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The ability to predict growth and potential yield is essential for planning forest management. Here we developed a narrow size-class diameter model to simulate growth in a mature plantation (age 42 years) of big-leaf mahogany (Swietenia macrophylla King) in a subtropical moist forest in Puerto Rico. We calculated optimal rotation age by means of the biological and economic criteria. The analyses involved diameter measurements over 31 years and a variety of contrasting economic scenarios, which were evaluated by means of the Faustman formula and sensitivity analyses. The optimal biological rotation was 90 years while the optimal economic rotation was 42 years in most of the scenarios, regardless of wood prices and costs of reforestation. Conspicuous changes in the optimal economic rotation were only observed under low interest rates, in which it was prolonged to around 80 years, close to the optimal biological rotation. Abundant natural regeneration and a prolonged biological rotation suggest that other silvicultural systems, rather than traditional clear-cutting and replanting could be adopted. However, to evaluate alternative silvicultural strategies we would need to improve our ability to predict growth. This would require expansion of our database to include information on growth conditions of individual trees and young tree dynamics, as well as size and growth of other species, to model natural regeneration and competition.

In this paper, we first show both mathematically and empirically that the forest rent model is the wrong model to determine the optimal rotation age of a fully regulated forest as long as the standing timber has value. We then demonstrate that even if the forest is acquired for free, a fully regulated forest based on the forest rent model is actually worth more than the present value of its annual income. By converting to a fully regulated forest with a shorter rotation under the land expectation model, a higher present value of over 10% can be realized.

Since the early 1980s, ca 1,550 hectares (3,800 ac) of high-density jack pine (Pinus banksiana) plantations have been established annually in northern Lower Michigan to serve as habitat for the federally endangered Kirtland’s warbler (KW; Setophaga kirtlandii). Because these plantations do not appear capable of producing merchantable sawlogs by their planned 50-year harvest age, we investigated the potential to implement reduced rotation lengths in these stands to produce biomass and/or pulpwood. We used space-for-time substitution to assess biomass and volume accrual over time, using our own locally derived allometric biomass equations. The predicted optimal rotation age for biomass was 20 years, and the predicted optimal rotation age for pulpwood volume was 28 years. We compared the total land area required for management under these rotation scenarios to continue establishing 1,550 hectares (3,800 ac) of KW habitat annually. Management on the current 50-year cycle requires ca 77,500 hectares (191,500 ac). Management for pulpwood would reduce this to ca 43,400 hectares (107,250 ac), and management for biomass would require ca 31,000 hectares (76,600 ac). Our results suggest that rotation lengths in these plantations could be substantially reduced, allowing for reductions in the total land area dedicated to warbler habitat, allowing for diversification of management at the landscape scale.

Timber production and profitability were evaluated for spontaneously-regenerated mixtures on two formerly clearcut areas. The abandoned areas developed into birch-dominated ( Roth and Ehrh.) stands with successional ingrowth of Norway spruce ( (L.) H. Karst.). An experiment with randomized treatments within blocks was established, using three management strategies and one unthinned control, resulting in variation in optimal rotation age, merchantable volume and species composition. The management strategies were evaluated based on total production (volume) by using measured growth data 42 years after clearcutting and the modelled future stand development. The long-term effects of spontaneous regeneration and management strategies were evaluated based on land expectation value (LEV) and compared with a fifth management strategy using artificial regeneration and intense thinnings. 12 years after treatment, at a stand age of 42 years, the unthinned control had produced the highest total stem volume. At interest rates of 2% or higher, the unmanaged forest was an economically viable strategy, even compared to an intensive management strategy with a preferred merchantable timber species. Interest rates clearly impacted the profitability of the different management strategies. This study shows that when spontaneous regeneration is successful and dense, the first competition release can have a high impact on the development of future crop trees and on the species mixture.Betula pendulaBetula pubescensPicea abies

Understanding the growth patterns of long-lived conifer tree species is important to devise breeding and early selection strategies, predict future biomass productivity and assess adaptive tree fitness for long term conservation efforts. We investigated the genetic variation for growth traits of Araucaria angustifolia, the grandiose renowned ?Parana ´ pine? tree, in a trial involving 122 families across 15 provenances covering the entire natural range of the species in Brazil. Measurements at ages 7, 24, 32, 33 and 35 were used to adjust continuous growth curves based on nonlinear mixed-effect models for all 2158 trees, providing annual estimates for unmeasured ages in the 7-to-35-year interval. Estimated values closely matched observed ones and a reduction of the coefficient of residual variation was observed in the estimated data, possibly due to removal of random error in the observed measurements, making the estimated curves more reliable to predict growth patterns. Genetic variation for growth within provenances was greater than between, with a trend of increasing heritabilities over time for most provenances. Substantial genetic variation found both within and between families could drive efficient early selection at both levels. All provenances included individual trees and families with good potential to be selected for shorter rotations. Growth curves show that trees invest first in height and later in diameter growth. Considerable variation was observed across provenances for the optimal age and optimal tree volume at which annual growth increment peaks, a tipping point that could be used as a predictor of the optimal rotation age and expected tree volume. The data clearly indicate potential for early selection for growth at age 7?10 with an 85% prediction accuracy of growth at age 35. Additionally, growth data indicate potential of shortening harvest age from 30?35 to 15?20 years by selecting the best individuals and families. These results underscore the potential of expanding investments in breeding and plantation forestry of A. angustifolia, which in parallel could contribute to enhancing conservation efforts of this iconic subtropical conifer. Made available in DSpace on 2021-12-18T12:00:49Z (GMT). No. of bitstreams: 1 1-s2.0-S0378112721007611-main.pdf: 4728435 bytes, checksum: 3f3aa96503d0f0976f00afbab1a0b372 (MD5) Previous issue date: 2021

