Martin Faustmann

Martin Faustmann was a German forester who is regarded as the father of forest economics.

His 1849 analysis of the optimal rotation problem, often referred to as the Faustmann formula, remains in widespread use in natural resource valuation and policy analysis, and continues to be a topic of active research. He completed his examinations in 1848 and became the chief forester of Dudenhofen near Darmstadt, where he remained until his death. Because it accounts for the time value of money (or the opportunity cost of delaying a harvest), the financially optimal Faustmann rotation is generally shorter than the biologically optimal rotation age.