While forest economists usually take optimal rotation to be that which maximises land expectation value, forest biologists prefer concepts related to maximum sustainable yield, or forest rent. This paper intends to evaluate the contrasting claims.It has been argued that forest rent is the correct economic criterion for a forest constrained to maintain a normal age class structure. But this result depends on the endowment embodied in alternative age-class structures. Hence, the approach adopted here is to consider the economic value, starting from a common state of age class structure, of the alternative rotations. Beginning with “bare land”, and using a representative yield model, the rotation of maximum land expectation value is superior. Starting from a given existing normal forest, without differential endowment, and allowing for rotation to be changed, the creation of economic optimum entails step-wise switching to the rotation of maximum land expectation value – or even somewhat shorter. This reflects the results produced by earlier authors, who used different data and different modelling methods.
Colin Price (Tue,) studied this question.