Forest Taxation and Cutting Behaviour∗

Abstract: Most of the results on forest taxation have been obtained in the Faustmann rotation framework. However, this framework applies to clear-cut forests only. We repre-sent selective cuttings and revisit the validity of the forest taxation literature under this alternative behaviour. By the help of an optimal impulse control model we show that the taxes do not affect rotation time only, but also average forest stocks and the amplitude of cuttings