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Browsing by Subject "dynamic optimization"

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  • Parkatti, Vesa-Pekka (2017)
    This study optimizes the management regime of boreal Norway spruce (Picea abies (L.) Karst.) and Scots pine (Pinus sylvestric L.) stands. The aim is to compare the economic profitability of continuous cover management and clearcut management and to study the hypothesis that continuous cover forestry is more favorable in the case of Norway spruce, compared to Scots pine. Additionally, the study analyses the outcomes of two different growth models for these tree species and compares the results with the requirements of the Finnish Forest Act of 2014. Earlier studies comparing the suitability of Norway spruce and Scots pine to continuous cover forestry have applied unclear model specifications and unnecessary limitations in the optimization methods. In this study, the optimization is carried out using a theoretically sound economic optimization model that determines the choice of the management regime as an outcome of the optimization. The model uses empirically estimated ecological growth models and includes both fixed and variable harvesting costs. Two different empirically estimated ecological growth models are used and compared. The optimization model is solved as a bi-level problem where harvest timing is the upper-level problem and harvesting intensity the lower-level problem. The optimization is solved using gradient-based methods for the lower-level problems and genetic and hill-climbing algorithms for the upper-level problems. This is the first study using this method to solve optimal continuous cover solutions for Scots pine. The results show that the main differences in optimal solutions between the two species are independent of the ecological two growth models used. According to both ecological models, continuous cover forestry is less favorable for Scots pine compared to Norway spruce, in both low and average fertility sites. However, the magnitude of this favorability and the characteristics of the optimal solutions strongly depend on the ecological model. Optimal continuous cover solutions for Scots pine are also found to have very low stand densities. Almost all economically optimal solutions are illegal because of their low number of trees or basal area per hectare.
  • Sarvola, Inka-Mari (2022)
    Reindeer (Rangifer tarandus L.) is an integral part of ecosystems across the northern boreal regions, and reindeer husbandry is an important socio-cultural factor, especially for indigenous people. Currently, reindeer husbandry in Fennoscandia is confronted with deterioration of pasture areas, and the decreasing of reindeer number has often been offered as a solution. However, in most reindeer herding districts, forestry has also strongly decreased the sustainable production capacity of winter pastures and therefore has had a significant role in pasture deterioration in addition to high reindeer numbers. The interaction between forestry and reindeer husbandry has often been studied qualitatively, ecologically, or with simple bio-economic models from the perspective of forestry. In this thesis, I use a detailed interdisciplinary ecological-economical model to study how the rotation forestry affects the economics of reindeer husbandry. The research questions are 1) how does the length of forest rotation period and 2) the management practices such as soil scarification and leaving of harvesting residues affect the economically optimal reindeer husbandry. I expand a novel ecological-economical reindeer husbandry optimization model to include the effects of forestry on the ground and arboreal lichen with an assumption of normal forest structure. The effects of forestry on the ground and arboreal lichen are based on previous literature. Modern dynamic optimization algorithms are used to solve the model for the optimal number of reindeer, annual net revenues, lichen biomass on pastures, and the level of supplementary feeding under different forest rotation lengths and management scenarios with zero and positive interest rates. The results show that the length of forest rotation period affects the economically optimal solution. When pasture rotation is used, shortening the forest rotation length decreases the optimal number of reindeer, annual income, and the lichen biomass in pastures, but increases the amount of supplementary feed given. When pasture rotation is not used, shortening the forest rotation length decreases the number of reindeer, annual net revenues, and supplementary feeding, but increases the lichen biomass. Soil scarification and harvesting residues lower the annual net revenues of reindeer husbandry by 1-15% depending on the forest rotation length and pasture rotation. The longer is the forest rotation length, the less the annual net revenues are affected by the forest management practices. Higher interest levels lead to higher reindeer numbers and a higher level of supplementary feeding, but also to lower lichen biomass and annual net revenues from reindeer husbandry. The results of this thesis support the earlier findings of negative effects of rotation forestry and short rotation lengths on reindeer husbandry, and estimations that reindeer husbandry is more resilient if pasture rotation is used. As the economical sensibility of rotation forestry in Lapland has currently been questioned, even-aged forestry could offer a solution with the best management scenarios for both parties. The results of this thesis support infinitely long forest rotation length without soil scarification. This thesis also highlights the need for interdisciplinary co-design of ecological studies to ensure that they are suitable for creating complex interdisciplinary optimization models.
