A bioeconomic approach to the Faustmann-Hartman rule: ecological interactions and even-aged forest management

Julia M. Touza, Mette Termansen, Charles Perrings

Research output: Contribution to journalArticlepeer-review


This paper develops a bioeconomic forestry
model that makes it possible to take ecosystem services that
are independent of the age structure of trees into account. We
derive the Faustmann–Hartman optimal harvesting strategy
as a special case. The bioeconomic model is then extended to
account for the fact that forest harvesting decisions impact on
other ecological resources, which provide benefits for the wider
community. The paper focuses on impacts associated with disturbance
caused by logging operations and habitat destruction
due to tree removal. This enables us to explore the interactions
between forest management and the dynamics of ecological resources.
The optimal rotation rule is obtained as a variation on
the traditional Faustmann–Hartman equation, where an additional
term captures the potential benefits derived from the
growth of the ecological resource valued at its shadow price.
The steady-state solutions to the problem and sensitivity to
model parameter are identified using numerical analysis.
Original languageEnglish
Pages (from-to)551 – 581
Number of pages31
JournalNatural Resource Modeling
Issue number4
Publication statusPublished - 2008


  • Bioeconomic model
  • Faustmann–Hartman
  • forest management
  • non-timber benefits
  • rotation age
  • habitat effect
  • natural resource management

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