scholarly journals Multifunctional Forestry and Interaction with Site Quality

Forests ◽  
2019 ◽  
Vol 11 (1) ◽  
pp. 29
Author(s):  
Ing-Marie Gren ◽  
Franklin Amuakwa-Mensah
Keyword(s):  
Carbon Sequestration ◽  
Dynamic Optimization ◽  
Net Present Value ◽  
Economic Value ◽  
Forest Growth ◽  
Site Quality ◽  
Present Value ◽  
Site Specific ◽  
Dynamic Optimization Model ◽  
Multifunctional Forestry

Several studies have shown the economic value of various ecosystem services provided by the forest. However, the economic value of how site-specific ecological conditions interact with other functions provided by the forest, such as timber value and carbon sequestration, has been less studied. As a result, this paper constructs a numerical discrete dynamic optimization model to estimate the economic value of site quality, taking into account its interaction with timber value and carbon sequestration, in Swedish forests. Analytical results show that the inclusion of the interaction of site quality with forest growth affects the optimal volume of harvest per year, compared to the case without consideration of site quality. The empirical results show that net present value, when considering timber values plus carbon sequestration and site quality interaction, is higher than the case where only timber and carbon sequestration were considered. However, the calculated net present value is sensitive to, in particular, the price of carbon sequestration and discount rate.

scholarly journals Estimating the aboveground carbon sequestration and its economic value (case study: Iranian Caspian forests)

2017 ◽  
Vol 63 (No. 11) ◽  
pp. 511-518 ◽  
Author(s):  
Mohammadi Zohreh ◽  
Limaei Soleiman Mohammadi ◽  
Lohmander Peter ◽  
Olsson Leif
Keyword(s):  
Carbon Sequestration ◽  
Net Present Value ◽  
Economic Value ◽  
Volume Growth ◽  
Allometric Equation ◽  
Present Value ◽  
Diameter Increment ◽  
Aboveground Carbon ◽  
The North ◽  
Annual Volume

The aim of the study is to estimate the aboveground carbon sequestration and to determine the economic value of forests in carbon sequestration as a way of mitigating climate change. This research was conducted at Asalem forests in the north of Iran. In order to estimate the amount of annual carbon sequestration, the annual volume growth of stand was determined using the diameter increment data and tariff. The amount of carbon sequestration was estimated based on wood density and using the allometric equation. The carbon model was obtained for each species. The value of sequestrated carbon in stumpage and the net present value of carbon sequestration were determined in order to estimate the economic value of carbon sequestration. Results indicated that the annual volume growth per hectare and the carbon stored are 6.023 m<sup>3</sup>·yr<sup>–1</sup> and 2.307 t·ha<sup>–1</sup>, respectively. Finally, the carbon sequestration value of stumpage and the net present value of carbon sequestration are 11,023.753 and 790.361 (10,000 IRR·t<sup>–1</sup>·ha<sup>–1</sup>), respectively. Our results are very useful in estimating the total economic value of Asalem forests and other Iranian Caspian forests in the future.

scholarly journals A Scorecard to Detect Financial Leverage Profitability

2018 ◽  
Vol 13 (3) ◽  
pp. 244
Author(s):  
Laura Broccardo ◽  
Luisa Tibiletti ◽  
Pertti Vilpas
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Weighted Average ◽  
Cost Of Debt ◽  
Corporate Management ◽  
External Financing ◽  
Present Value ◽  
Financial Decisions ◽  
Proposed Model ◽  
The Cost

This study investigates how balancing internal and external financing sources can create economic value. We set a financial scorecard, consisting of the Cost of Debt (COD), Return on Investment (ROI), and the Cost of Equity (COE). We show that COE should be a cap for COD and a floor for ROI in order to increase the Net Present Value at Weighted Average Cost of Capital and the Adjusted Present Value of the levered investment. However, leverage should be carefully monitored if COD and ROI go off the grid. Situations where leverage has the opposite effect on value creation and the Equity Internal Rate of Return are also discussed. Illustrative examples are given. The proposed model aims to help corporate management in financial decisions.

scholarly journals Estimation of the Value of Ecosystem Carbon Sequestration Services under Different Scenarios in the Central China (the Qinling-Daba Mountain Area)

2019 ◽  
Vol 12 (1) ◽  
pp. 337 ◽  
Author(s):  
Yuyang Yu ◽  
Jing Li ◽  
Zixiang Zhou ◽  
Li Zeng ◽  
Cheng Zhang
Keyword(s):  
Carbon Sequestration ◽  
Organic Carbon ◽  
Soil Organic Carbon ◽  
Soil Carbon ◽  
Carbon Storage ◽  
Discount Rate ◽  
Net Present Value ◽  
Carbon Price ◽  
Present Value ◽  
Mountain Area