The establishment of commercial forest plantations requires the selection of sites where reasonable profitability can be attained. A financial analysis was made for the identification of the most suitable areas for the establishment of new Pinus patula plantations in the central region of Antioquia, Colombia. The analysis was performed assuming basic silvicultural treatments at the establishment but no management during the entire rotation period. Volume yield data at the stand level was obtained from a previously fitted model that uses biophysical variables and stand density as predictors. The estimated stand volume, a detailed cash flow, and a derived stumpage price were combined to perform a financial analysis. The Land Expectation Value (LEV) and Internal Rate of Return (IRR) at the optimal rotation age, along with their spatial variation, were calculated in this study. Results suggest that the estimated volume and the current stumpage price are not sufficient to guarantee reasonable profitability for new timberland investments. While the LEV was negative, the IRR was in the range 4.1±1.5%, which is less than the discount rate of 6.8% used in the financial analysis. However, a positive LEV and an IRR at 8% would be achieved if forest productivity increases by 20% because of silvicultural practices or costs reduction in a similar proportion (obtaining IRRs up to 8.4%). Moreover, if the government provide subsidies, the IRR would increase up to 10.3% (without requiring an increase in productivity or a decrease in costs) on sites with high growth potential (mean annual increment greater than 16 m3 ha-1 year-1), and close to the mills (less than 45 km radii). RESUMEN El establecimiento de plantaciones forestales comerciales requiere seleccionar sitios que garanticen una rentabilidad razonable para inversiones forestales. Se realizó un análisis financiero con el fin de identificar las áreas con mejor aptitud para el establecimiento de nuevas plantaciones de Pinus patula en la zona central de Antioquia, Colombia. El análisis se realizó asumiendo tratamientos silviculturales básicos en el establecimiento, pero ningún manejo durante el período de rotación. Información de rendimiento forestal en volumen a nivel de rodal se obtuvo de un modelo previamente ajustado, el cual depende de variables biofísicas y de la densidad de rodal. El volumen estimado a nivel de rodal, un flujo de caja detallado, y el precio de la madera en pie, se usaron en el análisis financiero. Se calcularon como criterios de bondad de inversión el Valor Económico del Suelo (VES) y la Tasa Interna de Retorno (TIR) a la edad óptima de rotación, así como su variación espacial. Los resultados sugieren que el volumen estimado de madera y los actuales precios no son lo suficientemente altos para garantizar una rentabilidad razonable para el establecimiento de nuevas plantaciones. Mientras el VES estimado fue negativo, la TIR encontrada se ubicó en el rango 4,1±1,5%, la cual es menor a la tasa de descuento de 6,8% usada en el análisis financiero. No obstante, valores positivos de VES pueden alcanzarse si se realizaran tratamientos silviculturales que conlleven a un aumento de la productividad forestal de 20%, o a una reducción de costos de la misma magnitud, alcanzando una TIR de hasta 8,4%. En un escenario de subsidios a la reforestación proporcionados por el gobierno, la TIR podría incrementar hasta 10,3%, sin requerir aumentos en la productividad o disminución de los costos, en sitios con alto potencial de crecimiento (incremento medio anual mayor a 16 m3 ha-1 año-1), y localizados a un radio de 45 km de los centros de transformación.

Pine forest management today has not already reached its optimal state. The abnormal pine stand structure will cause a decrease in the production of pine resin. This study aimed to determine the optimal rotation of pine plantation forest and formulated the harvest scheduling to ensured optimal resin production. The determination of optimal rotation was conducted by modifying the Faustman formula to be applied on the condition in forest management in Perhutani. Simulation optimization of harvest scheduling was conducted by linear programming. Optimal rotation of pine forest plantation consists of timber rotation and resin rotation. The highest net present value of timber was obtained at 25 year cycles and the highest net present value of the resin was obtained at 35 year cycles. The inclusion of resin benefit was resulting in lengthening the optimal rotation age. The abnormal stand structure was causing the fluctuations of pine resin production. Thus, the efforts to improve it was by applying the harvest scheduling framework. This study concluded that harvest scheduling which conducted over eight periods has made the abnormal stand structure into the normal forest condition. The existence of normal forest condition led to the certainty of pine resin production sustainability.

There are regions where forestry is required for wood production but the profitability is so low that many forest stands cannot be managed without subsidisation. Hence, the policymakers should design an efficient subsidising system involving the selection of subsidised forest stands. In this paper, we present an analytical framework for the proposition through the construction of a normal forest (a forest state such that the age distribution of stands is uniform) that consists of only stands that need to be subsidised for regeneration. The normal forest is constructed so that it supplies the required annual wood yield with minimum governmental expense for the subsidy. The rotation age of the normal forest is set to an optimal rotation age based on the soil expectation value of the stands under the minimum subsidy rates. The normal forest can be derived without numerical integration when the dominant tree height distribution follows a generalised gamma distribution. We present an application of the framework for four tree species in the Nagano Prefecture, Japan. The result of the application shows that the framework enables us to select the subsidised stands for efficient governmental funding, implying the practical conditions of the stands and requirements of wood demands, by using optimisation functions in a commercial spreadsheet program.

