This special issue contains nine papers presented at the Third International Faustmann Symposium: 'Forest Economics in a Dynamic and Changing World', held in Darmstadt, Germany, during 28-31 October 2009. The papers cover the following thematic areas: climate change and forestry; economics and ...

We think beyond the Pigouvian policy approach for correcting forest ecosystem externalities. Not all ecosystem services in forestry are public goods and deserving of government intervention. Interaction in the market by sellers and buyers concerning payments for ecosystem services is possible. Also ...

We study a rent-based land use problem where a landowner is uncertain about the timing and extent of an emerging biomass market. Unlike other work, ecosystem service flows, in the form of amenities, and transaction costs impact conversion from agriculture or conventional forest to bioenergy, but...

The book presents the historical and classic models that every student or researcher in forest economics must know, including Faustmann and Hartman approaches, public goods, spatial interdependence, two period life-cycle models, and overlapping generations problems. Topics discussed include policy...

This paper contributes to the economics of deforestation by presenting a formal, infinite horizon dynamic model describing the use of tropical forest resources. As an alternative to clearing the forest, a landowner has the option to sell it to an international carbon crediting program. The model is ...

Forestry as a large industry has significant impacts on the quality of forest landscapes in boreal forests. In Finland, the rapid growth of nature-based tourism has expanded tourism and outdoor recreation activities from protected areas into commercial forests, especially in northern Finland. This...

Village democratization in rural China is found to have profound impacts on many socio-economic aspects, but little is understood as to how welfare impacts may occur through farmers' principal production activities. This study helps to fill this gap by investigating how village democracy affects...

We examine the optimal length of a contract period in a conservation program with payments for ecosystem services aiming at protecting biodiversity on privately owned forests. The government chooses the number of stands and the length of contracts so as to maximize biodiversity benefits under a...

We develop a model of optimal land allocation in a developing economy that features three possible land uses: agriculture, primary and secondary forests. The distinction between those forest types reflects their different contributions in terms of public goods. In our model, reforestation is costly ...

The nonindustrial private forest (NIPF) owner's consumption and harvesting decisions are investigated under inheritance and capital income taxes using a two-period model. The impact of the forest-owner's age is introduced into the analysis through a parameter of perceived probability of surviving...