Non-renewability in forest rotations: implications for economic and ecosystem sustainability

The forest rotations problem has been considered by generations of economists (Fisher, 1930; Boulding, 1966; Samuelson, 1976). Traditionally, the forest resource across all future harvest periods is assumed to grow without memory of past harvest periods. This paper integrates economic theory and intertemporal ecological mechanics, linking current harvest decisions with future forest growth, financial value, and ecosystem health. Results and implications of a non-renewable forest resource and the influence of rotation length and number on forest recovery are reported. Cost estimates of moving from short-term economic rotations to long-term ecological rotations suggest the level of incentive required for one aspect of ecosystem management. A net private cost of maintaining ecosystem health emerges and, for public policy purposes, can be compared with measures of non-timber amenity values and social benefits exhibiting increasing returns to rotation length.