Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
481938 | European Journal of Operational Research | 2007 | 9 Pages |
Abstract
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.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
G. Lien, S. Størdal, J.B. Hardaker, L.J. Asheim,