Three different option value approaches are used to estimate the value of a typical New Zealand plantation stand, under the assumption that log prices follow a random walk. Crop values are compared with the Faustmann value, the benchmark for forest valuation in New Zealand. The increase in...

The New Zealand Government has enacted an emissions trading scheme (ETS) under which owners of Kyoto-compliant forests will receive/surrender units for increases/decreases in the carbon stocks of their plantations. Each unit represents one tonne of carbon dioxide (CO2) and can be traded. In this...

Stochastic Dynamic Programming is used to determine the expected bare land value under the New Zealand ETS (Emissions Trading Scheme) with both log prices and carbon prices following a random walk. This value is substantially higher than the Faustmann NPV. This is in contrast to the situation...

Prominent trade disputes between Canada and the United States involve agriculture and forestry, with lack of transparency caused by Canadian non-market institutions a source of US objections. We examine lessons from the lumber dispute to shed light on US objections to the Canadian Wheat Board...

In Canada, where public ownership of forestland is prevalent, a central decision facing policy makers is how to allocate timber resources to private forest companies. Debates tend to focus around what proportion of the annual harvest should be devoted to markets as opposed to long-term...

We examined the productive efficiency of the interior sawmilling industry in British Columbia using stochastic frontier analysis. Prior sawmilling studies using this method have neglected the multi-output nature of sawmills. To accommodate both lumber and chips as outputs, we used a ray...