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The infinitely worried forest owner key biotopes and forest certification in a Faustmann model
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- Kriström, Bengt (author)
- Umeå universitet,Swedish University of Agricultural Sciences,Sveriges lantbruksuniversitet,Institutionen för skogsekonomi,Department of Forest Economics,Centre for Environmental and Resource Economics (CERE),Umeå University,Centrum för miljö- och naturresursekonomi (CERE),SLU, Umeå, Sweden
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- Johansson, Per-Olov (author)
- Umeå universitet,Stockholm School of Economics,Handelshögskolan i Stockholm,Centrum för miljö- och naturresursekonomi (CERE),Stockholm School of Economics, Stockholm, Sweden
- (creator_code:org_t)
- Now Publishers, 2020
- 2020
- English.
- In: Journal of Forest Economics. - : Now Publishers. - 1104-6899 .- 1618-1530. ; 35, s. 69-73
- Journal article (peer-reviewed)
Abstract
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- In this note, we consider a case when a forestry property may lose its market value through "political risk", illustrated here by it being classified as containing a key biotope. If a key biotope is found on a forest property in Sweden, the wood is almost impossible to sell. We show how the Faustmann formula is modified in this case and identify a "balance sheet" effect and a shortened rotation period. The theory seems to have some empirical support, given observed changes in bank lending contracts and alleged changes in forester's behavior to reduce the "political risk".
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
- LANTBRUKSVETENSKAPER -- Lantbruksvetenskap, skogsbruk och fiske -- Skogsvetenskap (hsv//swe)
- AGRICULTURAL SCIENCES -- Agriculture, Forestry and Fisheries -- Forest Science (hsv//eng)
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Business Administration (hsv//eng)
- SAMHÄLLSVETENSKAP -- Annan samhällsvetenskap -- Övrig annan samhällsvetenskap (hsv//swe)
- SOCIAL SCIENCES -- Other Social Sciences -- Other Social Sciences not elsewhere specified (hsv//eng)
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- art (subject category)
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