Global timber investments, 2005 to 2017
North Carolina State University1, University of Concepción2, University of the Republic3, National University of Misiones4, University of Helsinki5, Scion6, Technical University of Madrid7, University of Los Andes8, Universidad Nacional de Asunción9, Research Triangle Park10, Federal University of Paraná11
TL;DR: In this article, the authors estimated timber investment returns for 22 countries and 54 management regimes in 2017, for a range of global timber plantation species and countries at the stand level, using capital budgeting criteria, without land costs, at a real discount rate of 8%.
About: This article is published in Forest Policy and Economics.The article was published on 2020-03-01 and is currently open access. It has received 37 citations till now.
Citations
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TL;DR: In this paper, the authors examined the economic performance of plantations for three species, Acacia mangium, Eucalyptus (Eucalypticus urophylla S.T. Blake × Eucaliaptus camaldulensis Dehn), and Manglietia conifera Dandy, in Bac Kan province.
Abstract: Forest plantations have expanded rapidly in response to financial support from the state and local governments and have had significant positive impacts on rural livelihoods and development in Vietnam, since the late 1980s. This study used net present value (NPV) and internal rate of return (IRR) to examine the economic performance of plantations for three species, Acacia mangium Willd, Eucalyptus (Eucalyptus urophylla S.T. Blake × Eucalyptus camaldulensis Dehn), and Manglietia conifera Dandy, in Bac Kan province. On the basis of an annual discount rate of 6%, the results showed that rural households earned positive financial returns from forest plantations with seven-year rotations. Eucalyptus generated the highest NPV but A. mangium generated the greatest IRR. The plantations were facilitated by financial support from the state, land tenure reforms, and wood exports. The results provide valuable business information and policy implications for both local farmers and policy makers. Since the farmers consider more of the short term and economic return of the plantations, the results provide valuable information for policy makers to apply subsidies and other support to promote plantations with significant ecological and environmental benefits for sustainable development of rural economies.
29 citations
TL;DR: In this paper, the authors evaluated the performance of global roundwood markets by evaluating the order of market integration in the United States (the South and Pacific Northwest), New Zealand, Brazil, South Africa, Sweden, Chile, Canada, Finland and Austria.
24 citations
TL;DR: In this paper , the authors investigate volatility spillovers between natural alternative investments, i.e. timber and water, and a battery of traditional instruments comprising equities, bonds, crude oil, gold, real estate, shipping and currency, for the period 1/1/2010-9/30/2021.
20 citations
TL;DR: In this paper, the authors estimated relationships between per capita income and planted forest area for the United Nations Intergovernmental Panel on Climate Change-inspired Shared Socioeconomic Pathways (SSPs).
Abstract: There is rising global interest in growing more trees in order to meet growing population, climate change, and wood energy needs. Using recently published data on planted forests by country, we estimated relationships between per capita income and planted forest area that are useful for understanding prospective planted forest area futures through 2100 under various United Nations Intergovernmental Panel on Climate Change-inspired Shared Socio-economic Pathways (SSPs). Under all SSPs, projections indicate increasing global planted forest area trends for the next three to four decades and declining trends thereafter, commensurate with the quadratic functions employed. Our projections indicate somewhat less total future planted forest area than prior linear forecasts. Compared to 293 million ha (Mha) of planted forests globally in 2015, SSP5 (a vision of a wealthier world) projects the largest increase (to 334 Mha, a 14% gain) by 2055, followed by SSP2 (a continuation of historical socio-economic trends, to 327 Mha, or an 11% gain), and SSP3 (a vision of a poorer world, to 319 Mha, a 9% gain). The projected trends for major world regions differ from global trends, consistent with differing socio-economic development trajectories in those regions. Our projections based on empirical FAO data for the past 25 years, as well as those by other researchers, suggest that achieving the much more ambitious global planted forest targets proposed recently will require exceptional forest land and investment supply shifts.
