Lien, G

Stordal, S

Hardaker, John Brian

Asheim, LJ

2007

A new stochastic efficiency analysis approach, called stochastic efficiency with respect to a function (SERF), is applied to analyse optimal tree replanting on an area of recently harvested forest land. SERF partitions a set of risky alternative tree replanting strategies in terms of certainty equivalents (CEs) for a specified range of attitudes to risk. Both the entailed risk and the forest owner's risk aversion are taken into account. The forest owner's degree of risk aversion affects both the optimal tree replacement strategy and the reinvestment decision. The degree of risk aversion also needs to be taken into account when designing policy measures to affect forest investment.

European Journal of Operational Research, 181(3), p. 1584-1592

1872-6860

0377-2217

https://hdl.handle.net/1959.11/6572

Elsevier BV

Risk aversion and optimal forest replanting: A stochastic efficiency study

Journal Article

Publication