree diameters

Fabian Härtl, , Andreas Hahn, , Thomas Knoke, ,
Suggested Citation
Fabian Härtl, Andreas Hahn and Thomas Knoke (2010), "Integrating neighbourhood effects in the calculation of optimal final tree diameters", Journal of Forest Economics: Vol. 16: No. 3, pp 179-193.

Publication Date: 0/8/2010
© 0 2010 Fabian Härtl, Andreas Hahn, Thomas Knoke
Economic optimizationFaustmann modelSoil expectation valuePressler percentNeighbourhood effectsSingle tree approachQ23Q51Q56Q57


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In this article:
Aim and strategy 
The soil expectation value as a valuation calculus 
The optimization of the rotation period 
Transition to the single tree level 
Neighbours’ effects 
Hypothesis and example 


Modern silvicultural treatments are based on single trees whereas classic forest economics look at the stand level. To accompany each other it is necessary to transfer the established economic models to the single tree level. This paper is an approach to use the Faustmann model and the corresponding marginal rate of return (Pressler percent) to derive value increment rates of single trees taking into account neighbourhood effects due to competition between individual trees. Furthermore, optimal rotation periods and optimal final diameters for future trees will be calculated.