1. Land price & Land rent Definition

2. Examples – David Ricardo 1) Differences in the fertility of land. If there is single land grade, no rent accrues. – Von Thunen Distance from crucial location, Central Business District.

4. Timber harvest Link PET results to ISAM/CLM – Need to check what types of harvest we need: from Primary vs Secondary or doesnt matter Timber harvest – Secondary (managed timber) harvest land input($) in PET vs physical harvested hectares – Primary (unmanaged timber) harvest How and when: No land values ($), access cost

5. Issue of Secondary timber harvest Land rent in forest Net present value of timber land= P: stumpage price V: volume of tree (yield) r= interest rate a= rotation age C= harvest cost Example of simplification: – If optimal rotation age is 30 years, the annual harvest is the one 30 th of total harvested area.