It has been argued from a number of perspectives that the discount rate might decline with increasing period of discounting. With a stepped profile of decline, financially optimal rotations are quite likely to occur at a few discrete ages. For any form of declining discount rate, successor...

In this study a process-based growth model for even-aged Norway Spruce (Picea abies [L.] Karst.) is coupled with economics and optimization to analyze optimal management and cost of carbon sequestration. We extend earlier literature by including detailed timber quality features and optimized...

Similarly to financial risk in markets, physical risk (threat or hazard) has sometimes been treated by adding a premium to the discount rate used for the NPV calculations applied to forestry options. As it happens, a discount rate premium reflecting the rate of threat gives the correct rotation...

The case is often now made that discount rates should decline with time. Underlying reasons include that some kinds benefit (or cost) might be discounted at a lower rate than that used for others: in particular, that rates for carbon values and environmental amenities might be less than that for...