An Empirical Examination of Optimal Rotations in a Multiple-Use Forest in the Presence of Fire Risk

Fires are an important and natural component of forest ecosystems that affect the timber value of forests, and thus optimal rotations. Fire also affects amenity values provided by forests. This analysis examines the relationships among forest fire risk, timber values, and amenity values in a Faustmann rotation framework. An empirical application of the model is presented where jack pine growth in the Canadian Shield region is integrated with the nonmarket values associated with wilderness recreation. The results suggest that while the rotation period of jack pine is shorter in the presence of fire risk, the inclusion of this particular amenity would lengthen rotation periods. The level of visits to the wilderness area has a significant effect on the rotation period. Failure to account for backcountry recreation in rotations of forests in multiple-use wilderness areas of the Canadian Shield would result in suboptimal management.