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 ...

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 explore the optimal regulation of forest carbon and albedo for climate change mitigation. We develop a partial equilibrium market-level model with socially optimal carbon and albedo pricing and characterize optimal land allocation and harvests. We numerically assess the policy's market-level...

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...

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...

Forest industry has undergone profound changes since the 1990s. Industry-level consolidation and the rise in international investments are the most noticeable features of this process. Based on reviewing internationalization from internalization and transaction cost, resource based, industrial...

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 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...

Sequestering carbon in forests and wood products is an inexpensive way to reduce the atmospheric carbon concentration. However, its full potential is not utilized in present climate policies. Optimizing sequestration, while continuing to harvest wood for materials and energy, could reduce the...

This paper examines the present conditions and future potentials of the Russian forest industries. The severity of the current crisis is illustrated by relating the recent decline in production of the Russian forest industries to the production declines caused by the Second World War. Figures are...