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Economic analysis of forest management alternatives: Compositional objectives, rotation ages, and harvest methods in boreal forests

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  • Chen, Si
  • Shahi, Chander
  • Chen, Han Y.H.
  • McLaren, Brian

Abstract

Timber production and economic gain are important forestry objectives. Boreal forests have long been an important contributor to commodity products. However, in recent decades, commercial production in the boreal forest industry is undergoing a fundamental shift from traditional wood products to multiple value-added products including residues for bioenergy production. In order to help decision makers select economically optimal forest management alternatives, we conducted an empirical study, the first of its kind, to explore the impact of varying silvicultural intensities, forest compositions, rotation ages, and harvest methods on profits in a portion of boreal forest in Northwestern Ontario. We found that silvicultural intensity, forest composition, rotation age, and harvest method significantly affected profit. The profit was on average the highest from coniferous stands, followed by mixedwood and broadleaved compositions. The profits in mixedwood stands increased continuously with rotation age using both Full-Tree to Roadside Tree-Length-to-Mill harvesting method (FT-TL) and Full-Tree to Roadside Shortwood-to-Mill method (FT-SW), and increased with rotation age but decreased at late-succession stage using Cut-to-Length method (CTL). The profits were on average higher using FT-TL than using FT-SW and CTL. The maximum profit ($3305/ha) was solved for low silvicultural intensity (conifer – conifer), with a rotation age of 100years, using the FT-TL harvest method. This analysis provides an example of finding economically optimal forest management solutions.

Suggested Citation

  • Chen, Si & Shahi, Chander & Chen, Han Y.H. & McLaren, Brian, 2017. "Economic analysis of forest management alternatives: Compositional objectives, rotation ages, and harvest methods in boreal forests," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 124-134.
  • Handle: RePEc:eee:forpol:v:85:y:2017:i:p1:p:124-134
    DOI: 10.1016/j.forpol.2017.09.006
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    References listed on IDEAS

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    1. Halbritter, Andreas & Deegen, Peter, 2015. "A combined economic analysis of optimal planting density, thinning and rotation for an even-aged forest stand," Forest Policy and Economics, Elsevier, vol. 51(C), pages 38-46.
    2. Yemshanov, Denys & McCarney, Geoffrey R. & Hauer, Grant & Luckert, M.K. (Marty) & Unterschultz, Jim & McKenney, Daniel W., 2015. "A real options-net present value approach to assessing land use change: A case study of afforestation in Canada," Forest Policy and Economics, Elsevier, vol. 50(C), pages 327-336.
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    4. Thompson, Matthew P. & Adams, Darius & Sessions, John, 2009. "Radiative forcing and the optimal rotation age," Ecological Economics, Elsevier, vol. 68(10), pages 2713-2720, August.
    5. Erickson, Jon D. & Chapman, Duane & Fahey, Timothy J. & Christ, Martin J., 1999. "Non-renewability in forest rotations: implications for economic and ecosystem sustainability," Ecological Economics, Elsevier, vol. 31(1), pages 91-106, October.
    6. Tahvonen, Olli, 2016. "Economics of rotation and thinning revisited: the optimality of clearcuts versus continuous cover forestry," Forest Policy and Economics, Elsevier, vol. 62(C), pages 88-94.
    7. Miettinen, Jenni & Ollikainen, Markku & Nieminen, Tiina M. & Ukonmaanaho, Liisa & Laurén, Ari & Hynynen, Jari & Lehtonen, Mika & Valsta, Lauri, 2014. "Whole-tree harvesting with stump removal versus stem-only harvesting in peatlands when water quality, biodiversity conservation and climate change mitigation matter," Forest Policy and Economics, Elsevier, vol. 47(C), pages 25-35.
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    Cited by:

    1. Chen, Si & Shahi, Chander & Chen, Han Y.H. & Kumar, Praveen & Ma, Zilong & McLaren, Brian, 2018. "Trade-offs and Synergies Between Economic Gains and Plant Diversity Across a Range of Management Alternatives in Boreal Forests," Ecological Economics, Elsevier, vol. 151(C), pages 162-172.

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