A two-option Approach to Solving the Decision problem of Regeneration

Real option theory has for some decades been used in forest economics to analyse decision problems which involve irreversible and stochastic decisions. One such decision is when to harvest a stand and with what species to regenerate. The latter decision can be postponed for some time, making a species change possible if favoured by the value development or if regeneration of the present species is unsuccessful. This problem is analysed here as extension of the traditional two-option problem, by involving several stochastic elements.


Issue Date:
2004-05
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/197901
Published in:
Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics
2004, Number 40
Page range:
23-32
Total Pages:
11




 Record created 2017-04-01, last modified 2017-08-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)