This study aimed to estimate the optimal forest rotation age for tropical plantations of a native tree species, Canarium album (Lour.) under the management of high, medium, and low income groups of farm households of Vietnam. The results suggest that: (i) the optimal rotation age for the low income group is longer than that for the high income group; (ii) low income farmers are more sensitive in terms of the land expectation value to changes in discount rate; (iii) low income farmers gain less if the carbon price increases; and (iv) the carbon payment scheme at the start of a rotation is more financially attractive to forest farmers, but the carbon payment scheme at the end of a rotation is more advantageous in terms of forest biodiversity. These findings lead to potential policy implications for forest management for the provision of multiple ecosystem services in the context of a developing country, demonstrating a tradeoff between forest income and biodiversity conservation. While an increase in carbon prices would benefit forest farmers, we also suggest that these farmers could be compensated for their income losses or rewarded to maintain or increase forest biodiversity. However, relatively greater attention could be paid to compensating low income farmers as they potentially lose more with an increase in discount rate and gain less with an increase in carbon price.

The growth of an even-aged stand usually follows a S-shaped pattern, implying that the growth function is convex when stand age is low and concave when stand age is high. Given such a growth functi ...

This study analyzes the productivity and profitability of Larix principis-rupprechtii and Pinus tabuliformis plantation forests in Northeast China. Three management regimes with different thinning intensities (heavy thinning, light thinning, and control) were considered. It is found that high initial planting densities without thinning cause high mortality and slow growth rates, leading to an unprofitable outcome. Thinning operations increase both diameter and height growth of the retained trees, boosting the merchantable volume of large-diameter trees and thus the profitability and productivity. The optimal rotation ages with heavy thinning of Larix principis-rupprechtii and Pinus tabuliformis plantations are 48 and 49 years, 7–8 years longer than what the current management regulation recommends. But the productivity per ha per year of Larix principis-rupprechtii in the heavy thinning regime doubled to 8.21 m3. For Pinus tabuliformis, the thinning treatments cause the productivity gains to increase from 5.1 to 7.9%. The constraints of government regulation without allowance for thinning to the near-mature stands and increasing the intensity could severely reduce the profitability and productivity.

Because of the tax-cutting mood of the general public, current interest in forest taxation by legislators is high. Many states, including Washington, Oregon, California, Montana, North Carolina, Georgia, Arkansas, and Texas, have either recently revised or are considering changing their forest taxation laws. The response from academicians, however, is mixed. Many articles by forest taxation specialists (Klemperer 1974, 1976, 1977a, 1977b; Olson and Haney 1980, Pasour and Holley 1976, Sutherland and Tedder 1979, Tedder and Sutherland 1979) and the published proceedings of a forest taxation symposium (Haney and Gunter 1978) have appeared in recent years. Yet, general tax economists have largely ignored the problem of forest property taxation, as evidenced by Aaron's recent study of property taxes in which forest taxation is not even mentioned (1975). At present, a rigorous analysis of the impact of forest taxation on the optimal management of timber has yet to appear in the literature. Because of the profound influence of forest taxation on many state and local economies and on forest productivity, it is important that the impact of the various taxation schemes be well understood during the process of revising the forest taxation laws. This paper examines the economic impact of various forest taxation schemes on the optimal rotation age under the assumptions of both tax capitalization and tax shifting. General tax economists should find taxation of forest property of interest for two reasons. First, commercial forest land in private ownership comprises more than 15% of the nation's total land area (Williams 1974). Second, the results of forest taxation studies apply readily to taxation of renewable resources in general. Currently, the major types of taxes that can be imposed on a forest property may be divided into annual property taxes and harvest taxes. The former include the "unmodified property tax" and the "site value tax." Every year, the "unmodified property tax" takes a percentage of the value of the land plus the value of the trees, and the "site value tax" takes a percentage of the value of the land only. Still a third type of property tax, called the timber tax, takes a percentage of the value of the trees only every year. Although this tax is rarely used, it is included in this study because of its theoretical importance. Harvest taxes include yield taxes and severance taxes. At the time of harvest, the "yield tax" takes a percentage of the stumpage value of timber and the "severance tax" imposes a charge per unit of timber volume harvested. Past studies of forest taxation have

