Question: Problem 3: Socially Optimal Forest Rotations with Non-timber values Now suppose that the forest that you are considering to plant provides a non-timber value of

Problem 3: Socially Optimal Forest Rotations with Non-timber values

Now suppose that the forest that you are considering to plant provides a non-timber value of sequestering carbon. Assume that the per-period value of carbon sequestration depends linearly on the volume of the forest and is equal to a(t) = vt. The stream of discounted non-timber values from t = 0 to t = T is thus:

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