A Model of Timber Rotations and Land Prices on Private Forests Producing Nontimber Outputs

Abstract

This paper presents a model of timber rotations and land prices on private forests producing both timber and nontimber (amenity) outputs. The model treats amenities produced by timber stands of different ages as heterogenous commodities, eliminating the need for an amenities production function. Prices for amenities are determined indirectly in land markets. Amenities prices adjust to equalize the bare land value for properties managed on different rotations, allowing optimizing landowners to harvest timber over a wide range of rotation ages. The model helps explain variation in private forest management practices and suggests that amenities should be taken into account in modeling timber supply.