14 th ssafr systems analysis in forestry, reñaca, chile, march 8-11, 2011
DESCRIPTION
Dynamic Economical Optimization of Sustainable Forest Harvesting in Russia with Consideration of Energy, other Forest Products and Recreation Peter Lohmander Professor Dr., SUAS, Umea, SE-90183, Sweden [email protected] Zazykina Liubov PhD Student, Moscow State Forest University. 14 th SSAFR - PowerPoint PPT PresentationTRANSCRIPT
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Dynamic Economical Optimization of Sustainable Forest Harvesting in Russia
with Consideration of Energy, other Forest Products and Recreation
Peter Lohmander Professor Dr., SUAS, Umea, SE-90183, Sweden [email protected]
Zazykina LiubovPhD Student, Moscow State Forest University
14th SSAFR Systems Analysis in Forestry,
Reñaca, Chile, March 8-11, 2011
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Typical Forest Stock Development Without Harvesting
0
50
100
150
200
250
300
350
400
0 20 40 60 80 100 120
Time (Years)
m3
/ ha
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2dxx ax bx
dt
Growth
Compare:Verhulst, Pierre-François (1838). "Notice sur la loi que la population poursuit dans son accroissement". Correspondance mathématique et physique 10: pp. 113–121.
( 3 / )x Stock m ha
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Growth
0
1
2
3
4
5
6
0 50 100 150 200 250 300 350 400 450
Stock (m3/ha) = x
m3
/ha
/ye
ar
21 1
20 8000
dxGrowth x x x
dt
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Stock = x(t)
0
50
100
150
200
250
300
350
400
0 20 40 60 80 100 120
Time (Years) = t
m3
/ ha
21 1
20 8000
dxx x x
dt
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2dxx ax bx
dt
2
1dx dt
ax bx
A separable differential equation
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2
1dx dt
ax bx
2
1 1
( ) ( )
c D
x a bx x a bx ax bx
2
( ) 1
( )
c a bx Dx
x a bx ax bx
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2
( ) 1
( )
c a bx Dx
x a bx ax bx
1ca cbx Dx
( ) 1ca cb D x
1ca
bD cb
a
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2
1dx dt
ax bx
( )
c Ddx dt
x a bx
1
( )
ba a
dx dtx a bx
1
( )
bdx a dt
x a bx
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1
( )
bdx a dt
x a bx
1 1
0 0
1
( )
x t
x t
bdx a dt
x a bx
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1 1
0 0
1 1
( )
x t
x t
adx a dt h
ax bxb
1 1
0 0
1 1
( )
x t
x t
adx a dt h
x h x b
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1 1
0 0
1 1
( )
x t
x t
adx a dt h
x h x b
1 1
0 0( ) ( )
x t
x tLN x LN h x at
1 1 0 0 1 0( ) ( ) ( ) ( ) ( )LN x LN h x LN x LN h x a t t
011 0
0 1
( )
( )
h xxLN aT T t t
x h x
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011 0
0 1
( )
( )
h xxLN aT T t t
x h x
01
0 1
( )
( )aTh xxe
x h x
01
1 0( ) ( )
aTx ex
h x h x
01 1
0
( )( )
aTx ex h x
h x
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01 1
0
( )( )
aTx ex h x
h x
0 01
0 0
1( ) ( )
aT aTx e x ex h
h x h x
0
01
0
0
( )
1( )
aT
aT
x ehh x
xx e
h x
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0
01
0
0
( )
1( )
aT
aT
x ehh x
xx e
h x
10
0
1( ) 1aT
xh x
ehx h
1
0
1
1 1 1aT
x
ex h h
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1
0
1
1 1 1 aT
x
eh x h
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Stock (m3/ha)
Time (Years)
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Stock Development
0
20
40
60
80
100
120
140
0 10 20 30 40 50 60 70 80
Time (Years)
m3
/ ha
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The Present Value Function
1 00
( , )(.)
