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 · Wed Jun 01 04:00:00 EDT 1994

OSTI ID:91389

Hardner, J J; Rice, R E

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
• Country of Publication: United States
• Language: English

Related Subjects

09 BIOMASS FUELS
29 ENERGY PLANNING, POLICY, AND ECONOMY
BASELINE ECOLOGY
BRAZIL
COST BENEFIT ANALYSIS
ECONOMIC DEVELOPMENT
ENVIRONMENTAL IMPACTS
FORESTRY
RESOURCE POTENTIAL