We continue to discuss the economics of natural resources in this lecture, with a particular focus on timber rotations. In the previous lecture, we introduced the biological rotation, which maximizes the mean annual increment (MAI). In this lecture, we introduce the time-value of money with the Wicksell and Faustmann Rotations (where the latter adds in the effect of opportunity cost from alternative uses of the site). We will continue this discuss in the next lecture, when we also add in habitat value.
Whiteboard notes for this lecture can be found at: https://www.dropbox.com/s/iy1qu95cxv61tgv/LectureD5-2020-11-10-Economics_of_Renewable_Natural_Resources-Part_2.pdf?dl=0
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