1rt
c ph t hc ph
e
Profit from the first harvest Present value of an infinite
series of profits from the later harvest
Stock Development
0
20
40
60
80
100
120
140
0 10 20 30 40 50 60 70 80
Time (Years)
m3
/ ha
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1 00
( , )
1rt
c ph t hc ph
e
Initial stock level
Rate of interest Harvest interval
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*
*
*
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y=250
y=200
y=150
Present Value
Harvest Interval (Years)
y = First HarvestVolume (m3/ha)
(SEK/ha)
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23First Harvest Volume (m3/ha)
Harvest Interval (Years)
C = 500 Vertical Scale = Present Value (SEK/ha)
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First Harvest Volume (m3/ha) Harvest Interval (Years)
C = 500 Vertical Scale = Present Value (SEK/ha)
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Harvest Interval (Years)First Harvest Volume (m3/ha)
C = 500 Vertical Scale = Present Value (SEK/ha)
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First Harvest Volume (m3/ha)
Harvest Interval (Years)
C = 500 Vertical Scale = Present Value (SEK/ha)
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First Harvest Volume (m3/ha)
Stock Level Directly After Harvest (m3/ha)
C = 100
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Stock Level Directly After Harvest (m3/ha)
Harvest Interval (Years)
C = 100 Vertical Scale = Present Value (SEK/ha)
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C = 100
C = 500
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Stock Level Directly After Harvest (m3/ha)
Harvest Interval (Years)
C = 100
C = 500
Vertical Scale = Present Value (SEK/ha)
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C = 2000
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Stock Level Directly After Harvest (m3/ha) Harvest Interval (Years)
C = 2000 Vertical Scale = Present Value (SEK/ha)
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33Stock Level Directly After Harvest (m3/ha)
Harvest Interval (Years)
C = 100
C = 2000
Vertical Scale = Present Value (SEK/ha)
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Stock Level Directly After Harvest (m3/ha)
Harvest Interval (Years)
C = 100
C = 500
Vertical Scale = Present Value (SEK/ha)
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REMREM CCF0403REM Peter LohmanderREMOPEN "outCCF.dat" FOR OUTPUT AS #1PRINT #1, " x1 t h1 PV"
FOR x1 = 10 TO 150 STEP 20FOR t = 1 TO 31 STEP 5
c = 500p = 200r = .03s = .05x0 = 300h0 = x0 - x1x2 = 1 / (1 / 400 + (1 / x1 - 1 / 400) * EXP(-.05 * t))h1 = x2 - x1multip = 1 / (EXP(r * t) - 1)pv0 = -c + p * h0pv1 = -c + p * h1PV = pv0 + pv1 * multip
PRINT #1, USING "####"; x1;PRINT #1, USING "####"; t;PRINT #1, USING "####"; h1;PRINT #1, USING "#######"; PV
NEXT tNEXT x1
CLOSE #1END
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x1 t h1 PV
90 1 4 48299 90 6 23 61906 90 11 44 62679 90 16 67 62441 90 21 91 61755 90 26 116 60768 90 31 141 59561
110 1 4 47561 110 6 25 60776 110 11 49 61115 110 16 73 60419 110 21 98 59276 110 26 123 57858 110 31 146 56266
130 1 4 46144 130 6 28 58919 130 11 52 58802 130 16 77 57656 130 21 102 56094 130 26 125 54309 130 31 148 52414
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REMREM OCC0403REM Peter LohmanderREMOPEN "outOCC.dat" FOR OUTPUT AS #1PRINT #1, " C X1opt topt PVopt h1opt x2opt"
FOR c = 0 TO 3000 STEP 100FOPT = -999999x1opt = 0topt = 0pvopt = 0h1opt = 0x2opt = 0
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FOR x1 = 10 TO 150 STEP 5FOR t = 1 TO 61 STEP 1
p = 200r = .03s = .05x0 = 300h0 = x0 - x1x2 = 1 / (1 / 400 + (1 / x1 - 1 / 400) * EXP(-.05 * t))h1 = x2 - x1multip = 1 / (EXP(r * t) - 1)pv0 = -c + p * h0pv1 = -c + p * h1PV = pv0 + pv1 * multipIF PV > pvopt THEN x1opt = x1IF PV > pvopt THEN topt = tIF PV > pvopt THEN h1opt = h1IF PV > pvopt THEN x2opt = x2IF PV > pvopt THEN pvopt = PV
NEXT tNEXT x1
PRINT #1, USING "######"; c; x1opt; topt; pvopt; h1opt; x2optNEXT cCLOSE #1END
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X1opt(C)
0
10
20
30
40
50
60
70
80
90
0 500 1000 1500 2000 2500 3000 3500
C
X1o
pt
Optimal Stock Level Directly After Harvest (m3/ha)
Set up Cost (SEK/ha)
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x2opt(C)
0
20
40
60
80
100
120
140
160
180
0 500 1000 1500 2000 2500 3000 3500
C
x2o
pt
Optimal Stock Level Directly Before Thinning Harvest (m3/ha)
Set up Cost (SEK/ha)
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h1opt(C)
0
20
40
60
80
100
120
140
0 500 1000 1500 2000 2500 3000 3500
C
h1o
pt
Optimal Thinning Harvest Volumes per occation (m3/ha)
Set up Cost (SEK/ha)
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topt(C)
0
5
10
15
20
25
30
35
40
45
0 500 1000 1500 2000 2500 3000 3500
C
top
t
Optimal Harvest Interval (Years)
Set up Cost (SEK/ha)
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PVopt(C)
59000
60000
61000
62000
63000
64000
65000
66000
0 500 1000 1500 2000 2500 3000 3500
C
PV
op
t
Optimal Present Value (SEK/ha)
Set up Cost (SEK/ha)
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What happens to the optimal forest management schedule if we also consider the value of recreation?