17 citations
TL;DR: In this article, a review synthesizes natural and social science research on forest restoration (FR), with a focus on sustainable forest management, and a series of international initiatives have set ambitious goals for restoring global forests.
Abstract: A series of international initiatives have set ambitious goals for restoring global forests. This review synthesizes natural and social science research on forest restoration (FR), with a focus on ...
14 citations
References
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TL;DR: In this paper, the authors focus on an analysis of planted forests data from the 2015 Forests Resources Assessment of the U.N. Food and Agriculture Organization (FRA 2015) and suggest that climate impacts, especially from extreme climatic events will affect planted forests in the future and that forest health impacts can also be expected to increase.
518 citations
"Global timber investments, 2005 to ..." refers background in this paper
...Timber investment analyses also help explain the increase in forest plantation area and future projections for more planted forests (Carle and Holmgren, 2008; Payn et al., 2015; Nepal et al., 2019), the increase in forest industry investments, and the role of forest plantation timber to substitute for timber coming from natural forests (e....
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04 Mar 2003
TL;DR: The authors provides a comprehensive analysis of the arguments for and against fast-wood platations, separating fact from fiction, science from speculation, truth from misinformation, and separates fact from speculation.
Abstract: This book provides a comprehensive analysis of the arguments for and against fast-wood platations. It separates fact from fiction, science from speculation, truth from misinformation. Environmentalists have frequently exaggerated the malign impact of fast-wood plantations. At the same time plantation companies have underestimated the damage that fast-wood forestry has done, both to the environment and local communities. This book explores in detail the impact of the industry on biodiversity, soil and water resources. It analyses the claims made by plantation companies that fast-wood forestry brings valuable social benefits jobs, infrastructure and wealth--to rural communities. And it assesses the merits--or otherwise--of the subsidies and incentives used by governments and international agencies to encourage the industry. It conludes with a series of recommendations that suggest how the industry could improve its environmental and social performance.
302 citations
"Global timber investments, 2005 to ..." refers background in this paper
...While planted forests have detractors as well as proponents—see balanced discussions by Cossalter and Pye-Smith (2003), Pirard et al. (2016, 2017)—their area and share of industrial wood they provide continues to increase....
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Book•
01 Sep 1995
TL;DR: In this article, the authors review the free market and the forest as capital in the context of microeconomic analysis of forest land use and even-aged rotations in the United States wood processing industry.
Abstract: Microeconomics review forestry and the free market the forest as capital - appendices inflation and forest investment analysis capital budgeting in forestry economics of forest land use and even-aged rotations - appendix optimal timber stocking forest taxation risk and the discount rate forest valuation and appraisal - appendix timber demand and supply the United States wood processing industry valuing non-market forest outputs multiple use forestry forestry and regional economic analysis forests in a world economy.
294 citations
"Global timber investments, 2005 to ..." refers background or methods in this paper
...Experts and popular articles have examined and discussed timberland returns for at least a century since the development of the Faustmann (1849) Formula for calculating forest land expectation values and its subsequent widespread applications (e.g., Duerr, 1993; Gregory, 1987; Klemperer, 2003; Wagner, 2012), and this increased considerably as a new forest plantation sector has developed....
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...We also calculated the IRRs for each stand investment, which are perhaps more useful for handy comparisons as demonstrated by its most frequent use in the preceding forest finance literature—despite some theoretical shortcomings (Klemperer, 2003; Wagner, 2012)....
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01 Jan 1987
211 citations
"Global timber investments, 2005 to ..." refers background in this paper
...Published timber price and management cost series are only available for a few countries, such as the Timber Mart-South (2018) and a Forest Landowner (Maggard and Barlow, 2017) management cost series in the USA....
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TL;DR: Using Foret Plantations TO SPARE Natural Forests as mentioned in this paper is an example of such an approach, and it has been successfully applied in the field of sustainable development in the developing world.
Abstract: (1997). Using Foret Plantations TO SPARE Natural Forests. Environment: Science and Policy for Sustainable Development: Vol. 39, No. 10, pp. 14-30.
181 citations