Harvest Scheduling as a Timber Appraisal Tool

Appraisers often value a forest that contains many different timber stands that can vary due to factors such as age, stocking, species, and site index. Many assumptions are possible on how the various stands will be harvested and what subsequent cash flows might be generated. We describe harvest scheduling methodology that is widely used to obtain the net present value of such a forest under optimal conditions. We illustrate how a popular software package can be used by appraisers to obtain optimal discounted cash flows using harvest scheduling and resulting timber stand values. ChristopherProduction Economics,

Optimal Partial Harvesting Schedule for Aquaculture Operations

Abstract When growth is density dependent, partial harvest of the standing stock of cultured species (fish or shrimp) over the course of the growing season (i.e., partial harvesting) would decrease competition and thereby increase individual growth rates and total yield. Existing studies in optimal harvest management of aquaculture operations, however, have not provided a rigorous framework for determining "discrete" partial harvesting (i.e., partially harvest the cultured species at several discrete points until the final harvest). In this paper, we develop a partial harvesting model that is capable of addressing discrete partial harvesting and other partial harvesting using impulsive control theory. We derive necessary conditions of the efficient partial harvesting scheme for a single production cycle. We also present a numerical example to illustrate how partial harvesting can improve the profitability of an aquaculture enterprise compared to single-batch harvesting and gradual thinning. The study results indicate that well-designed partial harvesting schemes can enhance the profitability of aquaculture operations.Partial harvesting, impulsive control theory, aquaculture., Livestock Production/Industries, C61, Q22,

A Methodological Investigation of Cost of Carbon Sequestration

Increased attention by policy makers to the threat of global climate change has brought with it considerable attention to the possibility of encouraging the growth of forests as a means of sequestering carbon dioxide. This approach has, in fact, become an explicit element of both U.S. and international climate policies. This paper develops a methodology whereby estimates of the costs of carbon sequestration can be developed on the basis of evidence from observations of landowners' behavior when confronted with the opportunity costs of alternative land uses. The analytical model takes account of silvicultural understanding of the intertemporal linkages between deforestation and carbon emissions, on the one hand and between forestation and carbon sequestration, on the other. The results support the efficacy and potential value of this analytical approach. The paper is intended to be illustrative of how econometric analyses of land use, which already exist for a number of countries, can be used to develop better region-specific estimates of the marginal costs of carbon sequestration.

Systems Analysis in Forestry and Forest Industries

The purpose of this book is to present a variety of articles revealing the state of the art of applications of systems analysis techniques to problems of the forest sector. Such applications cover a vast range of issues in forestry and the forest industry. They include the dynamics of the forest ecosystem, optimal forest management, the roundwood market, forest industrial strategy, regional and national forest sector policy as well as international trade in forest products. Forest industrial applications at mill level, such as optimal paper trimming, cutting, and production scheduling, are however, excluded

Economics of size-structured forestry with carbon storage

We study the economics of carbon storage using a model that includes forest size structure and determines the choice between rotation forestry and continuous cover forestry. Optimal harvests may rely solely on thinning, implying infinite rotation and continuous cover forestry, or both thinning and clearcuts, implying finite rotation periods. Given several carbon prices and interest rates, we optimize the timing and intensity of thinnings along with the choice of management regime. In addition to the carbon storage in living trees, we include the carbon dynamics of dead trees and timber products. Forest growth is specified by an empirically validated transition matrix model for Norway spruce (Picea abies (L.) Karst.). The optimization problem is solved in its general dynamic form by applying bilevel optimization with gradient-based interior point methods and a genetic algorithm. Carbon pricing postpones thinnings, increases stand density by directing harvests to larger trees, and typically yields a regime shift from rotation forestry to continuous cover forestry. In continuous cover solutions, the steady-state harvesting interval and the diameter distribution of standing and harvested trees are sensitive to carbon price, implying that carbon pricing increases the sawlog ratio of timber yields. Additionally, we obtain relatively inexpensive stand-level marginal costs of carbon storage.Peer reviewe

Exploring wood procurement system agility to improve the forest products industry’s competitiveness

