Increases in forest land value are occasionally viewed as returns separate from investment returns due to timber harvesting. When treated in this manner, the combined investment return appears to be greater than that obtained from the timber harvest alone. Future forest land values can increase only if timber price increases are anticipated beyond the first rotation. However, such anticipated price increases will be capitalized into higher present land values rather than increase the rate of return. Observed differences in land values over time are consistent with capitalized economic rent theory and cannot be correctly attributed as increases in investment returns. Land shifted to alternative nonforest uses in the future may also demand higher prices. If anticipated, however, such increases will also be reflected in higher present land values. Forest Sci. 26:91-96.
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Bare et al. (1980) studied this question.