A classical problem in forestry is the determination of the optimal rotation. This problem was solved during the 19th century, by German forest mathematicians. Martin Faustmann deserves some of the fame. However, he did not explicitly derive the conditions for an optimal solution. His contender...

This paper examines the effect of risk aversion on the optimal rotation age when the stumpage price is stochastic. Using a mean-variance approach, we show that the optimal rotation age under risk aversion may be lower than, equal to, or higher than the corresponding optimal rotation age under...

Previous studies have reported significant gains from adaptive harvest strategies when future timber prices are uncertain. For the final harvest decision in even-aged stand management, the adaptive strategy typically means that a stand is harvested only when the timber price is high, whereas low...

This paper examines the effect of risk-aversion on the short-run supply of timber, when the harvest revenue can be invested in a risk-free and a risky asset. It turns out that recognition of the risky investment alternative invalidates the previously reported effect of risk-aversion on short-run...

This paper is concerned with the modern theory of social cost-bene.t analysis in <p> a dynamic economy. The theory emphasizes the role of a comprehensive, forward- <p> looking, dynamic welfare index within the period of the project rather than that <p> of a project.s long-term consequences. However, what...</p></p></p>

This paper concerns international coordination of environmental taxation. The main purpose is to study the global welfare effects that will arise, if there is an agreement between countries to slightly increase their emission taxes. We show that even if each individual country has chosen its...

This paper contains a fairly brief, but self-contained, version of the history of welfare economics, as well as the more modern welfare results. We introduce public goods and asymmetric information, and we hint at some of the modern mechanism design results. The paper also contains a section on...

This paper is concerned with the choice of metrics for social cost-benefit analysis and dynamic welfare comparisons. In a utility-theoretic framework, we show that there is always a money measure that can serve as a substitute for the maximized utility wealth. Thus, under the non-arbitrage...

Following the 1987 report by The World Commission on Environment and Development, the genuine saving has come to play a key role in the context of sustainable development, and the World Bank regularly publishes numbers for genuine saving on a national basis. However, these numbers are typically...

This paper studies how envelope theorems have been used in Economics, their history and also who first introduced them. The existing literature is full of them and the reason is that most families of optimal value functions can produce them. The paper is driven by curiosity, but hopefully it...