Les difficultés vécus par l'industrie canadienne des produits forestiers dans la dernière décennie l’ont amené vers une transformation importante. L'innovation dans les produits et les processus est encore nécessaire afin de maximiser la valeur économique des ressources forestières. Cette thèse se concentre sur le les systèmes d'approvisionnement en bois de l’industrie forestière qui est responsable de la récolte et de la livraison des matières premières de la forêt vers les usines. Les entreprises les plus compétitives sont celles qui peuvent fournir les bons produits aux bons clients au bon moment. L'agilité du système d'approvisionnement en bois devient ainsi une des caractéristiques nécessaires à la compétitivité. Les objectifs de la thèse sont d'identifier les possibilités d'améliorer l'agilité du système d'approvisionnement en bois, de quantifier les gains potentiels et de proposer un mécanisme dans le but d’anticiper son impact à long terme. L’agilité est la capacité des systèmes d'approvisionnement en bois à répondre rapidement et efficacement à des fluctuations inattendues de la demande. Premièrement, nous identifions les capacités requises par le système d'approvisionnement en bois qui permettent l'agilité; ensuite, nous examinons la littérature portant sur les systèmes d'approvisionnement en bois pour trouver des signes de ces capacités. Suite à cette étape, une opportunité d'améliorer l'agilité des systèmes d'approvisionnement a été identifiée. Celle-ci implique une plus grande flexibilité dans le choix des traitements sylvicoles au niveau opérationnel afin de mieux aligner l'offre avec la demande. Une expérimentation a été menée en utilisant des données industrielles pour quantifier les avantages potentiels associés à l'approche. Dans les scénarios avec flexibilité permise, des profits significativement plus élevés et des taux plus élevés de satisfaction de la demande ont été observés. Ensuite, un système de simulation-optimisation de la planification hiérarchique a été développé pour étudier l'influence de la flexibilité au niveau opérationnel sur l'approvisionnement en bois à long terme. Le système a été mis en œuvre en utilisant les données hypothétiques d'une forêt du domaine public québécois pour un horizon de 100 ans. Le système développé a permis de mesurer les impacts à courts et à long terme des décisions d'approvisionnement. Il devrait permettre de mieux intégrer les pratiques d’aménagements forestiers avec les besoins de la chaîne d’approvisionnement.The significant downfall experienced by the Canadian forest products industry in the past decade has catalyzed the industry into a process of transformation. A concerted effort to maximize economic value from forest resources through innovation in both products and processes is currently underway. This thesis focuses on process innovation of wood procurement systems (WPS). WPS includes upstream processes and actors in the forest products supply chain, responsible for procuring and delivering raw materials from forests to manufacturing mills. The competitiveness of the industry depends on the agility of WPS to deliver the right product to the right customer at the right time. The specific aims of the thesis are to identify opportunities to improve wood procurement system agility, quantify the potential improvement in performance and propose a mechanism to anticipate its long-term impact. Agility is the ability to respond promptly and effectively to unexpected short-term fluctuation in demand. We first identify the capabilities a WPS needs to possess in order to enable agility; we then review the literature in the WPS domain to search for evidence of these capabilities. An opportunity to improve agility of WPS was then identified. It entailed providing managers with flexibility in the choice of silvicultural treatments at the operational level to permit better alignment of supply with the prevailing demand. An experiment was conducted using industry data to quantify the potential benefits associated with the approach. In scenarios where flexibility was permitted, significantly higher profits and demand fulfillment rates were observed. Next, a simulation-optimization system for hierarchical forest management planning was developed to examine the influence of operational level silvicultural flexibility on long-term wood supply. The system was implemented to a forest management unit in Québec in a rolling planning horizon basis for a 100 year horizon. The system demonstrated a capability to measure short and long-term impacts of supply decisions. It will prove to be a useful tool to better integrate forest management practices and supply chain needs

Islands of Sustainability in Time and Space

We review the economics perspective on sustainable resource use and sustainable development. Under standard conditions, dynamic efficiency leads to sustainability of renewable resources but not the other way around. For the economic-ecological system as a whole, dynamic efficiency and intergenerational equity similarly lead to sustainability, but ad hoc rules of sustainability may well lead to sacrifices in human welfare. We then address the challenges of extending economic sustainability to space as well as time and discuss the factors leading to optimal islands of preservation regarding renewable resources. Exogenous mandates based on moral imperatives such as self-sufficiency and strong sustainability may result in missed win-win opportunities that could improve both the economy and the environment, as well as increase social welfare across generations.Islands of sustainability, sustainable development, sustainability science, fisheries, forests

Cost-effectiveness of measures to improve biodiversity in Swedish forests

The main objective of this thesis is to analyse the cost-effectiveness of measures, which improve biodiversity among life forms dependent on coarse woody debris (CWD). The amount of CWD in forest land has decreased due to modern forest management. The wood of the trees is an important source of income for the forest owner and there is an undeniable conflict between increasing the amount of CWD and the economics of silviculture. To gain acceptance among forest owners of an increased retention of trees as potential CWD substrate, it is important that CWD-increasing measures are performed in a cost-effective manner, which means that the cost to attain a specific level of CWD is as low as possible. Calculations were performed of CWD formed and opportunity costs of forest stands from three regions in Sweden. Norway spruce was the prime study object but analysis of mixed stands of Norway spruce, Scots pine and birch or aspen were carried out as well. The cost-efficiency of seven conservation measures, which aim to increase CWD in managed forests, was analysed. In all regions the same pattern was obtained regarding ranking order of five measures; retention of snags was the most cost-effective measure, followed by creating high stumps, manual scarification and retention of living trees, and finally prolongation of rotation as the least cost-effective measure. Setting aside a stand as a reserve, and retention of wind-thrown trees showed an increasing cost with increasing land productivity. Estimating the cost-efficiency factor for different CWD-increasing measures in mixed stands revealed that birch and aspen were more cost-effective than Norway spruce and Scots pine. In a multiple stand context the least-cost allocation of conservation measures depends on the desired increase in CWD. Analysing the choice of cost-effective CWD-increasing measures on a Norway spruce dominated estate in central Sweden showed that huge improvements in the cost-effectiveness of biodiversity-oriented forestry are possible