PT  - JOURNAL ARTICLE
AU  - Adam J. Daigneault
AU  - Mario J. Miranda
AU  - Brent Sohngen
TI  - Optimal Forest Management with Carbon Sequestration Credits and Endogenous Fire Risk
AID  - 10.3368/le.86.1.155
DP  - 2010 Feb 01
TA  - Land Economics
PG  - 155--172
VI  - 86
IP  - 1
4099  - http://le.uwpress.org/content/86/1/155.short
4100  - http://le.uwpress.org/content/86/1/155.full
SO  - Land Econ2010 Feb 01; 86
AB  - 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)