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Economic Analysis of Three Generation Alternatives in Maine's Spruce-Fir Forest

This study investigates three regeneration regimes using the net present value criterion and mill delivered cost per cord. These three systems are: (1) tree-improvement programs for Japanese larch (Larix leptolepis (Sieb. and Zucc.) Gord.); (2) natural spruce-fir precommercially thinned at ten years; and (3) a natural spruce-fir stand unmanaged. Real discount rates, percent of gain in volume because of the program used, and real increases in the value of the pulpwood (mill delivered price) were varied for sensitivity analysis. The net present value criterion indicated at what year the stands should economically be harvested. Results indicated that as discount rates increased, economic rotation length decreased. Percent volume gain had little effect on the rotation length. Real increase in mill delivered prices however, did affect rotation length.


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Author(s): Timothy R. Rensema, Katherine K. Carter

Publication: Tree Improvement and Genetics - Northeastern Forest Tree Improvement Conference - 1985