Cost minimization through the use of taungya system in pulpwood plantation establishment

The costs and benefits of the use of three labour alternatives: direct permanent, direct casual and taungya labour in Gmelina arborea pulpwood plantation establishment in Nigeria were investigated. Results show that cost per hectare is lowest with taungya labour and highest with permanent labour with savings in cost of as much as 30% and 47% by taungya labour over casual and permanent labour respectively. The net present value per hectare of investment is highest when taungya labour is used and lowest and negative with permanent labour. Also, the internal rate of return of investment is highest with taungya labour and lowest with permanent labour. The net present values and internal rates of return for Gmelina plantations calculated for the three pulp and paper mills in Nigeria show the same trend in favour of taungya labour.     

The Determinants of Foreign Direct Investments in Latin American Forestry and Forest Industry

ABSTRACT

The paper examines the relationships between the inflow of foreign direct investment (FDI) in the forestry and forest products industry and host-country-specific factors that affect the spatial distribution of FDI. Data on Brazil and Chile are used to analyze the impact of market size, roundwood supply, and exports on FDI. The results indicate that the main motivation for FDI is market-seeking and resource-seeking, highlighting the role of domestic demand and sufficient supply of roundwood in multinational forestry companies' investment decisions. The results further imply that governments can use policies related to these factors to attract foreign investment into the forest sector in Brazil and Chile.     

Return and Risk in Timberland and Other Investment Alternatives of NIPF Owners

No comparisons for Non-Industrial Private Forest (NIPF) owners of the returns on timberland and other investment alternatives, or of the risks in different investments, have been made in Swedish forest economics research. Modern portfolio theory in forest economics has been used to a very small extent in all of Europe, with the exception of Finland. The underlying idea in this study was to apply "the mean-variance framework" in Swedish forest holdings and make comparisons with some other investment alternatives. The results showed that forest holdings had a medium-high return and a high risk. Shares showed high returns and a relatively high risk. Bank assets showed low returns and a low risk. The lowest returns were seen for agricultural holdings. There were negative correlations for forest holdings with several other assets, which means that forest as one investment in a portfolio can be defended when the risks are spread out over time. The result indicates that it would be of interest for NIPF owners to reduce their investments in timberland and increase their share holdings. However, the portfolio mixture depends on the risk preferences of the owners.     

Modelling Birch Pulpwood Imports to Finland

Recent increases in pulpwood imports to Finland have raised an intense debate about their possible effects on the domestic wood markets. Since important institutional and structural changes in the market environment have taken place in the markets during the 1990s, it is important to take these into account in modelling imports. Our results consider three different time periods between 1986 and 1998, and indicate that market mechanisms in Finnish birch pulpwood imports have improved substantially in the latter part of the 1990s. Imports are found to be elastic with respect to changes in pulpwood import price, domestic pulpwood price and pulp export price. Furthermore, imports of birch pulpwood seem to have complemented the domestic market rather than to have been a substitute for it.     

The Swedish hardwood sawmill industry: Structure,present status and development potential

Abstract

This study describes the Swedish hardwood sawmill industry with respect to its structure, raw material, production and market conditions in order to seek ways of increasing the competitiveness of the industry. Fifteen sawmills were studied through observations and interviews. The Swedish hardwood sawmill industry creates job opportunities in sparsely populated areas and uses a biological raw material which is important for environmental biological diversity. Any decrease in the use of this material will mean a drop in the incentive for forest owners to cultivate deciduous forests. Today, the hardwood sawmill industry is experiencing problems in securing the supply of raw material of the desired quality, i.e. without knots and discoloured heartwood (red-heart or brown-heart). To increase the competitiveness of the Swedish hardwood sawmill industry, the raw material supply must be secured. Production should be geared towards products demanded by the market, and new markets need to be entered.     

Carbon in Terrestrial Systems

Abstract

This analysis reviews the state of the knowledge regarding carbon sequestration in terrestrial biomass with specific focus on tropical systems in Central America and Panama. Natural forests, exotic plantations, native species plantations, and agroforestry systems are considered in light of their carbon sequestration potential, their initiation and maintenance costs, and their ability to access the emerging regulated and informal carbon markets. All four of these systems show great potential to take up or store carbon and thus contribute to atmospheric reductions of C0₂. Research, investment, and institutional support are required to assist in the clear definition and expansion of carbon supply possibilities for market transactions.     