The Qinling-Daba Mountain area is a transitional zone between north and south China and not much is known about its carbon storage, particularly its pool of soil organic carbon (SOC). Given this shortcoming, more reliable information regarding its SOC is needed. In light of this, we quantified above and below-ground carbon sinks using both the Carnegie-Ames-Stanford approach (CASA) model and an improved carbon cycle process model. We also assessed the net present value (NPV) for carbon budgets under different carbon price and discount rate scenarios using the NPV model. Our results indicated that the net primary productivity (NPP) was lower in places with low density forests that were situated at high elevation. The spatial distribution of carbon storage depended on NPP production and litter decompositon, which reflected specific vegetation as well as temperature and moisture gradients. The lowest amounts of carbon storage were in the center of the Qinling Mountains and also partly in the Daba area, which is a location associated with sparse grassland. Contrastingly, the broad-leaved forested area showed the highest amount of carbon storage. NPV was positively correlated with discount rate and carbon prices, thus resulting in the highest values in the forests and grassland. The net present value of total soil carbon sequestration in the six scenarios in 2015 was 3.555 b yuan, 3.621 b yuan, 5.421 b yuan, 5.579 b yuan, 7.530 b yuan, 7.929 b yuan; The net present value of total soil carbon sequestration in 6 scenarios in 2017 is 2.816 b yuan, 2.845 b yuan, 4.361 b yuan, 4.468 b yuan, 6.144 b yuan, 6.338 b yuan (billion = 109; b; RMB is the legal currency of the China, and its unit is yuan, 1 euro = 7.7949 yuan, and 1 pound = 9.2590 yuan). Levying a carbon tax would be a notable option for decision makers as they develop carbon emission reduction policies. Given this, incorporating discount rates and carbon pricing would allow for more realistic value estimations of soil organic carbon. This approach would also provide a theoretical basis and underscore the practical significance for the government to set a reasonable carbon price.

scholarly journals The Effects of Spatial Harvest Scheduling Constraints on the Value of a Medium-Sized Forest Holding in the Southeastern United States

2005 ◽  
Vol 29 (4) ◽  
pp. 185-193 ◽  
Author(s):  
Wise H. Batten ◽  
Pete Bettinger ◽  
Jianping Zhu
Keyword(s):  
Net Present Value ◽  
Southeastern United States ◽  
Economic Value ◽  
Forest Planning ◽  
Harvest Scheduling ◽  
Present Value ◽  
Period 2 ◽  
Planning Technique ◽  
Programming Solution ◽  
Forest Plans

Abstract Forest plans related to a number of spatial harvest scheduling scenarios were developed for a medium-sized forest holding using a heuristic forest planning technique (tabu search). Green-up periods of 2 to 7 years were assessed in conjunction with the two types of adjacency constraints. The results indicate for this one property that a short green-up period (2–3 years) did not significantly affect the economic value of the forest holding studied. Longer green-up periods and smaller maximum clearcut sizes could reduce the net present value of this forest holding by as much as 5 to 15% depending on the clearcut adjacency rules used. In a validation of the heuristic solutions, we found that the best solution generated with the heuristic (for three separate problems) was within 0.25% of the integer programming solution. South. J. Appl. For. 29(4):185–193.

scholarly journals The economic value of an investment in physiotherapy education: a net present value analysis

2015 ◽  
Vol 61 (3) ◽  
pp. 148-154 ◽  
Author(s):  
George Rivers ◽  
Jonathan Foo ◽  
Dragan Ilic ◽  
Peter Nicklen ◽  
Scott Reeves ◽  
...  
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Present Value ◽  
Value Analysis ◽  
Physiotherapy Education

The Role of Economic Uncertainty on the Block Economic Value – a New Valuation Approach / Rola Czynnika Niepewności Przy Obliczaniu Wskaźnika Rentowności – Nowe Podejście

2012 ◽  
Vol 57 (4) ◽  
pp. 991-1014 ◽  
Author(s):  
H. Dehghani ◽  
M. Ataee-Pour
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Operating Cost ◽  
Mine Planning ◽  
Open Pit ◽  
Economic Uncertainty ◽  
Present Value ◽  
Wrong Decision ◽  
Binomial Tree ◽  
Conventional Methods

Abstract The block economic value (BEV) is one of the most important parameters in mine evaluation. This parameter can affect significant factors such as mining sequence, final pit limit and net present value. Nowadays, the aim of open pit mine planning is to define optimum pit limits and an optimum life of mine production scheduling that maximizes the pit value under some technical and operational constraints. Therefore, it is necessary to calculate the block economic value at the first stage of the mine planning process, correctly. Unrealistic block economic value estimation may cause the mining project managers to make the wrong decision and thus may impose inexpiable losses to the project. The effective parameters such as metal price, operating cost, grade and so forth are always assumed certain in the conventional methods of BEV calculation. While, obviously, these parameters have uncertain nature. Therefore, usually, the conventional methods results are far from reality. In order to solve this problem, a new technique is used base on an invented binomial tree which is developed in this research. This method can calculate the BEV and project NPV under economic uncertainty. In this paper, the BEV and project NPV were initially determined using Whittle formula based on certain economic parameters and a multivariate binomial tree based on the economic uncertainties such as the metal price and cost uncertainties. Finally the results were compared. It is concluded that applying the metal price and cost uncertainties causes the calculated block economic value and net present value to be more realistic than certain conditions.

