Journal of Forest Economics > Vol 11 > Issue 1

Financial optimisation of forest-level harvest scheduling in Ireland – A case study

Dermot Tiernan, , Maarten Nieuwenhuis, , maarten.nieuwenhuis@ucd.ie
 
Suggested Citation
Dermot Tiernan and Maarten Nieuwenhuis (2005), "Financial optimisation of forest-level harvest scheduling in Ireland – A case study", Journal of Forest Economics: Vol. 11: No. 1, pp 21-43. http://dx.doi.org/10.1016/j.jfe.2005.02.001

Published: 01 Jun 2005
© 0 2005 Dermot Tiernan
 
Subjects
 
Keywords
JEL Codes:Q230
Harvest schedulingOptimisationLP and MIPNet present value (NPV)Ireland
 

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In this article:
Introduction
Background to the study
Materials and methods
Results
Discussion
Conclusions

Abstract

World-wide, forest managers have long recognised the benefits of using optimisation-based modelling techniques to improve decision-making. With no such systems in operation in Irish forestry, optimisation-based economic models were developed for harvest scheduling on a forest level within the context of a hierarchical approach. These new techniques were compared to those currently employed by Coillte Teoranta (the Irish Forestry Board). The development of the optimisation models involved the evaluation of: different management options strategies, optimisation techniques, model types and constraint strategies. Evaluation of the models was carried out in Clonbrock forest (294.8ha), a typical Irish plantation forest, owned and managed by Coillte. The application of the selected model resulted in an increase in net present value (NPV) over the 5-year planning period of 14.2% compared to the NPV produced by Coillte's current process.

DOI:10.1016/j.jfe.2005.02.001