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Title: Financial constraints to `sustainable` selective harvesting of forests in the eastern Amazon: Bioeconomic modeling of a forest stand in the state of Para, Brazil. Draft report

Technical Report ·
OSTI ID:91389

A key issue in the debate over sustainable forest management is the trade-off between the short-term economic benefits of extracting timber aggressively for commercial sale and the long-term economic and ecological benefits of allowing natural forests to stand. The study presents a general methodology for assessing the feasibility of long-term forest management considering natural timber growth rates, mortality, and changes in timber prices and interest rates. Focusing on a 100-ha stand in the Paragominas region of the Eastern Amazon in the State of Para, Brazil, the study simulates the short-term costs and benefits of various levels of harvesting intensity on trees at various stages of growth, and compares the results with the potential returns on 30-day CDs invested over 25 years to determine the opportunity cost of holding mature stands of commercial trees between cutting cycles. Results show improved financial returns as a function of increasing harvest intensity due to the high discount rate in Brazil.

Research Organization:
Chemonics International Consulting Div., Washington, DC (United States). Development Strategies for Fragile Lands Project
OSTI ID:
91389
Report Number(s):
PB-95-243341/XAB; CNN: Contracts AID-DHR-5438-Q-00-1091-00, AID-ANE-0004-A-00-0048-00; TRN: 52263156
Resource Relation:
Other Information: PBD: Jun 1994
Country of Publication:
United States
Language:
English