Epsilon Archive for Student Projects

Abstract

The market price of a forest property rarely corresponds with the forest property’s return value. This discrepancy is usually being explained by what is called non-monetary values. By that means values that doesn’t generate returns in money, for example pride of ownership. A forest property’s ability to generate returns is related to several factors that are highly correlated with latitude, such as site fertility, average price of forest estates etc.

The purpose of this study was to analyse the relationship between a forest property’s ability to generate returns and its location in the country. This by creating average forest properties for every county and perform different calculations to make them comparable to each other. The results show that a forest property’s ability to generate returns doesn’t easily can be explained by the latitude. However, some patterns can be identified.