The harvest rotation issue: M. Faustmann (1848), calculation of the value which forest land and immature stands possess for forestry B. Ohlin (1921), concerning the question of the rotation period in forestry W.R. Bentley, D.E. Teeguarden (1965), financial maturity - a theoretical review D. Klemperer (1976), impacts of tax alternatives on forest values and investments P.A. Samuelson (1976), economics of forestry in an evolving society J.S. Chang (1982), an economic analysis of forest taxation's impact on optimal rotation age W.J. Reed (1984), the effects of the risk of fire on the optimal rotation of a forest K-G. Lofgren (1985), effects on socially optimal rotation period in forestry of biotechnology improvements in the growth function R.J. Brazee, R. Mendelsohn (1988), timber harvesting with fluctuating prices E. Koskela (1989), forest taxation and timber supply under price uncertainty and perfect capital markets. Timber supply - planted forest and the optimal drawn-down: H.J. Vaux (1973), how much land do we need for timber growing M. Clawson (1979), forest in the long sweep of American history P. Berck (1979), the economics of timber - a renewable resource in the long run K.S. Lyon (1981), mining the forest and the time path of the price of timber K.S. Lyon, R.A. Sedjo (1983), an optimal control theory model to estimate the regional long-term supply of timber. Multiple use and nontimber outputs: R. Hartman (1976), harvesting decision when a standing forest has value S.K. Swallow, P.J. Parks, D. Wear (1990), policy relevant nonconvexities in the production of multiple forest benefits. Global issues: P.J. Parks, I.W. Hardie (1994), least cost forest carbon reserves - cost effective subsidies to convert marginal agriculture land to forests H.F. Hoen, B. Solberg (1994), potential and economic efficiency of carbon sequestration in forest biomass through silvicultural management G.C. Van Kooten, C.S. Binkley, G. Delcourt (1995), effect of carbon taxes and subsidies on optimal forest rotation age and supply of carbon services IPCC (2001), technical and economic potential of options to enhance, maintain and manage biological carbon reservoirs and geo-engineering L.A. Joyce, J.R. Mills, L.S. Heath, A.D. McGuire, R.W. Haynes, R.A. Birdsey (1995), forest sector impacts from changes in forest productivity under climate change C. Montgomery, G. Brown Jr, D.M. Adams (1994), the marginal cost of species preservation - the Northern Spotted Owl R.D. Simpson, R.A. Sedjo, J. Reid (1996), valuing biodiversity for pharmaceutical research.

We extended the Hartman model to examine the optimal rotation, taking into consideration the economic benefits of wood and the dynamics of three carbon pools (aboveground biomass, dead organic matter, and harvested forest products). Chinese fir (Cunninghamia lanceolata) stands in Southern China were taken for a numerical example to analyze the effects of carbon price on the optimal management of short-rotation plantations. The results show that, with the current price of carbon, introducing the effects of harvesting on different carbon pools into the decision model would increase the optimal rotation age on poor (SI = 10) and medium (SI = 17) sites by one year, while it does not have any impact on the optimal rotation for good sites (SI = 21). Irrespective of site condition, the optimal rotation age is not sensitive to carbon price and interest rate. An increase in interest rate by 1% would reduce the optimal rotation age by one year. In conclusion, forest carbon trade could effectively enhance land owners' income from short-rotation forest plantations. However, it does not lead to any significant increase in forest carbon sink.

Maritime pine (Pinus pinaster) is the most important conifer species in France in terms of wood production. It is mostly cultivated in even-aged monoculture stands in the Landes forest. These plantations are exposed to multiple biotic and abiotic risks: most importantly the cyclical outbreaks of a defoliator, the Pine Processionary Moth (PPM, Thaumetopoea pityocampa), and storms causing large windthrown. This study aims to compute the optimal rotation age and land expectation value (LEV) for maritime pine plantations in order to assess the impact of these disturbances. Using stochastic simulation methods, we simulate multiple scenarios combining different disturbance intensities. Our results show that both disturbances reduce LEV individually. When combined together, the two disturbances generate subadditive losses (i.e. combined damages are smaller than the sum of the damages from each disturbance individually). The impact on the optimal rotation length, however, is different for the two analysed risks: While storms tend to reduce the optimal harvest age, PPM tends to increase it. Overall, the impact of PPM on the rotation length prevails and, here, risks increase rather than decrease the optimal rotation length. Thinnings play an important role. They do not only increase profitability but also constitute an effective hedging strategy against both risks since they mitigate the negative impacts of PPM and storm disturbances for all the tested scenarios.

International audience; AbstractKey messageThe concept of expected losses is an appropriate measure for integrating risk in the determination of the optimal rotation period and choice of tree species.ContextNatural threats are challenging forest management decisions. Essential decisions about the optimal length of a harvest period are often taken without considering risks.AimsHere, a practical and easy to apply way to integrate risk in these decisions is shown. Furthermore, it is seen how the rotation period changes according to the risk-type and risk-level.MethodsThe marginal principle of Preßler’s indicator rate is developed further by including the concept of expected losses, leading to an optimal harvest age under risk. The application of the new formula is shown by a simulation, which also visualises the influence on the optimal rotation age.ResultsWhether risk influences the optimal harvest age compared to a risk free solution, depends on the relationship between expected losses in terms of land rent of the succeeding stand and expected losses in terms of value growth of the existing stand. If they are equal, the rotation age stays. If the expected loss on value growth is bigger than on land rent, the rotation period will be shorter, while it will be longer if the relation is inverse.ConclusionThe concept of expected losses can be applied to practically determine the optimal rotation period under risk.

