Economic Consequences of Different Management Approaches to Even-Aged Silver Fir Forests

• Published in: Croatian Journal of Forest Engineering Vol. 39; no. 2; p. 299
• Main Authors: Beljan, Karlo, Posavec, Stjepan, Čavlović, Jura, Teslak, Krunoslav, Knoke, Thomas
• Format: Paper
• Language: English
• Published: Šumarski fakultet Sveučilišta u Zagrebu 25.07.2018
• Subjects: cost control; IRR; management transformation; NPV; silver fir
• ISSN: 1845-5719; 1848-9672

Economic analysis of even-aged fir stand management was illustrated using the example of the forests of the Croatian Dinaric region, as well as their transformation into more stable unevenaged structures. Two scenarios (even-aged, uneven-aged) were simulated against the backdrop of the existing forest stand structure of future forest stand management during a 140-year period using forest growth modeling software MOSES version 3.0 in order to identify economic differences amongst different scenarios both at stand level and at forest level. The research included forest management analysis throughout the transformation period and subsequently the continuation of balanced state forest management. Moreover, the research also provided the opportunity of forest purchase within the price range from 1000 to 12,500 EUR/ha, amid assumed fluctuation of selling prices of timber assortments throughout the simulation period. Discount rates from 1% to 5% were used during the economic analysis. The research findings showed that, according to harvesting costs, Net Present Value and Internal Rate of Return, uneven-aged forest management system, including the transformation period, achieved superior economic results, albeit at discount rates that exceeded 1.24%. The conclusion was reached that, according to all economic criteria, uneven-aged mixed silver fir-beech management system is preferred compared with the pure even-aged silver fir management.