This paper investigates the joint production of timber and biodiversity by non-industrial private forest owners using a micro-econometric household production model. The objective is to explain the relationships between harvesting, timber price and the diversity of tree species. A two-step estimation procedure is implemented by fi rst estimating the diversity demand equation and then thetimber supply equation in which the predicted value of diversity is a regressor. From a database of uneven-aged forests in France, we use cluster-sample econometric methods for an error component structure allowing for a multi-species framework. Results show that timber and species diversity are substitutes and that timber price positively a ffects diversity.