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•Source: Zazykina, L., Lohmander, P., The utility of recreation as a function , of site characteristics: Methodological suggestions and a preliminary analysis, Proceedings of the II international workshop on Ecological tourism, rends and perspectives on development in the global world, Saint Petersburg Forest Technical Academy, April 15-16, 2010 , http://www.Lohmander.com/SPb201004/Zazykina_Lohmander_SPbFTA_2010.pdfhttp://www.Lohmander.com/SPb201004/Zazykina_Lohmander_SPbFTA_2010.doc
Alekseevskiy forest
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• Source: Zazykina, L., Lohmander, P., The utility of recreation as a function , of site characteristics: Methodological suggestions and a preliminary analysis, Proceedings of the II international workshop on Ecological tourism, rends and perspectives on development in the global world, Saint Petersburg Forest Technical Academy, April 15-16, 2010 , http://www.Lohmander.com/SPb201004/Zazykina_Lohmander_SPbFTA_2010.pdfhttp://www.Lohmander.com/SPb201004/Zazykina_Lohmander_SPbFTA_2010.doc
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Interpretations and observations:
#1: Several alternative interpretations are possible!
#2: Furthermore, the results are most likely
sensitive to local conditions, weather conditions etc..
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Assumptions:
The ideal average forest density, from a recreational point of view, is 0.5.
Directly before thinning, the density is 0.8 .
As a result of a thinning, the density in a stand is reduced in proportion to the harvest volume.
The density of a stand is a linear function of time between thinnings.
The value of recreation is a quadratic function of average stand density in the forest area.
The recreation value is zero if the density is 0 or 1.
Under optimal density conditions, the value of recreation, per individual, hectare and year, is 30 EURO. (The value 30 has no empirical background.)
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Approximation in the software:• D = .8 * ((x1 + x2) / (2 * x2))• IF D < 0 THEN D = 0• IF D > 1 THEN D = 1• U = 120 * D - 120 * D * D• PVtotU = n / r * U
Annual Value of Recreation per Visitor
0
5
10
15
20
25
30
35
0 0,2 0,4 0,6 0,8 1 1,2
Stand Density
EU
RO
/ H
ecta
re
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N(Y) = Number of persons per 100 m2 a function of Y = Basal Area (m2/ha), Moscow
DURING THE VERY HOT SUMMER OF 2010
N(Y) Regression curve
-5
0
5
10
15
20
25
0 20 40 60 80
Y = m2perha
N =
Per
s
Forest visitors seem to prefer forests with rather high basal area levels during hot periods.
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229.6 1.52 0.0148N Y Y
2100
( 2 / )
N Number of persons per m
Y Basal area m ha
N(Y) Regression curve
-5
0
5
10
15
20
25
0 20 40 60 80
Y = m2perha
N =
Per
s
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What was the most popular basal area during the hot summer of 2010 from a
recreational point of view?
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Scenic Beauty, SB, as a function of basal area, BA. The graph has been constructed using equation SB = 5.663 – 4.086 BA/t + 16.148 ln (BA), which is found in Hull & Buhyoff (1986).