A United States View on Changes in Land Use and Land Values Affecting Sustainable Forest Management

Summary

With increasing opportunity costs of keeping land in forests because of increasing values for other land uses, such as for developed uses, forest ownership may become less attractive for some landowners and the return on investment less viable for both private and public landowners. This raises the question of what will become of the forests and the resources the forest supports, such as water and wildlife, if owners of the forests find it too costly to manage the forest. Land markets provide evidence on revealed behavior about what people are willing to actually pay for a bundle of rights necessary to gain access to land that can provide forest-based goods and services into perpetuity. However, owing to market failures and the nature of some forest land values, markets do not always reveal true forest land values, as discussed below. Allocation of land by use and cover types is a key determinant in sustainable forest management, with changes in land values providing important signals to land managers. Land valuation differs under market-oriented economies, emerging values in transition economies, and administered values in countries with command economies and is influenced by interactions between the environment and humans, including land ownership, use, and management.     

Public cost-sharing in private forest investments in Finland 1983–2000

A model of public cost-sharing in private forest investment is proposed to describe the substitution between the private financing of investments and public investment assistance. The substitution depends on the curvature conditions of the forest investment function on forest stock. When the second-order investment effects are close to zero or when they do not exist, the funding substitution will not take place. A simultaneous econometric model for private and public funding employing forest incomes, forest income taxes, interest rates, investment scale and market wood price expectations as exogenous variables is estimated. The model estimation based on Finnish regional data in 1983–2000 rejects the substitution alternative. A 10% increase in private investment funding increases the demand for public funding at the same rate, but a 10% increase in public funds will increase the private funds supply by 2.5%. Significant income effects are found only in the case of private funding. In northern Finland, the scale effects are large for public financial assistance. The effects of the income tax reform on the private supply of funds are positive, especially for the new wood-sales profit taxation, whereas the interest rate and price expectation effects are negative.

动态经济评价模块原理及其在林分经营模型中的应用*

通过动态经济评价模块，将成本构成要素分解成材料消耗，用工消耗和资金换算单位乘子等基本元素，而用以基本元素以自变量的函数描述成本及收入核算项目，借助模块内专门设计的解码过程，通过外部文件，修改成本构成要素的分解层次和描述单位，重新设计成本核算项目的描述函数，实现了经济评价模块同林分生长模型间的柔性结构匹配。压缩数据向量及其相应算法的引入，不仅减少了内存空间的占用量，而且提高了经济评价模块的运行速度，     

Inter-regional comparisons of production technology in Canada's timber harvesting industries

Enhanced productivity in the logging industry is one of the key factors that determine the competitiveness of the forest products sector. Policy measures to improve efficiency must therefore start at the timber harvesting stage. This study analyzed and compared the production technologies in the timber harvesting industries of British Columbia (B.C.), Ontario, and Quebec, which are Canada's largest timber producing provinces. The study used annual data of log output and four inputs: labour, capital, energy, and materials from 1961 to 1999. Six models, encompassing different restrictions on the long-run translog cost function, were applied to each industry to determine the best technology for that industry. The cost function that best described each industry's technology was used to estimate own- and cross-price elasticities, input substitution elasticities, scale effects, technological change and bias, and total factor productivity. The production technologies of B.C. and Quebec were best described by homothetic, linearly homogeneous functions, while that of Ontario was found to be non-homothetic. Based on the Morishima elasticities of substitution, the results in general indicated inelastic substitution among all the four factor inputs. As a result the industries had limited options to make input adjustments with respect to changes in relative input prices; and hence required output levels were maintained at higher production costs. All three provincial industries exhibited biased technological changes, saving on capital and labour, and intensively using energy and materials. Labour and capital therefore recorded higher productivity than energy and materials over all provinces; consequently, efforts at improving the efficiency of the logging industries should focus on increasing the productivity of the latter inputs. Scale effects ranged from 2.17 in B.C. to 1.44 in Quebec implying that the timber harvesting industries appeared to have had the greatest potential for cost reduction through output expansion. In a competitive market structure, the strategic policy implication of these scale effects is that low-cost producers force high-cost industries out, leading to industrial concentration. The low levels of technological change in the timber harvesting industries observed in this study may reflect these industrial concentration problems. Policies that reduce the rental cost of capital, such an increase in investment tax credits and cuts in the corporate income tax rates have the potential to increase productivity and hence improve on the timber industry's competitive position.     