The impact of the manipulation of plantation stocking density on individual tree size can affect final harvest costs and machine productivity. This paper investigated the impact of four early-age thinning treatments applied to a Eucalyptus globulus Labill. pulplog plantation in south-west Western Australia on economic profitability and harvester productivity. Eighteen sample plots were randomly laid out in the study area. The nominal 700, 500, and 400 stems per hectare (sph) plots were thinned to waste 3.2 years after establishment while the nominal 1000 sph (UTH) plots were left unthinned. The economic analysis showed that all thinning treatments resulted in a lower Land Expectation Value (LEV) and net financial loss over the full rotation at their theoretical optimal rotation age when compared with the unthinned control treatment. Tree growth and form were positively impacted by thinning. However, associated reductions in harvesting costs were less than the value losses resulting from reduced per hectare yield.

Enhancing carbon sequestration is crucial to mitigate rising global levels of greenhouse gases, and for developing countries, carbon sequestration may also provide economic benefits via international carbon trading schemes. This study aimed to determine the optimal management strategy for tropical planted forests when timber and carbon sequestration are valued. The survey data were collected from 291 household foresters, who were growing Eucalyptus urophylla and Acacia mangium in Yen Bai Province, Vietnam. The regression exercise suggests that financial status was negatively correlated with forest management practices, and ethnicity and financial status were correlated with carbon sequestration management. The survey results suggest that the mean rotation age employed by household foresters is five years. However, the optimization modelling suggests that the optimal rotation age for maximizing net present value is greater than nine years. The differences between current practices and optimal practices therefore favour a role for government policy interventions.

This article examines alternative forest harvesting regimes when ecosystem services in terms of water quality, biodiversity conservation and climate change mitigation are included in the analysis. The harvesting regimes are whole-tree harvesting with stump removal and conventional stem-only harvesting. The harvesting regimes are evaluated under two alternative climate policy contexts. The first alternative is a carbon neutral bioenergy policy, which assumes the carbon dioxide (CO2) neutrality of bioenergy and produces substitution benefits, as bioenergy replaces fossil fuels. The second alternative climate policy, a carbon non-neutral bioenergy policy, takes into account the fact that bioenergy causes carbon dioxide emissions, producing substitution costs, and that harvested woody biomass affects the ability of a forest to act as a carbon sink. We extend the traditional Faustmann (1849) rotation model to include nutrient load damage, biodiversity benefits, and climate impacts. The empirical analysis is based on Finnish data from a catchment experiment carried out on drained peatland forests. The empirical results show that under a carbon neutral bioenergy policy, whole-tree harvesting with stump removal produces the highest net social benefits. However, if a carbon non-neutral bioenergy policy is assumed, the net social benefits are greater under stem-only harvesting.

We extend the classic Mitra and Wan forestry model by assuming that prices follow a geometric Brownian motion. We move one step further in the model with stochastic prices and include risk aversion in the objective function. We prove that, as in the deterministic case, the optimal program is periodic both in the risk neutral and risk averse frameworks, when the benefit function is linear. We find the optimal rotation ages in both stochastic cases and show that they may differ significantly from the deterministic rotation age. In addition, we show how the drift of the price process affects the optimal rotation age and how the degree of risk aversion shortens it. We illustrate our findings for an example of a biomass function and for different values of the model’s parameters.

The joint effects of poplar biomass productivity and land costs on poplar production economics were compared for 12 Minnesota counties and two genetic groups, using a process-based model (3-PG) to estimate aboveground biomass productivity. The counties represent three levels of productivity which, due to spatial stratification, were analogous to three biomass supplysheds. An optimal rotation age (ORA) was calculated that minimizes the annualized, discounted per-dry megagrams biomass cost for each county, genetic group and land cover, and for two discount rates (5 and 10 %). The ORA for the lowest-cost county (Todd) with specialist genotypes and a 5 % discount rate is 14 years and the breakeven price at that age is US$71 dry Mg−1, while for the highest-cost county (McLeod), the generalist genotype and a 10 % discount rate, the ORA is 10 years and the breakeven price at that age is US$175 dry Mg−1. Planting after a previous poplar stand increased breakeven prices and increased the ORAs by 1 to 2 years relative to planting after a previous annual crop. An ANOVA analysis showed a significant genetic group effect and significant productivity class × land rent interactions. All other factors being equal, an increase in the discount rate from 5 to 10 % is expected to reduce ORAs by 2 to 3 years. High-productivity supplysheds can also be expected to have ORAs that are 2 to 3 years shorter than low-productivity ones. Land costs were not as closely correlated to productivity as we expected.

We combined economic and life-cycle analyses in an integrated framework to ascertain greenhouse gas (GHG) intensities, production costs, and abatement costs of GHG emissions for ethanol and electricity derived from three woody feedstocks (logging residues only, pulpwood only, and pulpwood and logging residues combined) across two forest management choices (intensive and nonintensive) and 31 harvest ages (year 10–year 40 in steps of 1 year) on reforested and afforested lands at the production level for slash pine (Pinus elliottii) in the Southern United States. We assumed that wood chips and wood pellets will be used to produce ethanol and generate electricity, respectively. Production costs and GHG intensities of ethanol and electricity were lowest for logging residues at the optimal rotation age for both forest management choices. Opportunity cost related with the change in rotation age was a significant determinant of the variability in the overall production cost. GHG intensity of feedstocks obtained from afforested land was lower than reforested land. Relative savings in GHG emissions were higher for ethanol than electricity. Abatement cost of GHG emissions for ethanol was lower than electricity, especially when feedstocks were obtained from a plantation whose rotation age was close to the optimal rotation age. A carbon tax of at least $25 and $38 Mg � 1 CO2e will be needed to promote production of ethanol from wood chips and electricity from wood pellets in the US, respectively.

