Optimal forest stock and harvest with valuing non-timber benefits: a case of US coniferous forests

How much to cut and to remain, as well as when to cut is an important decision-making issue in forest management. Unlike forest age, forest stock and harvest levels are applicable to both plantations and natural forests. This paper investigates the optimal forest stock and harvest with the consideration of both timber and non-timber benefits. The impacts of the discount rate, silvicultural cost, marginal timber benefit, and marginal non-timber benefit on the optimal forest stock and harvest are also examined. The results indicate that forest stock should be thickened when non-timber benefits are valued in addition to timber. The optimal steady state stock increases with a decrease in the discount rate, or an increase in marginal non-timber benefit. However, the impacts of the discount rate, marginal timber benefit, and marginal non-timber benefit on the optimal steady state harvest are ambiguous. In addition, a decrease in the discount rate has the same effect on the optimal steady state stock and harvest as an increase in the ratio of marginal non-timber benefit to marginal timber benefit. These theoretical results are illustrated through an empirical example of the US coniferous forests.