We study forestry in the Sámi people homeland to understand an ongoing conflict between conventional forestry and maintaining forests as reindeer pastures vital for indigenous Sámi livelihood. ...Conventional logging affects pastures by creating stand densities suboptimal to lichen growth and by decreasing old-growth forest areas, both of which are essential to reindeer survivability during the subarctic winter. Our model includes timber production, carbon sequestration, externalities on reindeer husbandry, and optimization between rotation forestry and forestry with continuous forest cover. We show that the profitability of conventional forestry relies on utilizing existing forests, an outcome we label as forest capital mining. By varying the carbon price between €0 and €60 per tCO2 and assuming a 3% interest rate, we show that continuous cover forestry, which better preserves pastures, is always optimal. A carbon price of €60−€100 chokes off timber production. Given the present management practices and an old-growth forest as the initial state, the carbon choke price decreases to €14–€20. Our economic analysis on maintaining old-growth forest versus conversion to timber production is an alternative to the frequently applied approach based on carbon debts and carbon payback periods.
Using an extended full-cycle carbon model from the Faustmann framework, which allows for management strategies of several uses concurrently implemented in the same area of forest, this paper ...investigates the selection of management objectives that are beneficial and optimal for forest plantations in Vietnam. Three scenarios are considered: Scenario 1 investigates the management objective of maximizing the land economic value (LEV) of timber as a single production. Scenario 2 investigates the joint production of timber and bioenergy sources. Scenario 3 analyzes the joint production of timber, bioenergy production, and carbon sequestration. The findings reveal that if growers pursue a timber management objective (Scenario 1), the farming business only provides considerable benefits under the government-subsidized credit scheme of 8.4%. For a higher non-subsidized interest rate of 15.24% of commercial banks, such gains reduce substantially and become negative value under the mean interest rate of 19.08% of private credit sources. Altering the management objective to a joint production of timber and raw bioenergy production (Scenario 2) will boost the LEV by a moderate level, but at the expense of timber production and thus carbon stock. However, the reduction tendency of timber and carbon balance is not substantial due mainly to the relatively small proportion of bioenergy production compared to timber production; therefore, decision-making frameworks targeting carbon uptake may be capable of incorporating such levels of confliction. Further internalizing the carbon value of the forest into management objectives generally leads to a longer rotation length, thus improving both carbon sequestration and income gains. Shifting the current timber-dominant management objective to a joint production of timber and bioenergy sources, or, alternatively, a joint production of timber, bioenergy production, and carbon sequestration when the carbon market is emerging, is a good alternative strategy for forest management in Vietnam.
Tropical forest plantations play an important role in meeting global wood demand. While research has highlighted the ecological potential of mixed-species plantations, studies on the economic ...viability and management of such plantations are largely missing in the context of tropical plantation forestry. In this study, we estimated the economic potential and optimized the management of commercial mixed-species plantations of four tree species native to Central America (
Dalbergia retusa
,
Dipteryx oleifera
,
Hieronyma alchorneoides
, and
Vochysia guatemalensis
) and Teak (
Tectona grandis).
We combined the forest growth model
3-PGmix
and detailed economic data for two plantation sites in Costa Rica to optimize the management of 11 different mixtures using a genetic optimization algorithm. We found that several of the modeled mixed-species stands can be highly profitable with net present values (NPV) up to 4821.2 USD/ha at an 8% discount rate, and internal rates of return up to 17% (under excellent site conditions). This indicates that the most profitable mixtures (e.g. of
V. guatemalensis-D. oleifera
or
T. grandis-D. oleifera
on excellent sites) could compete economically with conventional monoculture plantations such as Teak monocultures. Further, mixed stands can be managed based on the same simple even-aged management approaches currently applied in monoculture plantations if the specific management parameters are adapted. The optimized management parameters also lead to improved NPV of the modeled stands under alternative valuation assumptions but are site-specific. In the present study, we only considered financial benefits from timber production. However, establishing mixed-species plantations in the tropics could provide a wide range of ecosystem services including climate change mitigation and biodiversity protection.
•We explored effective simulated annealing implementations for thinning scheduling.•32 implementations were adapted for four benchmark yield models.•The implementations’ performance were evaluated ...with 625 different parameter sets.•An energy function was devised to limit the range of temperature parameters.•The best implementation for daily usage by foresters was identified.
