Faustmann's Rule of Optimal Rotation

Initializing live version
Download to Desktop

Requires a Wolfram Notebook System

Interact on desktop, mobile and cloud with the free Wolfram Player or other Wolfram Language products.

The German forester Martin Faustmann solved the rotation problem, maximizing the present value of the income stream for forest rotation. The optimal solution is expressed by , where is the optimal rotation period, is the unit profit of harvesting, and δ is the discount rate. Since a new forest stand cannot be planted before cutting down the previous one, land area becomes a scarce good and the optimal rotation period will be shorter than the time period maximizing the present value for a single stand.

Contributed by: Arne Eide (January 2014)
Open content licensed under CC BY-NC-SA




Feedback (field required)
Email (field required) Name
Occupation Organization
Note: Your message & contact information may be shared with the author of any specific Demonstration for which you give feedback.