scholarly journals Assessment of the Efficiency of Different Forms of Financing

2019 ◽  
Vol 8 (3) ◽  
pp. 1989-1995
Keyword(s):  
Income Tax ◽  
Net Present Value ◽  
Economic Value ◽  
Value Added ◽  
Comprehensive Assessment ◽  
Economic Value Added ◽  
Present Value ◽  
Return On Equity ◽  
Investment Capital ◽  
Tax Savings

The study analyzes various criteria and forms for assessing the effectiveness of financing the activities of enterprises. A methodological toolkit has been developed for the comprehensive assessment of the effectiveness of various forms of financing the activities of enterprises, taking into account the significance of criteria. The following criteria are considered: tax savings on income tax excluding the time factor, cost of the i-th source of attraction, economic value added, increase in return on equity, the profitability of investment capital, net present value.

scholarly journals Estimating stand-level economic impacts of black bear damage to intensively managed forests

2018 ◽  
Vol 48 (7) ◽  
pp. 758-765 ◽  
Author(s):  
Kristina N. Kline ◽  
Jimmy D. Taylor ◽  
Anita T. Morzillo
Keyword(s):  
Net Present Value ◽  
Black Bear ◽  
Forest Growth ◽  
Total Loss ◽  
Black Bears ◽  
Economic Losses ◽  
Present Value ◽  
Damage Scenario ◽  
Forest Growth Model ◽  
Intensively Managed

Black bears (Ursus americanus Pallas, 1780) peel conifers in early spring to forage on energy-rich vascular tissues, resulting in damage to timber stands. The objective of our study was to develop and demonstrate a conceptual framework and methods for estimating stand-level volume and economic losses from black bear damage. We created tree lists from surveys of healthy and bear-damaged trees in timber stands of western Washington and Oregon. The forest growth model Forest Vegetation Simulator (FVS) was used to project stand volume under two damage scenarios and an undamaged scenario. One damage scenario (salvage) accounted for mortality and volume losses of fully and partially girdled trees; a second scenario (total loss) assumed complete loss of all trees peeled by black bears, regardless of peeling severity. The Fuel Reduction Cost Simulator (FRCS) was applied to estimate the value of logs delivered to the mill after accounting for logging and hauling costs associated with harvest. Present value of stands was calculated to translate volume losses into economic losses associated with bear damage. Economic losses ranged from 4% to 16% (salvage) and from 17% to 46% (total loss) of net present value. Our approach can be adapted for other forest settings and for forest management plans that assess wildlife damage.

scholarly journals Multistage Sample Average Approximation for Harvest Scheduling under Climate Uncertainty

Forests ◽  
2020 ◽  
Vol 11 (11) ◽  
pp. 1230
Author(s):  
Martin B. Bagaram ◽  
Sándor F. Tóth
Keyword(s):  
Climate Change ◽  
Net Present Value ◽  
Timber Harvest ◽  
Sample Average Approximation ◽  
Expected Value ◽  
Forest Growth ◽  
Growth And Yield ◽  
Present Value ◽  
Sample Average ◽  
Average Approximation

Forest planners have traditionally used expected growth and yield coefficients to predict future merchantable timber volumes. However, because climate change affects forest growth, the typical forest planning methods using expected value of forest growth can lead to sub-optimal harvest decisions. In this paper, we propose to formulate the harvest planning with growth uncertainty due to climate change problem as a multistage stochastic optimization problem and use sample average approximation (SAA) as a tool for finding the best set of forest units that should be harvested in the first period even though we have a limited knowledge of what future climate will be. The objective of the harvest planning model is to maximize the expected value of the net present value (NPV) considering the uncertainty in forest growth and thus in revenues from timber harvest. The proposed model was tested on a small forest with 89 stands and the numerical results showed that the approach allows to have superior solutions in terms of net present value and robustness in face of different growth scenarios compared to the approach using the expected growth and yield. The SAA method requires to generate samples from the distribution of the random parameter. Our results suggested that a sampling scheme that focuses on generating high number of samples in distant future stages is favorable compared to having large sample sizes for the near future stages. Finally, we demonstrated that, depending on the level of forest growth change, ignoring this uncertainty can negatively affect forest resources sustainability.

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