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Decision making in forest management with consideration of stochastic prices
University of Guilan, Someh Sara, Iran.
SLU, Umeå.
International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria .
2010 (English)In: Iranian Journal of Operations Research, Vol. 2, no 1, p. 32-40Article in journal (Refereed) Published
Abstract [en]

The optimal harvesting policy is calculated as a function of the entering stock, the price state, the harvesting cost, and the rate of interest in the capital market. In order to determine the optimal harvest schedule, the growth function and stumpage price process are estimated for the Swedish mixed species forests. The stumpage price is assumed to follow a stochastic Markov process. A stochastic dynamic programming technique and traditional deterministic methods are used to obtain the optimal decisions. The expected present value of all future profits is maximized. The results of adaptive optimization are compared with results obtained by the traditional deterministic approach. The results show a significant increase in the expected economic values via optimal adaptive decisions.

Place, publisher, year, edition, pages
2010. Vol. 2, no 1, p. 32-40
National Category
Economics
Identifiers
URN: urn:nbn:se:miun:diva-37480OAI: oai:DiVA.org:miun-37480DiVA, id: diva2:1358163
Available from: 2019-10-07 Created: 2019-10-07 Last updated: 2019-10-07Bibliographically approved

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Mohammadi Limaei, Soleiman

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CiteExportLink to record
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