Difficulties of wooden housing production sector in Brazil

ABSTRACT

This research identified the central hindrances found in Brazilian wooden housing scenario in the fields of finished product, producer, and sector. Thus, a questionnaire with three qualitative questions based on multiple-choice answers allowed investigating the difficulties faced by these producers in Brazil. This sector still faces obstacles in the three observed fields, especially for the negative aspects of house financing, housing technique certification, skilled hand labour, general costs incurred in local production, tax exemptions, public policies, utilization of wooden houses in public works, and other factors. These obstacles in wooden housing sector have created limitations of production potential and restrictions of its market. A current panorama from these obstacles was formed, which could contribute with sectoral development. Actions such as creation and institution of incentives and specific policies should consolidate as the main direction to reduce these difficulties faced by the wooden housing producers.     

Regional employment trends of wood-based industries in Germany’s forest cluster: a comparative shift-share analysis of post-reunification development

After reunification in 1990, Germany’s forest cluster developed anew and employment in the wood-based industries differentiated very quickly. With more than 900,000 employees, it is now considered one of the most important industrial sectors in the country. This paper analysed general trends in the development of employment of wood-based industries in the German forest cluster between 1999 and 2006. Shift-share analysis was considered to be the most appropriate way to determine regional differences in the subsection DD/20 ‘Manufacture of wood and wood products’ of the code “Classification of Economic Activities in the European Community, Revision 1.1” (NACE): the sawmill industry, the wood-based panel industry, the wood construction industry, the wood-based packaging industry, and the miscellaneous wood products industry. This method decomposed the change of employment into three different components that are due to that change: national trends, (industrial) sectoral trends, and regional conditions. Employment in the selected wood-based industries showed a significantly larger decrease than overall trends in both the producing industries and the whole economy of Germany: a continual loss of employees could be observed over the time period, affecting almost all of the selected wood-based industries. However, federal states in western and eastern Germany experienced divergent trends between 1999 and 2006, as different absolute and relative regional share components indicated in the shift-share analysis. This method allows of identifying regional disparities and characterising regions with positive (mainly eastern federal states) and negative (mainly western federal states) rates of employment growth. The research suggests that positive employment trends in eastern Germany’s wood-based industries can mainly be attributed to regional factors such as comparatively higher subsidies for new investments, lower labour costs, lower land values or infrastructural peculiarities.

Effect of land prices,transportation costs,and site productivity on timber investment returns for pine plantations in Colombia

The relative importance of land costs, site quality, and forest location are major concerns in forestry investments, but little research has been done to assess the impacts of these or other factors on financial returns. In response to this issue, the effects of land prices, wood transportation costs, site productivity, and discount rates on timber investment returns for pine plantations in the Andean Region in Colombia were estimated. For all the scenarios analyzed, the internal rate of return varied between 6.4 and 15.6%. High site quality with high growth rates were profitable in all scenarios at real discount rates ranging from 8 to 12%, but low site qualities seldom had positive net present values. Less expensive land and locations close to mills had better rates of return. More distant locations, poor quality sites, or areas with high land costs generally did not meet the discount hurdle rates. Site quality, which is the factor most easily manipulated by intensive forest management and improved technology, was substantially more important than land prices and transportation differences in determining timber investment returns.     

A Geographical Analysis of the Swedish Woodfuel Market

The geographical variation in Swedish woodfuel market characteristics for the district heating sector has been studied using Geographical Information Systems (GIS) and cross - sectional Tobit analysis. The results indicate that local availability and competition for woodfuels influence the woodfuel consumption at inland heating plants. The factors affecting the decision to use woodfuel at heating plants close to seaports, however, were not captured by the model, suggesting that coastal location reduces dependency on the local woodfuel market. The effects of changes in local woodfuel availability on woodfuel use by an inland heating plant are presented and discussed.     

定向刨花板投资效益的分析

定向刨花板是一种新型高强度木质刨花板，价格适中，用途广泛，原料来源丰富，投资效益好。如在我国能积极开展应用技术的研究，以开发和拓宽市场，亦将是人反工业投资的优选项目之一。     

林业外资投资的贸易效应及对策研究

林业外资投资及我国林产品市场的特点, 决定了目前我国林业外资投资的创造效应相对替代效应来说表现得更为明显, 相应地促进了林产品贸易和出口的快速增长, 而对进口的影响则较弱。不过, 现阶段林业外资投资的增加对林产品出口贸易结构改善的影响并不大, 因此有必要采取措施改变这种状况。     

