When is the Optimal Economic Rotation Longer than the Rotation of Maximum Sustained Yield

Abstract Contrary to the assertions of many, the rotation which maximizes the net present value of timber receipts may be longer than the rotation which maximizes average annual physical yield. This circumstance may arise even in a very simple economic model once regeneration and management costs are recognized. The most interesting situations arise with short rotation, fast growing species. Along with a theoretical comparison of the two rotation criteria, an example using Pinus patula plantations in Tanzania demonstrates the potential practical importance of this conclusion.