Journal of Forest Economics > Vol 21 > Issue 1

Economic balancing of forest management under storm risk, the case of the Ore Mountains (Germany)

Peter Deegen, , deegen@forst.tu-dresden.de Kai Matolepszy, ,
 
Suggested Citation
Peter Deegen and Kai Matolepszy (2015), "Economic balancing of forest management under storm risk, the case of the Ore Mountains (Germany)", Journal of Forest Economics: Vol. 21: No. 1, pp 1-13. http://dx.doi.org/10.1016/j.jfe.2014.10.005

Published: 0/1/2015
© 0 2015 Peter Deegen, Kai Matolepszy
 
Subjects
 
Keywords
JEL Codes:D92Q23Q54
Faustmann formulaExpectation valueSurvival probabilityNeighbourhood-protectioneffectProfitabilityNorway spruce
 

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In this article:
Problem
Model of the expected land expectation value for storm risk
Plan of calculations and data
Results of numerical calculations
Discussion and conclusion

Abstract

Storm events shorten the optimal rotation compared with the classical Faustmann solution.

When the neighbourhood-protection-effect changes simultaneously with site productivity and site-related arrival rates, analyses in such complex environments involve numerous, qualitatively ambiguous effects that ask for empirical escorts. We use empirical material from the Ore Mountains (Germany), where storm damages were analysed between 1831 and 1981. The calculated results show the complex interweavements of the different factors concerning storm risk. The multiple effects under storm risk ask for specific forest management strategies, which cannot be found intuitively: more complex analyses need support of economic calculations.

DOI:10.1016/j.jfe.2014.10.005