This 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation provides a guide for forest landowners, managers, and stakeholders in conducting a valuation of timber investments. It reviews and provides examples of two different approaches for determining the optimal rotation age of even-aged forest stands. These methods can help forest landowners and managers in making forestry investment decisions. https://edis.ifas.ufl.edu/fr424

This paper presents a method for determining the subsidy required to motivate farmers to participate in timber afforestation programs designed to maximize social well-being. The method incorporates a carbon sequestration benefit function into the land expected value model in order to quantify the social benefit arising from carbon sequestration by the planted trees. This is used to calculate the optimal rotation age for newly planted forests that maximizes social utility. The minimum subsidy required to motivate farmers to participate in the afforestation program was calculated using a modified decision model that accounts for the subsidy's impact. The maximum subsidy offered by the government was taken to be the NPV of the carbon sequestration achieved by afforestation. Data on Robinia pseudoacacia L. trees planted on the Loess Plateau were used in an empirical test of the model, which in this case predicts an optimal subsidy of 254.38 yuan/ha over 40 years. This would guarantee the maintenance of forest on land designated for afforestation until they reached the socially optimal rotation age. The method presented herein offers a new framework for designing afforestation subsidy programs that account for the environmental service (specially, the carbon sequestration) provided by forests.

Biodiversity loss is a major problem in terms of loss of genetic and ecosystem services and more specifically via impacts on the livelihoods, food security and health of the poor. This study modeled forest management strategies that balance economic gains and biodiversity conservation benefits in planted tropical forests. A forest-level model was developed that maximized the net present value (NPV) from selling timber and carbon sequestration while maintaining a given level of biodiversity (as per the population density of birds). The model was applied to Eucalyptus urophylla planted forests in Yen Bai Province, Vietnam. It was found that the inclusion of biodiversity conservation in the model induces a longer optimal rotation age compared to the period that maximizes the joint value from timber and carbon sequestration (from 8 to 10.9 years). The average NPV when considering timber values plus carbon sequestration was 13 million Vietnamese Dong (VND) ha− 1 (765 USD ha− 1), and timber, carbon sequestration and biodiversity values were 11 million VND (676 USD) ha− 1. Given this differential, governments in such tropical countries may need to consider additional incentives to forest owners if they are to encourage maximizing biodiversity and its associated benefits. The results also have some implications for implementing the climate control measure of “Reducing Emissions from Deforestation and Forest Degradation-plus (REDD +)” in developing countries, i.e., payment for carbon sequestration and biodiversity benefits in planted forests.

A financial analysis was done for Chir pine (Pinus roxburghii) plantations that produce carbon offset payments, timber and resin in a community forest context in Nepal. Results indicate that the inclusion of carbon offset payments increases rotation age and land expectation value. The optimal rotation age is approximately 35 years without including carbon offset payments, while the rotation age can increase beyond 75 years with the inclusion of carbon offset payments. The substantial change in optimal rotation age also suggests that carbon offset payments will likely change the product mix produced from Chir pine plantations. Likewise, land expectation value increases significantly with carbon offset payments indicating that local communities could benefit from such payments. The results also indicate that different assumptions about the quantity of long term carbon storage (i.e. pickling rate) have a significant impact on rotation age and land expectation value. DOI: http://dx.doi.org/10.3126/banko.v22i2.9193 Banko Janakari : A Journal of Forestry Information for Nepal Vol. 22, No. 2, 2012 November Page: 3-10 Uploaded date : 12/1/2013

There are at least four physical levels of forest management and planning where decisions must be made: at the tree-level, the stand-level, the forest-level, and the landscape level. With each level, the management issues grow in size and scope, and decisions made at each level may be interconnected as well. However, tree-level decisions and stand-level decisions are not necessarily complementary; neither are stand-level decisions and forest-level decisions. This chapter concerns tree- and stand-level decisions and how a landowner may want to maximize the volume or value produced from a tree or a stand. Forest-level decisions are considered in forthcoming chapters. These typically are developed for one landowner or organization. Landscape plans can involve multiple landowners or organizations. Optimal plans of action are those where the schedule of activities will best meet the objectives of the landowner within the scope of their perceived physical level of forest management. Of course, a number of constraints may guide the development of an optimal plan. In an effort to use resources wisely, we need to understand how to develop guidelines for field implementation of activities, and an optimal solution to a management problem is a reasonable starting point. In addition, landowners not only may want to understand the best course of action for the management of their land, but also to compare the optimal plan to several alternatives in an effort to understand the associated trade-offs.

Using forest for carbon sequestration is widely accepted as an important strategy to mitigate climate change.Using data collected from rural households′ survey in Zhejiang and Jiangxi,Faustmann model was applied to investigate the optimal rotation age and forestland expectation value between traditional timber management and joint timber and carbon management for Chinese fir.Carbon supply curve was developed and sensitivity analysis was conducted with various interest rate and carbon price.It was found that the optimal rotation of Chinese fir in the joint management does not change from traditional timber management due to the fact that timber price is much higher than carbon price,suggesting that optimal decision for Chinese fir management will not change significantly and carbon sequestration supply from current Chinese fir forestland would not increase significantly within a large range change of carbon price.However,including carbon value would significantly increase the land value for forest management against alternative land uses,and will expand the forest area,which also increase the carbon storage in the expanded forestland.