Supplementing pine with European beech and poplar in oriented strand boards

Abstract

The objective of the study was to compare the properties of oriented strand boards (OSBs) made from the following mixtures: European beech and poplar, beech and pine, poplar and pine and 100% pine (i.e. the conventional raw material for OSB in Europe). Panels with 50–50% of beech-poplar/beech-pine/poplar-pine at two density levels of 650 kg/m³ and 720 kg/m³ were made with 5% pMDI (poly methylene di-isocyanate) as binder at 180°C and 240s as press conditions. Results showed that panels comprising a mixture of European beech and poplar have higher mechanical properties compared to panels made with mixtures of pine-beech or pine-poplar. In addition, for all panels, when density is increased from 650 kg/m³ to 720 kg/m³, mechanical properties increased. Internal bond values for all designs were in the same range, especially at higher density (720 kg/m³). The pure pine panels showed lower values between different designs. Thickness swelling, an important physical property of OSB, improved when face and core layers consisted of a mixture of beech and poplar strands.     

Discount rate and harvest policy: implications for Baltic forestry

The free market economy, to which East European countries are increasingly being exposed, implies that classical budgeting techniques in the form of the Faustmann approach present themselves as the tools of choice for forest investment analysis. One implication is that the choice of a proper discount rate (r) must be made as part of the basis for formulating a harvest policy. The paper discusses this choice in the light of practice as well as theory, and, using Lithuania as a case, examines the potential economic and political impact of softening the current restrictions on forest management. A review of the debate on discounting in forestry is provided. A statistical analysis of the relation between reported r values and internal rates of return (IRR) from numerous studies on forestry investments reveals a strong correlation between r and IRR. Possible explanations are provided. Analysis reveals that application of any positive r will significantly change forestry practice in Lithuania. Setting r=3%, slow growing species are to be replaced by fast growing species, and rotation periods should be substantially shortened. The standing volume of (over-)mature forests is approximately 160 million m³, as compared with the currently harvestable volume of approximately 40 million m³ according to the minimum allowable rotation age. The macroeconomic perspectives of cashing some of the mature forest for the small transition economy are discussed, taking into account the effects of externalities of forests. Consequently we suggest an alternative formulation of the normal forest. Finally, based on these considerations, a real r of 0–2% is suggested for State forestry in Lithuania. A post-tax r of 2% is advocated for private forestry, with potential project specific deviations downward to 0 or upward to 4%. It is stressed that discount rate is viewed as one of the important decision parameters and due regard should be given to non-timber forest outputs, social and institutional settings and other factors.     

Effects of Public Financed Aid on Private Forest Investments: Some Evidence from Finland, 1963–2000

The relationship between private forest investments and public cost sharing (government financial aid to private investment projects) was first analysed with an economic optimization model. In the general case the model predicted that cost-sharing causes substitution between private funding of investments and public aid. However, in some special cases complementarities were not ruled out. Next, the model predictions were tested with a translog cost function specification of forest investment fund shares. Aggregate data from Finland in years 1963–2000 were used. The substitution and own price elasticities of purely private, subsidized individual and subsidized collective investments are derived from maximum likelihood estimates of translog system model, allowing for investment scale effects. Investments supported by public funding behave in a strongly complementary fashion to each other. Some substitution of subsidized private funding for non-subsidized private funding was found. Strong scale effects and forest investment incentives were found among forest owners in response to public investment aid.     

水青树不同径级个体构件水平上的生殖配置研究

[目的]通过对濒危植物水青树的生殖配置进行研究,探讨其生殖与生存之间的权衡关系,揭示其生活史对策及其濒危机制。[方法]对固定样地内的不同径级水青树个体的标准生殖枝生物量进行观测,对不同径级个体的差异采用多重比较分析,对生殖配置(RA)、生殖构件与营养构件生物量采用相关性分析和线性回归分析,对种子数量与千粒质量进行相关性分析。[结果](1)随径级的增大,水青树的生殖和营养投入呈现同增同减的趋势,没有明显的权衡关系;(2)水青树的生殖分配(RA)随径级的变化呈现先上升后下降的趋势;(3)水青树的生殖投入与营养投入、叶生物量之间呈显著正相关,而其RA与营养投入、叶生物量之间呈显著负相关;(4)生殖构件各组分中,种子生物量所占比重均为最小,且远远低于生殖的附属结构(果序轴和果皮);种子数与种子大小之间存在权衡关系。[结论]在构件水平上,水青树的营养投入对生殖投入具有促进作用;其生殖期可划分为生殖初始期、生殖增长期、生殖高峰期和生殖衰退期等4个时期;其种子特征在生殖不同时期分别采取不同的生活史对策,可能是水青树在长期演化发展过程中形成的生殖适应性对策。