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Chladna, Z. (2007). Determination of optimal rotation period under stochastic wood and carbon prices. Forest Policy and Economics 1031-1045. 10.1016/j.forpol.2006.09.005.
Full text not available from this repository.Abstract
The valuation of forest stands is traditionally based on a profit calculus involving revenue from wood sales and associated costs. Currently, the role of carbon management in forests is actively discussed. In a stochastic setting we extend the analysis of the optimal rotation period by considering uncertain revenue streams from carbon trading. We develop a real options model given uncertainties in future wood and CO2 price behaviour. A detailed sensitivity analysis of the numerical results for both cases - with and without carbon sequestration - is provided. We find that optimal rotation periods vary considerably with (i) the type of price process, (ii) the way how carbon income is defined, and (iii) the selection of discount rates.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Optimal rotation; Carbon sequestration; Real options |
| Research Programs: | Forestry (FOR) |
| Bibliographic Reference: | Forest Policy and Economics; 9:1031-1045 [2007] |
| Depositing User: | IIASA Import |
| Date Deposited: | 15 Jan 2016 08:39 |
| Last Modified: | 27 Aug 2021 17:19 |
| URI: | https://pure.iiasa.ac.at/8198 |
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