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Optimization of present value of roundwood production and
recreation
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• REM OP100409• REM Peter and Luba• REM• OPEN "outOP.txt" FOR OUTPUT AS #1• PRINT #1, " n x1opt topt h1opt x2opt
pvopt optPV opttotU"
• FOR n = 0 TO 550 STEP 55• pvopt = -9999999• optpv = -9999999• x1opt = 0• topt = 0• h1opt = 0• x2opt = 0• c = 50• p = 40• r = .03
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• FOR x1 = 10 TO 150 STEP 5• FOR t = 1 TO 100 STEP 1
• x0 = 158• h0 = x0 - x1
• x2 = 1 / (1 / 316 + (1 / x1 - 1 / 316) * EXP(-.0848 * t))
• h1 = x2 - x1
• multip = 1 / (EXP(r * t) - 1)
• pv0 = -c + p * h0• pv1 = -c + p * h1• PV = pv0 + pv1 * multip
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• D = .8 * ((x1 + x2) / (2 * x2))• IF D < 0 THEN D = 0• IF D > 1 THEN D = 1• U = 120 * D - 120 * D * D• PVtotU = n / r * U
• TPV = PV + PVtotU
• IF TPV > pvopt THEN x1opt = x1• IF TPV > pvopt THEN topt = t• IF TPV > pvopt THEN h1opt = h1• IF TPV > pvopt THEN x2opt = x2• IF TPV > pvopt THEN optpv = PV• IF TPV > pvopt THEN opttotU = PVtotU• IF TPV > pvopt THEN pvopt = TPV
• NEXT t• NEXT x1
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Approximation in the software:• D = .8 * ((x1 + x2) / (2 * x2))• IF D < 0 THEN D = 0• IF D > 1 THEN D = 1• U = 120 * D - 120 * D * D• PVtotU = n / r * U
Annual Value of Recreation per Visitor
0
5
10
15
20
25
30
35
0 0,2 0,4 0,6 0,8 1 1,2
Stand Density
EU
RO
/ H
ecta
re
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• PRINT #1, USING "######"; n; x1opt; topt;• PRINT #1, USING "######"; h1opt; x2opt;• PRINT #1, USING "########.##"; pvopt; optpv;
opttotU
• NEXT n
• CLOSE #1• END
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Optimal results: (outOP.txt)
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x1opt
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Visitors per hectare and year
cu
bic
me
tre
s p
er
he
cta
re
Optimal stock level directly after harvest
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x2opt
0
20
40
60
80
100
120
140
160
180
0 100 200 300 400 500 600
Visitors per hectare and year
cub
ic m
etre
s p
er h
ecta
re a
t th
e ti
me
of
har
vest
Optimal stock level directly before harvest
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h1opt
0
20
40
60
80
100
120
140
0 100 200 300 400 500 600
Visitors per hectare and year
cu
bic
me
tre
s p
er
he
cta
re a
nd
oc
ca
tio
n
Optimal thinning volume per occation
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topt
0
5
10
15
20
25
0 100 200 300 400 500 600
Visitors per hectare and year
ye
ars
Optimal time interval between thinnings
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Present values of forest harvesting and recreation
0
100000
200000
300000
400000
500000
600000
0 100 200 300 400 500 600
Visitors per hectare and year
EU
RO
per
hec
tare
pvopt
optPV
opttotU
In forest areas with many visitors, close to large cities, the present value of recreation may be much higher than the present value of timber production.
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Upper and lower optimal stock levels as a function of time and the number of visitors
0
20
40
60
80
100
120
140
160
180
0 50 100 150 200 250 300
Time (years)
cub
ic m
etre
s p
er h
ecta
re
x0_1
x0_2
x55_1
x55_2
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71The case with no visitors
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72The case with many visitors that prefer low density forests
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Conclusions:
A new methodological approach to optimization of sustainable continuous cover forest management with consideration of recreation and the forest and energy industries has been developed.
It maximizes the total present value of continuous cover forest management and takes all relevant costs and revenues into account, including set up costs.
Optimal solutions to some investigated cases have been analysed and reported.