This study modelled the potential biodiversity benefits and the opportunity costs of a patch-clear-cutting strategy over a clear-cutting strategy for Pinus radiata in New Zealand. Patch-clear cutting is a special case of clear cutting involving the removal of all the trees from strips or patches within a stand, leaving the remainder uncut or clear cutting a series of strips or patches. A forest-level optimisation model was extended to include uncertainty in timber growth, plant diversity, and cutting costs. Using a species-area relationship and economies of cutting scale, the net present value and optimal rotation age under alternative management strategies were calculated. Results suggested that the optimal rotation ages were similar (24 and 25 years) for the two cutting strategies. Patch-clear cutting provided higher biodiversity benefits (i.e., 59 vs. 11 understorey plant species) with an opportunity cost of 27 NZD (18 USD) per extra plant species or 1250 NZD (820 USD) ha−1. However, the true benefits of patch-clear cutting would be even greater if other benefits of stand retention are included. Our research can potentially inform local decision making and inform international systems of payment for environmental services, such as the REDD+ (Reducing Emissions from Deforestation and Forest Degradation) program, to conserve biodiversity in developing countries with plantation forests.

This article analyzes the optimal rotation age and the size of the buffer zone when society values harvest revenue, water quality and biodiversity. In a theoretical model we extend the traditional Faustmann rotation model to include the possibility of leaving an unharvested riparian buffer zone between the cut area and the watercourse in order to reduce nutrient load damages to the watercourse and increase biodiversity benefits in the buffer zone. We then analyze how the optimal rotation age and optimal size of the buffer zone are chosen simultaneously. In an empirical analysis, we use Finnish data including simulation results of nitrogen loads to find the social optimal solution with a numerical model. Biodiversity is valuated as a willingness to pay for retention trees left in the buffer zone. According to the empirical results in the social optimum it is not optimal to allocate any land to an unharvested buffer zone when we consider the reduction of the nitrogen load as the only benefit provided by the buffer zone. However, when we add the biodiversity benefits into the empirical analysis, the optimal size of the buffer zone is 4% of the area in the social optimum. Under the current damage valuation, the empirical results do not give any support to the hypothesis that prolonged rotation ages could be used to reduce the damage from the nutrient load.

In the 1990s, an expansion of small-scale (farm) forestry in medium to low rainfall areas was considered to be an important part of increasing the national forest estate but it remains a very minor source of timber, largely confined to the higher rainfall areas. In most areas, returns from timber are much less than for alternative land uses, even with low discount rates. If however, there are additional returns from plantation grazing and carbon sequestration and there are other potential management gains, multiple use plantations may be more attractive. The goal of this study is to estimate the net present values of multiple use spotted gum plantations in a medium rainfall area of southeast Queensland. For the case study, production, carbon sequestration and emissions data were supplemented by formal and informal interviews with landholders, sawmill staff and government extension personnel. Forest inventory, biomass and soil sampling, and stakeholder interviews were used as sources of primary data. The costs and benefits data were converted into monetary terms and discounted to produce net present values. Evaluations in this study identify the optimal rotation age of plantations to be 33–34 years. This is the case if including carbon and stock values, and using either farm- or factory-gate timber prices. The net present value increases significantly however if farmers harvest the trees themselves. In addition, at harvesting age, it was found that carbon and stock had the potential to account for 19.2 and 11.4 % respectively of the total returns from spotted gum plantations. Policy initiatives to support the farm forestry sub-sector should include pricing greenhouse gas emissions and developing and strengthening farmers co-operatives and marketing institutions to enhance farmers’ bargaining power.

A classical problem in forest economics is the determination of the optimal rotation age. It is commonly acknowledged that Martin Faustmann and Max Robert Pressler contributed the most to the solution of this problem. Faustmann formulated the renowned land expectation value formula, which laid the foundation for economic analyses of the optimal rotation problem. He also provided several hints on how to correctly solve the problem. Pressler's work focused on the growth of the capital in a forest stand. He invented the concept of Indicator Per Cent, and argued that the Indicator Per Cent should be used to guide forestry decision-making. Pressler correctly stated how to use the Indicator Per Cent to determine when a stand should be harvested. However, his suggestions about the choice among silviculture options indicate that he did not fully understand the economic implication of the Indicator Per Cent.

This paper proposes a discrete-time type timber harvesting model for simultaneously determining (i) the optimal quantity of seedlings to be planted, (ii) the optimal quantities of timber harvested by thinnings, and (iii) the optimal rotation age. With the help of Microsoft Excel Solver, a generalized reduced gradient algorithm, numerical examples are developed to evaluate the impact of the variations in the quality level of a forest site on the optimal harvest strategy. It is shown that the level of optimal rotation age and optimal quantity of seedlings to be planted can individually exhibit non-monotonicity to the increase in site quality.