We explored the most effective implementation of simulated annealing (SA) to optimize thinning schedules for single even-aged stands, with respect to the reliability of optimality. To enable foresters to use this implementation in a variety of situations, four yield models were set as benchmarks. We defined 32 implementations, each a different combination of variable control methods, proposal densities, cooling functions, and controlling the width of the proposal density. We tested these implementations using 625 SA parameter sets, resulting from the combination of five values each for initial and final temperature, the number of temperature levels, and proposal density width. We defined an energy function that enables us to predict potentially appropriate ranges of temperature parameters that relate to minimum acceptance rate. We ran each implementation 40 times for each yield model with each parameter set. To evaluate the reliability of SA under optimal parameters, we compared the objective values for the 40 runs using the best parameter set between implementations. To evaluate robustness under suboptimal parameter settings, we compared the variation in the mean objective values for all parameter sets between implementations. The variable control method significantly affected the reliability of SA under optimal parameters. Use of the Cauchy distribution for proposal density improved robustness under suboptimal parameter settings. The widths of proposal densities were better controlled when not taking temperature into account. The effect of cooling-function choice was relatively non-significant. We identified the implementation that appears best for both evaluations, and discussed the adjustment of its parameters.
ABSTRACT Before performing any financial analysis costs must be calculated. These costs should allow the planning and control over the use of the machines as well as the comparison between different ...investments alternatives since this is easily calculated. Generally the operating costs of forest harvesting machines are estimated until the maximum of 25,000 hours of work, and it is not possible to know whether the activity remains profitable thereafter or not. For this reason the objective of this study was to evaluate the costs from cutting activities and wood processing carried out by a forestry tractor harvester up to approximately 30,000 hours of work. Ten forest machines composed of two models of harvester (John Deere, model 1270D and 1470D) were used. A spreadsheet provided by a forestry company located in the state of Minas Gerais, containing the necessary data to estimate the operating cost of the machines and subsequent achievement of the sensitivity analysis was used. The operating cost was obtained by the sum of the fixed and variable costs. For sensitivity analysis the variation ± 20% of the most representative elements of the total cost of the machine was performed. The results for the operating cost of the harvester and forwarder was U.S. $ 190.85 h-1. Costs for repairs and maintenance, labor, fuel, and depreciation represented approximately 90% of the total cost of the machine. Despite the fact that the age of the machine has a direct influence on its operating cost, the costs did not behave in a linear fashion over the years.
RESUMO Antes da realização de qualquer análise financeira é necessário que os custos sejam computados. Os custos devem permitir além do planejamento e controle do uso de máquinas a comparação entre diferentes alternativas de investimento, sendo facilmente calculados. Geralmente os custos operacionais de máquinas de colheita florestal são estimados até no máximo 25.000 horas de trabalho, não sendo possível saber se atividade continua rentável após esse período. Por este motivo objetivou-se com este trabalho, avaliar os custos provenientes da atividade de corte e processamento da madeira realizada pelo trator florestal harvester até aproximadamente 30.000 horas de trabalho. Foram utilizadas 10 máquinas florestais compostas por dois modelos de harvester (John Deere, modelos 1270D e 1470D). Foi utilizada a planilha fornecida por uma empresa florestal situada no estado de Minas Gerais, contendo os dados necessários para a estimativa do custo operacional das máquinas e posterior realização da análise de sensibilidade. O custo operacional foi obtido por meio do somatório dos custos fixos e variáveis. Para a análise de sensibilidade foi realizada uma variação de ± 20% dos elementos mais representativos do custo total da máquina. Os resultados obtidos para o custo operacional médio geral do harvester foi de US$ 190,85 h-1. Os custos com manutenção e reparos, mão de obra, combustível, e depreciação representaram aproximadamente 90% do custo total da máquina. Apesar da idade da máquina ter influência direta sobre o custo operacional da máquina, os custos não se comportaram de forma linear com o passar dos anos.
► China has taken steps to further devolve its collective forestland and modify its forest policy. ► There have been inconsistencies, conflicts, and maladaptations in the process, however. ► This ...paper assesses the advances and challenges that China's reforms have engendered. ► Dealing with the challenges will need to understand effective forest governance.
Since 2003, a new round of forest tenure and institutional reforms has been undertaken in China, featuring both further devolving the use rights of collectively owned forestland and relaxing government control over community forest operations. While some major changes have taken place, a lot more needs to be properly implemented and many other adjustments must be made to improve the efficiency and productivity of the forest ecosystems and the wellbeing of the local people. So far, however, limited attention has been devoted to documenting what has been implemented, assessing whether the measures taken are appropriate, and elucidating what remains to be pursued. This paper intends to fill these knowledge gaps from the theoretical and practical perspectives of institutional economics and forest policy. It is hoped that these efforts will contribute to the long-term success of China's latest initiatives as well as the international deliberations over forest decentralization and institutional transformation.
