Extension of the Faustmann formula for tree economic calculations; illustrations in the case of beech forest in the North-East of France

Document Type : Research article

Authors

1 PH.D. in forest economics and management, Faculty of Natural Resources, University of Tehran

2 Director of Public Interest Group (GIP) on Forest Ecosystems (ECOFOR)

Abstract

The decision on the tree scale constitutes smallest and the most concrete scale of decision in forest management. All decisions concerning of the forest trees (cut, selection of species, etc.) are often found on the basis of the technical and economic considerations. The tree economic model is a valuable tool which integrates all the economic considerations to help all decisions on the tree scale. The determination of the future value of the various species, the exploitation diameter and the amplitude of the damage to trees could be evaluated by the tree economic model. The tree economic model also makes it possible to study the effect of various factors (diameter, method and density of exploitation) on the tree future value. Moreover, as the stand is a whole of trees, the tree economic model could be transformed into a stand economic model. In spite of the importance of the tree economic model, there is only a little research on this topic. In this article, on basis of Faustmann economic model, a tree economic model is presented. In order to present certain examples of application of the proposed model, we used the necessary data from simulation of the corresponding models calibrated in the case of the beech in the North-East in France. This study shows that the optimal exploitation diameter of the good quality trees of the beech in the irregular stand with average productivity (7.5 m3/ha) is 70 cm. Moreover, the application of the model in the calculation of damage to a tree of 25 cm shows that the calculated damage is more than ten times higher (36 Euros) that its market value (3 Euros). Indeed, the damage to a future tree is higher than its market value because of his higher value at financial maturity. 

Keywords

References

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