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Faustmann's Formula
Faustmann's formula, or the Faustmann model, gives the present value of the income stream for forest rotation. It was derived by the German forester Martin Faustmann in 1849. The ''rotation problem'', deciding when to cut down the forest, means solving the problem of maximising Faustmann's formula and this was solved by Bertil Ohlin in 1921 to become the ''Faustmann-Ohlin theorem'', although other German foresters were aware of the correct solution in 1860. : ƒ(''T'') is the stock of timber at time ''T'' : ''p'' the price of timber and is constant : which implies that the value of the forest at time ''T'' is ''pf''(''T'') : ''r'' is the discount rate and is also constant. The Faustmann formula is as follows: : PV = pf(T) \exp(-rT) \cdot = \frac. From this formula two theorems are interpreted: : The optimal time to cut the forest is when the time rate of change of its value is equal to interest on the value of the forest plus the interest on the value of the land. :The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Present Value
In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is usually less than the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of zero- or negative interest rates, when the present value will be equal or more than the future value. Time value can be described with the simplified phrase, "A dollar today is worth more than a dollar tomorrow". Here, 'worth more' means that its value is greater than tomorrow. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant without the ownership of the asset being transferred, interest is paid to a lender by a borr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Forester
A forester is a person who practises forestry, the science, art, and profession of managing forests. Foresters engage in a broad range of activities including ecological restoration and management of protected areas. Foresters manage forests to provide a variety of objectives including direct extraction of raw material, outdoor recreation, conservation, hunting and aesthetics. Emerging management practices include managing forestlands for biodiversity, carbon sequestration and air quality. Many people confuse the role of the forester with that of the logger, but most foresters are concerned not only with the harvest of timber, but also with the sustainable management of forests. The forester Jack C. Westoby remarked that "forestry is concerned not with trees, but with how trees can serve people". Career United States The median salary of foresters in the United States was $53,750, in 2008. Beginning foresters without bachelor's degrees make considerably less. Those with ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Martin Faustmann
Martin may refer to: Places * Martin City (other) * Martin County (other) * Martin Township (other) Antarctica * Martin Peninsula, Marie Byrd Land * Port Martin, Adelie Land * Point Martin, South Orkney Islands Australia * Martin, Western Australia * Martin Place, Sydney Caribbean * Martin, Saint-Jean-du-Sud, Haiti, a village in the Sud Department of Haiti Europe * Martin, Croatia, a village in Slavonia, Croatia * Martin, Slovakia, a city * Martín del Río, Aragón, Spain * Martin (Val Poschiavo), Switzerland England * Martin, Hampshire * Martin, Kent * Martin, East Lindsey, Lincolnshire, hamlet and former parish in East Lindsey district * Martin, North Kesteven, village and parish in Lincolnshire in North Kesteven district * Martin Hussingtree, Worcestershire * Martin Mere, a lake in Lancashire ** WWT Martin Mere, a wetland nature reserve that includes the lake and surrounding areas * Martin Mill, Kent North America Canada * Rural Municipality of M ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Optimal Rotation Age
In forestry, the optimal rotation age is the growth period required to derive maximum value from a stand of timber. The calculation of this period is specific to each stand and to the economic and sustainability goals of the harvester. Economically optimum rotation age In forestry rotation analysis, economically optimum rotation can be defined as “that age of rotation when the harvest of stumpage will generate the maximum revenue or economic yield”. In an economically optimum forest rotation analysis, the decision regarding optimum rotation age is undertake by calculating the maximum net present value. It can be shown as follows: *Revenue (R) = Volume × Price *Cost (C) = Cost of harvesting + handling. *Hence, Profit = Revenue − Cost. Since the benefit is generated over multiple years, it is necessary to calculate that particular age of harvesting which will generate the maximum revenue. The age of maximum revenue is calculated by discounting for future expected benefit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bertil Ohlin
Bertil Gotthard Ohlin () (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People's Party, a social-liberal party which at the time was the largest party in opposition to the governing Social Democratic Party, from 1944 to 1967. He served briefly as Minister of Commerce and Industry from 1944 to 1945 in the Swedish coalition government during World War II. He was President of the Nordic Council in 1959 and 1964. Ohlin's name lives on in one of the standard mathematical models of international free trade, the Heckscher–Ohlin model, which he developed together with Eli Heckscher. He was jointly awarded the Nobel Memorial Prize in Economic Sciences in 1977 together with the British economist James Meade "for their pathbreaking contribution to the theory of international trade and international capital movements". Biography Bertil Ohlin wa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hotelling's Rule
Hotelling's rule defines the net price path as a function of time while maximizing economic rent in the time of fully extracting a non-renewable natural resource. The maximum rent is also known as Hotelling rent or scarcity rent and is the maximum rent that could be obtained while emptying the stock resource. In an efficient exploitation of a non-renewable and non-augmentable resource, the percentage change in net-price per unit of time should equal the discount rate in order to maximise the present value of the resource capital over the extraction period. This concept was the result of analysis of non-renewable resource management by Harold Hotelling, published in the ''Journal of Political Economy'' in 1931, on the basis of his previous research on depreciation (see Hotelling 1925), which invites us to consider with caution the application of Hotelling's rule to concrete natural resources, in particular fossil fuels (coal, oil, gas). Devarajan and Fisher note that a similar res ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical Optimization
Mathematical optimization (alternatively spelled ''optimisation'') or mathematical programming is the selection of a best element, with regard to some criterion, from some set of available alternatives. It is generally divided into two subfields: discrete optimization and continuous optimization. Optimization problems of sorts arise in all quantitative disciplines from computer science and engineering to operations research and economics, and the development of solution methods has been of interest in mathematics for centuries. In the more general approach, an optimization problem consists of maxima and minima, maximizing or minimizing a Function of a real variable, real function by systematically choosing Argument of a function, input values from within an allowed set and computing the Value (mathematics), value of the function. The generalization of optimization theory and techniques to other formulations constitutes a large area of applied mathematics. More generally, opti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Forest Management
Forest management is a branch of forestry concerned with overall administrative, legal, economic, and social aspects, as well as scientific and technical aspects, such as silviculture, protection, and forest regulation. This includes management for timber, aesthetics, recreation, urban values, water, wildlife, inland and nearshore fisheries, wood products, plant genetic resources, and other forest resource values. Management objectives can be for conservation, utilisation, or a mixture of the two. Techniques include timber extraction, planting and replanting of different species, building and maintenance of roads and pathways through forests, and preventing fire. Definition The forest is a natural system that can supply different products and services. Forests supply water, mitigate climate change, provide habitats for wildlife including many pollinators which are essential for sustainable food production, provide timber and fuelwood, serve as a source of non-wood forest products ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
