TY - JOUR T1 - Optimal Forest Management with Carbon Sequestration Credits and Endogenous Fire Risk JF - Land Economics JO - Land Econ SP - 155 LP - 172 DO - 10.3368/le.86.1.155 VL - 86 IS - 1 AU - Adam J. Daigneault AU - Mario J. Miranda AU - Brent Sohngen Y1 - 2010/02/01 UR - http://le.uwpress.org/content/86/1/155.abstract N2 - We use a stochastic dynamic profit maximization model to investigate the effects of forest carbon sequestration credits on optimal forest management practices for stands facing wildfire risk. Landowners that periodically thin a stand can increase growth rates and mitigate loss of timber and carbon stocks from wildfire. Results indicate that thinning and shortening rotations are cost-effective strategies to mitigate wildfire risk. Carbon prices cause landowners to delay both their thinning treatments and the final rotation age. Thinning and extending timber rotations are thus a viable climate-change mitigation option even when stands are susceptible to risks of fire. (JEL Q23, Q54) ER -