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ABSTRACT Page 1(4)
Peter Lohmander and Liubov Zazykina:(Peter Lohmander, Professor, Swed.Univ.Agr.Sci., Sweden and Liubov Zazykina, PhD
Student, Moscow State Forest University, Russia)Title: Dynamic economical optimization of sustainable forest harvesting in Russia
with consideration of energy, other forest products and [email protected] , [email protected]
Forests are used for many different purposes. It is important to consider these simultaneously.
A new methodological approach to optimization of forest management with consideration of recreation and the forest and energy industries has been developed. It maximizes the total present value of continuous cover forest management and takes all relevant costs and revenues into account, including set up costs.
In several regions, in particular close to large cities, such as Paris and Moscow, the economic importance of recreation forestry is very high in relation to the economic results obtained from traditional “production oriented” forest management.
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ABSTRACT Page 2(4)
This does however not automatically imply that production of timber, pulpwood and energy assortments can not be combined with rational recreation forestry. On the contrary:
It is sometimes necessary to harvest and to produce some raw materials that can be utilized by the forest products industry and/or the energy industry, in order to avoid that the forest density increases to a level where most kinds of forest recreation becomes impossible, at least for large groups of recreation interested individuals. The optimization model includes one section where the utility of recreation, which may be transformed to the present value of net revenues from recreation, is added to the traditional objective function of the present value of the production of timber, pulpwood and energyassortments.
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ABSTRACT Page 3(4)
In several situations, individuals interested in recreation prefer forests with low density.
This means that forest management that is optimal when all objectives are considered, typically is characterized by larger thinning harvests than forest management that only focuses on the production of timber, pulpwood and energy assortments.
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ABSTRACT Page 4(4)
The results also show that large set up costs have the same type of effect on optimal forest management as an increasing importance of typical forms of recreation, close to large cities.
Both of these factors imply that the harvest volumes per occation increase and that the time interval between harvests increases.
Even rather small set up costs imply that the continuous cover forest management schedule gives a rather large variation in the optimal stock level over time.
The general analysis of the optimization problems analysed within this study is based on differential equations describing forest growth, in combination with two dimensional optimization of the decisions “harvest interval” and “stock level directly after harvest”. All of the other variables are explicit functions of these decisions.
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ABSTRACTPeter Lohmander and Liubov Zazykina:
(Peter Lohmander, Professor, Swed.Univ.Agr.Sci., Sweden and Liubov Zazykina, PhD Student, Moscow State Forest University, Russia)
Title: Dynamic economical optimization of sustainable forest harvesting in Russia with consideration of energy, other forest products and recreation.
[email protected] , [email protected] [email protected]
Forests are used for many different purposes. It is important to consider these simultaneously. A new methodological approach to optimization of forest management with consideration of recreation and the forest and energy industries has been developed. It maximizes the total present value of continuous cover forest management and takes all relevant costs and revenues into account, including set up costs. In several regions, in particular close to large cities, such as Paris and Moscow, the economic importance of recreation forestry is very high in relation to the economic results obtained from traditional “production oriented” forest management. This does however not automatically imply that production of timber, pulpwood and energy assortments can not be combined with rational recreation forestry. On the contrary: It is sometimes necessary to harvest and to produce some raw materials that can be utilized by the forest products industry and/or the energy industry, in order to avoid that the forest density increases to a level where most kinds of forest recreation becomes impossible, at least for large groups of recreation interested individuals.
The optimization model includes one section where the utility of recreation, which may be transformed to the present value of net revenues from recreation, is added to the traditional objective function of the present value of the production of timber, pulpwood and energy assortments. In several situations, individuals interested in recreation prefer forests with low density. This means that forest management that is optimal when all objectives are considered, typically is characterized by larger thinning harvests than forest management that only focuses on the production of timber, pulpwood and energy assortments.
The results also show that large set up costs have the same type of effect on optimal forest management as an increasing importance of typical forms of recreation, close to large cities. Both of these factors imply that the harvest volumes per occation increase and that the time interval between harvests increases. Even rather small set up costs imply that the continuous cover forest management schedule gives a rather large variation in the optimal stock level over time. The general analysis of the optimization problems analysed within this study is based on differential equations describing forest growth, in combination with two dimensional optimization of the decisions “harvest interval” and “stock level directly after harvest”. All of the other variables are explicit functions of these decisions.
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Thank you for listening!Questions?