TITLE:
Optimal Stochastic Pine Stands Harvest Rotation Policies
AUTHORS:
Eduardo Navarrete
KEYWORDS:
Optimal Tree Cutting, Faustmann Stochastic Formula Component, Optimal Stopping Problem
JOURNAL NAME:
Open Journal of Forestry,
Vol.5 No.6,
August
6,
2015
ABSTRACT: A new Faustmann optimal rotation harvesting stands’ problem under Brown geometric price and Logistic and Gompertz wood stock, diffusions is presented. The optimal cut policies for the stochastic Faustmann model and the single harvest rotation or Vicksell model are evaluated in the case of a Chilean Radiata pine forest company. The company cut policy validates the Vicksell model, its optimal cut policies overestimate the company policy cut in 1.2%, in the Gompertz case, and underestimate it in 2.3%, in the Logistic case. The Faustmann optimal cut policies present a larger underestimation of the company cut policy in 10.1%, in the Gompertz case, and in 21.5%, in the Logistic case. The preference for shorter evaluation period that the company shows is due to the organizational risk that the forest economic sectors has in Chile.