Abstract
Abstract The conventional forest investment assessment at the stand level has difficulty dealing with multiple decisions and capturing the operational flexibility involved in timber production. By combining forest-level analysis with the options valuation approach, this article suggests a new framework for forestry investment assessment. We first articulate the new framework and discuss a few technical issues encountered in adopting it. Then, we present three empirical examples (entry decision, land acquisition, and harvest timing) to illustrate how forest-level analysis and/or real options valuation can be done and what we may learn from this type of exercise. We believe that while adopting this new framework entails challenges, it represents a great opportunity to expand the field of forest investment assessment. FOR. SCI. 47(4):475–483.
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
