Abstract
Abstract This paper provides a detailed analysis of timber harvest decisions under price uncertainty. Specifically, the relationship between timber supply—in the sense of whether to bring harvest to the market now or in the future—and various forest taxes is analyzed by using an intertemporal consumption-savings model, which is extended to allow for harvesting decisions. In the presence of perfect capital markets and certainty, harvesting decisions of nonindustrial forest owners are independent from their consumption preferences. However, under future timber price uncertainty and risk aversion, harvesting decisions depend on the consumption preferences of forest owners. The implications of this nonseparability between consumption and harvesting decisions are developed for various individual forest taxes as well as for various changes in the structure of forest taxes, which will keep the government's tax revenue constant. Due to the nonseparability, harvest responses to changes in tax rates and in the structure of taxes may differ considerably from those under certainty. For. Sci. 35(1): 137-159.
Sign-in/Register to access full text options 
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.