For several reasons the conversion of mono-species into mixed-species forests is presently a major concern of forest management and policy in Central Europe. Although it is possible to show a clear ...trend in favour of mixed-species forests, private forest owners and some forest economists have often not favoured mixed forests, assuming that they are less profitable. The trend towards mixed forests seems mainly for ecological reasons, while sound economic analysis of mixed forests is still rare. Based on this background the objective of the study is to answer the following four questions: (1) Does the yield of mixed-species forests differ from that of pure forests? (2) Does the mixing of tree species influence the ecological stability of forests? (3) Is the economic value of a mixed forest less than that of a monoculture? (4) How do forest economic models integrate the findings on yield and ecological stability of mixed forests? To answer these questions a literature review was conducted on the possible impacts of mixed-species forests. In comparison to pure stands a greater yield is not necessarily given in mixed stands. Yet, mixed-species stands are better able to compensate disturbances than monocultures. Moreover, there is substantial evidence that mixed-species stands are more resistant against biotic and abiotic disturbances. Applying an extended forest economic model, it was possible to demonstrate that mixing large blocks of native broadleaf species into pure conifer forests may lead to a significant reduction of financial risk. From a risk-averse perspective the economic value of a mixed-species forest may thus be greater than that of a mono-species forest. Yet, it became clear that forest economists do not often integrate the research findings on yield and ecological stability of mixed stands in modelling, but rather apply simple bioeconomic modelling. Moreover, in the context of mixed forests economists also largely ignore even classical financial approaches, which consider risk and risk preferences. We concluded that forest economics has to close substantial research gaps. Firstly, the knowledge of how to integrate biophysical properties of mixed forests in bioeconomic modelling is still an open question. Secondly, forest economists have to adopt the modern approaches of financial theory and management science to value mixed forests.
Landowners and foresters often complain about the impact of taxes on the profitability of growing trees. This study examines the effect on forest profitability of the multiple taxes levied on ...non-industrial private forestland in the Southeastern United States. We look at the percent reduction in land expectation value as property, severance, state and federal income taxes are levied on a representative acre of forestland. Results for the 10 Southeastern states included in the study reveal reductions in land expectation value ranging from 32% to 63% once the various taxes are levied on a site index 70 site. This demonstrates that the effect of taxes does vary widely within the states, evaluated both when individual and combined taxes are considered.
Russia owns one-fifth of the world’s forest-covered area but has never been the leader of the global forest sector nor in gross output or relative productivity. The issues of the Russian forest ...sector have attracted research attention, but for many topics, this is still a green field on the map of sectoral studies. We developed a novel approach to understand the primary causes of the inefficiency of the Russian forest policy through the qualitative assessment of completeness and reliability of forest sector-related data. The main output of this paper is a thorough overview of the available sources of data with an assessment of their quality, completeness and reliability. We show that the Russian official forest sector statistics provide only basic indicators for very short periods with few observations being incomplete and inconsistent. Besides a critical analysis of the official statistics, we also discover some known, but still underemployed, resources of information on the Russian forest sector: textual information of official public bodies and companies, accounting records, remote-sensing data, etc. Finally, we discuss the possible ways to improve the data procurement of the forest sector in Russia to support future decision-making. We are convinced that a prerequisite for the implementation of effective forest policy in Russia is a significant expansion and improvement of the volume and quality of statistics on the dynamics of Russian forests and forest economy. Integration of existing and new data sources is necessary to achieve synergistic effects, both in terms of deepening the understanding of key business processes in the industry and in the sense of solving strategic tasks of its development.
We address the problem of how to integrate risk assessment into forest management and therefore provide a comprehensive review of recent and past literature on risk analysis and modeling and, ...moreover, an evaluation and summary on these papers. We provide a general scheme on how to integrate concepts of risk into forest management decisions. After an overview of the risk management process and the main hazards in forests (storm, snow, insects, fire), the paper focuses on the principal methods used to assess risks from these hazards for commercial forestry. We review mechanistic models, empirical models, and expert systems and consider the needs for different spatial scales of risk assessment, from the regional to the single-tree level. In addition to natural hazards and their secondary effects, we deal with economic aspects of risk analysis. Monte Carlo simulations to deal with volatile timber prices and ways to include risk in classical Faustmann approaches are briefly discussed along with the integration of portfolio theory into forest management decision making and attitude toward risk. Special attention is paid to the implications for risk modeling under climate change.
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