Next Article in Journal
The Impact of Industrial Context on Procurement, Management and Development of Harvesting Services: A Comparison of Two Swedish Forest Owners Associations
Previous Article in Journal
White Spruce Plantations on Abandoned Agricultural Land: Are They More Effective as C Sinks than Natural Succession?
Article Menu

Export Article

Open AccessArticle

Risks, Information and Short-Run Timber Supply

Joint Research Centre, European Commission (JRC), Via E. Fermi, 2749 I-21027 Ispra, Italy
Author to whom correspondence should be addressed.
Forests 2013, 4(4), 1158-1170;
Received: 8 October 2013 / Revised: 26 November 2013 / Accepted: 5 December 2013 / Published: 11 December 2013
PDF [474 KB, uploaded 11 December 2013]


Efforts to increase wood mobilization have highlighted the need to appraise drivers of short-run timber supply. The current study aims to shed further light on harvesting decisions of private forest owners, by investigating optimal harvesting under uncertainty, when timber revenues are invested on financial markets and uncertainty is mitigated by news releases. By distinguishing between aggregate economic risk and sector specific risks, the model studies in great detail optimal harvesting-investment decisions, with particular emphasis on the non-trivial transmission of risk on optimal harvesting, and on the way private forest owners react to news and information. The analysis of the role played by information in harvesting decisions is a novelty in forest economic theory. The presented model is highly relevant from a policy—information is a commonly used forest policy instrument—as well as a practical perspective, since the mechanism of risk transmission is at the basis of timber pricing. View Full-Text
Keywords: wood mobilization; timber supply; decision; uncertainty; risk; information; portfolio; financial market wood mobilization; timber supply; decision; uncertainty; risk; information; portfolio; financial market
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Share & Cite This Article

MDPI and ACS Style

Rinaldi, F.; Jonsson, R. Risks, Information and Short-Run Timber Supply. Forests 2013, 4, 1158-1170.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Forests EISSN 1999-4907 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top