
Timberland investment under both financial and biophysical risk
Publication
, Journal Article
Mei, B; Wear, DN; Henderson, JD
Published in: Land Economics
January 1, 2019
We extend real options analysis of timberland investments to examine a combination of financial and biophysical risk effects on optimal investment strategies in the southeastern United States. Results show that, despite a slight downward drift in price, expected returns for loblolly pine management fall between entry and exit thresholds, indicating an optimal "hold" strategy. This is explained by an offsetting upward trend in biophysical productivity associated with climate changes across a range of modeled futures. Monte Carlo analysis indicates a small positive difference between entry and exit outcomes consistent with observed rates of expansion in timberland investments in the region.
Duke Scholars
Altmetric Attention Stats
Dimensions Citation Stats
Published In
Land Economics
DOI
EISSN
1543-8325
ISSN
0023-7639
Publication Date
January 1, 2019
Volume
95
Issue
2
Start / End Page
279 / 291
Related Subject Headings
- Agricultural Economics & Policy
- 3801 Applied economics
- 1402 Applied Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Mei, B., Wear, D. N., & Henderson, J. D. (2019). Timberland investment under both financial and biophysical risk. Land Economics, 95(2), 279–291. https://doi.org/10.3368/LE.95.2.279
Mei, B., D. N. Wear, and J. D. Henderson. “Timberland investment under both financial and biophysical risk.” Land Economics 95, no. 2 (January 1, 2019): 279–91. https://doi.org/10.3368/LE.95.2.279.
Mei B, Wear DN, Henderson JD. Timberland investment under both financial and biophysical risk. Land Economics. 2019 Jan 1;95(2):279–91.
Mei, B., et al. “Timberland investment under both financial and biophysical risk.” Land Economics, vol. 95, no. 2, Jan. 2019, pp. 279–91. Scopus, doi:10.3368/LE.95.2.279.
Mei B, Wear DN, Henderson JD. Timberland investment under both financial and biophysical risk. Land Economics. 2019 Jan 1;95(2):279–291.

Published In
Land Economics
DOI
EISSN
1543-8325
ISSN
0023-7639
Publication Date
January 1, 2019
Volume
95
Issue
2
Start / End Page
279 / 291
Related Subject Headings
- Agricultural Economics & Policy
- 3801 Applied economics
- 1402 Applied Economics