Healthy forests and enhanced habitat for wildlife is a growing concern among public and policy makers. These concerns have led to substantial interest in promoting various regulatory and voluntary compliance policies to further biodiversity on private forests. These policies, however, might result in additional cost to forestland owners. In this paper, we estimate the opportunity cost of adopting various biodiversity-friendly forest practices. We do this in the context of slash pine, a dominant commercial tree plantation species in Florida. Results suggest that prescribed burning, invasive species control, maintaining streamside buffer zones, and extending timber harvest beyond the optimal rotation age would significantly decrease the profitability of slash pine forestry. If the major objective of landowners is to maximize profits, results indicate that they are less likely to adopt these practices at socially desirable levels without a policy support. More specifically, results suggest that an annual payment of $38–83 per hectare is required for landowners to adopt these practices. The paper further argues that application of mere command-and-control approaches to implement these practices may result in conversion of private forests to other competitive land uses.

Populations of northern bobwhite (Colinus virginianus) have declined significantly over the past 50 years, and the primary factor contributing to this decline has been the loss of habitat. Forest landowners who are concerned with providing bobwhite habitat as well as generating revenue from timber should balance the silvicultural requirements of timber production with the biological needs of the bobwhite. The goal of this study was to determine the economic tradeoffs between bobwhite and timber management and how to minimize loss or maximize profit when managing for bobwhite and timber simultaneously. I performed discounted cash flow analyses, calculated land expectation value, and determined the financially optimal rotation age and optimal timing and intensity of thinnings for loblolly pine (Pinus taeda) plantations under specific management objectives. My results show that the annual per-hectare economic gains of managing for both bobwhite and timber ranged from US$19.27 to $41.37 on site index 50 land, and ranged from $32.63 to $50.02 on site index 90 land. My analysis indicates that bobwhite management provides an investment opportunity to landowners whose low-productivity sites would be unprofitable if timber is the only product. My study provides an example of integrating multiple uses of goods and services in a way that maximizes economic returns and aids land managers in producing better habitat for bobwhite.

Forests help mitigate climate change by sequestering atmospheric carbon. However, boreal and high-latitude temperate forests may also contribute to global warming due to the albedo effect. The relative effects of carbon sequestration and albedo can be quantified in terms of radiative forcing. We present a stylized, stand-level analysis to determine the optimal rotation age when considering a tax/subsidy scheme based on radiative forcing and the notion of equivalent carbon emissions. Additional management decision variables considered include species choice and regeneration effort, since these can impact the albedo effect. We demonstrate analytically that the optimal rotation length is likely shortened when albedo-related equivalent emissions are incorporated, relative to a policy based only on carbon. Empirical results indicate that rotation ages do decrease relative to a “carbon only” policy, and approach the traditional (timber only) Faustmann rotation age as equivalent emission rates increase. Our results suggest that forestation does not necessarily provide climatic benefits in all circumstances, and that, at the margin, other opportunities for carbon reduction (e.g. abatement), or pursuing forestation in other locations, become more attractive.

The economic decision model serving as an objective function in forest economics was conceived originally by Faustmann at the stand level. Nevertheless, the tree level seems to be an appropriate scale for analysis, especially for harvesting decisions and certain estimations both at tree and stand levels. However, the Faustmann formula cannot be directly applied to the tree level. The present research has provided certain tree-level formulations of the Faustmann formula, including, in particular, tree expectation value (TEV) and land expectation value (LEV). TEV and tree-level LEV formulas were developed by analyzing the Faustmann formula under deterministic conditions. Unlike previous tree-level decision models presented in the forest economics literature, TEV and tree-level LEV formulas incorporate the expectation value of the land occupied by trees and its variability over time as well as the interaction between trees and their trajectories (cutting age). The proposed formulas were then compared with the Faustmann formula using the first-order condition of optimal harvest age. The TEV and tree-level LEV formulas appeared to be absolutely compatible with the Faustmann formula. The utility of the proposed formulas was then illustrated with application examples, including target diameter, stand expectation value, TEV, LEV, and the value of damage to beech trees or stands in northeastern France.

This paper extends the Hartman model to study the optimal rotation age of two interdependent stands when the stream of amenities produces from the two stands may be complements or substitutes, both in space and over time. In the presence of stand interdependence both the ownership structure and the sequence of decision making matters. Rotation age choices are examined and compared under a variety of equilibria, including Nash, Stackelberg, and sole owner cases which differ as to the level of commitment by landowners to their choices. We show that the sole owner’s rotation age is longer than the rotation age solved under both Nash and Stackelberg assumptions if the stands are spatial complements, but shorter if they are substitutes. The precise relationship between the Nash and Stackelberg rotation ages, and the qualitative properties of rotation ages in terms of timber prices, regeneration costs, and interest rates, also depend on how spatial substitutability and complementarity between stands evolves through time.

The effect of risk from catastrophic tree mortality, such as fire, insect outbreaks and hurricanes, on selling credits for carbon sequestration from a slash pine plantation is modeled. We achieve this task by developing a modified Hartman model and applying it to a slash pine plantation. It is found that risk decreases the land expectation value and the optimal rotation age on a forest stand producing timber and carbon sequestration benefits. This decrease is greater with higher prices of carbon. Furthermore, risk increases the amount of pulpwood produced from the stand and decreases the amount of sawtimber produced. Since pulpwood has a shorter life span than sawtimber this reduces the amount of carbon sequestered. This effect is greater for higher prices of carbon suggesting that risk dampens the effect that a carbon market would have in inducing landowners to sequester more carbon.