Epsilon Archive for Student Projects

Abstract

In Sweden, birch represents 13 percent of the total timber supply. The majority of the trees never reach their full potential because they are cleared or thinned out in favour of spruce and pine. There are many benefits of birch incorporation, increased biodiversity, reduced storm and fire damage, prevention against root rot and promotion of biodiversity are just a few. The following study is a presentation of economic differences between low canopy forestry and traditional rotation forestry.
The Kronoberg method (KBM) was compared with traditional rotation forestry (BAU) through four analyses in Heureka's BeståndsVis with an interest rate of 2,5 % for each location G24 and G28. To compare how the net present value is affected sensitivity analyses of 2 %, 3 % and 4 % rate were investigated. The analyses were guided by growth models for northern Sweden and SCA's price list for delivery timber in the Umeå area. The purpose of the analyses was to determine, from the same included stock, a NPV for each location and management method in order to be able to compare the four different scenarios. The total production in the four management alternatives was also compared.
The analyses showed that KBM gave a higher NPV than BAU on G24 while BAU gave a higher NPV than KBM on G28. The sensitivity analyses for G24 and G28 showed that at 2 % interest, BAU has a higher NPV than KBM, while at 4 % interest, KBM has a higher NPV than BAU. Total production was higher with KBM at both locations.