  • Rämö, Janne (2013)
    This study analyzes the optimal harvesting of single species uneven-aged Norway spruce (Picea abies (L.) Karst.), Scots pine (Pinus sylvestris L.), and birch (Betula pendula Roth. and B. pubescens Ehrh.) stands, in addition to mixed species stands with all three species. The analysis is based on an economic description of uneven-aged forestry using a size-structured transition matrix model and a single-tree model. The optimization problem is solved in its general dynamic form using gradient-based interior point methods. Similar analysis on uneven-aged birch, Scots pine and mixed species stands in Nordic conditions has not been published. Increasing the harvesting interval decreases the average annual volume yield. Assuming natural regeneration, this suggests that volume yield is maximized by uneven-aged rather than even-aged management. The present value of stumpage revenues is maximized after saw timber and pulpwood prices, interest rate, and a 15-year harvesting interval are included. The economically optimal solution with a 3% interest rate produces an annual yield of 1.9, 5.5 and 2.9 cubic meters (m3) for Scots pine, Norway spruce, and birch respectively in single species stands at site with average productivity. At less productive sites, the mixed species stand is heavily dominated by Norway spruce regardless of interest rate. At more productive sites on the other hand, increasing interest rate increases species diversity. Both the optimal volume yield and net present value maximization solutions converge to unique species- and site-type-specific steady-states with constant harvests. The transition matrix model typically used in optimization studies is computationally less demanding than the single-tree model, but the differences in optimal solutions are more remarkable than earlier studies show. Additionally, it appears that the investmentefficient optimization model may result in steady-state solutions that significantly differ from the correct solutions.
  • Räsänen, Jenni (2013)
    The purpose of this study was to define economically optimal stand structures and harvesting cycles for uneven-aged Scots pine (Pinus sylvestris L.) in Finland. According to a recent proposal by Ministry of Agriculture and Forestry, uneven-aged management will be included in the new Forest Act as an alternative for future forest management in Finland. Uneven-aged management is also planned to be included in the Forest management practice recommendations by the year 2014. However, only little knowledge exists on optimal uneven-aged management in Finland, particularly on uneven-aged Scots pine. This thesis aimed at filling the gap in knowledge regarding economically optimal management of uneven-aged Scots pine. So far, economic studies on uneven-aged Scots pine have been conducted only in a static optimization framework, where optimal stand structure is constrained with a classic “reversed-J” diameter distribution, and transition cuttings are limited to one single harvest. In this work, stand structures and harvesting cycles were optimized for maximum volume yield and maximum stumpage revenues by applying both static and dynamic optimization. Until now, no dynamic optimization has been conducted on uneven-aged Scots pine. Static optimization was applied for different growth sites from mesic sites in Southern Finland (MT1300) to sub-xeric sites in Central Finland (VT1100). Mesic sites in Southern Finland were also optimized in a dynamic framework. A density-dependent individual tree model with latest ecological growth models was applied in optimization. The large-scale nonlinear problems were solved by means of numerical computing with discrete-time formulations. Present value of stumpage revenues was maximized applying 1% and 3% discount rates. Economically optimal harvesting cycle became 40 years in Southern Finland (site MT1300), and even longer at more northern and less fertile site types. Results imply that it is not economically optimal to manage Scots pine with a traditional selection method with short harvesting cycles, but rather with a heavy harvesting regime including low after cut basal areas. When maximizing present value of stumpage revenues, optimal after cut basal areas in Southern Finland were as low as 5 m2 (1% discount rate) and 3.2 m2 (3% discount rate) per hectare. A proposal of Ministry of Agriculture and Forestry suggests minimum after cut basal areas of 10–11 m2 per hectare for Southern Finland, which clearly exceed the optima of this study. Contrary to the existing results for uneven-aged Scots pine, economically optimal stand structure did not follow the classic reversed-J diameter distribution.
  • Närhi, Lotta (2022)
    Boreal forests fulfil a myriad of ecological, social and economic functions in modern society, which is why it is crucial to manage them in the best way possible. The prevailing forest management strategy in Finland has been rotation forestry, but a Finnish citizens’ initiative and the new EU forest strategy for 2030 have for ecological reasons been calling for a reduction in clearcuts and a switch to continuous cover forestry. While a growing number of economic-ecological optimization studies illustrate the economic aspects of optimal management regime choice in Nordic conditions, the understanding remains incomplete. To contribute to this line of research, this thesis studies the economically optimal management regime and species composition of mixed-species boreal forests with a previously unexamined species combination: Scots pine (Pinus sylvestris L.) and silver birch (Betula pendula Roth). The analysis is based on a theoretically sound and generalized stand-level economic-ecological model that maximizes the net present value of forestry income. In this setup, the optimal management regime is determined endogenously and flexibly, by dynamically optimizing both the rotation period and the timing and intensity of thinnings in a tri-level structure. All model details are empirically estimated. Forest stand development is described by size-structured empirical growth models by Pukkala et al. (2011, 2013) and by Pukkala et al. (2021), of which the latter has not been used in this line of analysis before. The results of this thesis show, for the first time empirically, that it can be economically optimal to conduct near-clearcuts without investing in artificial regeneration afterwards. Near-clearcuts create favourable conditions for utilizing the unharvested young trees and natural regeneration of pioneer species in generating a new tree cohort. This management strategy is found to be suitable for birch-dominated pine–birch stands with a 1% interest rate, as well as pure birch stands. With a 3% interest rate, continuous cover forestry becomes optimal for mixed stands. A further outcome of this thesis is that continuous cover management of pure pine stands is found to be more viable than in previous optimization studies. Further, it is shown that it is economically beneficial to let birch regenerate in a pine stand and even dominate it, due to improvements in overall ingrowth. The characteristics of the optimal solutions are, however, dependent on the ecological growth model used. In light of the cases studied in this thesis, neither rotation forestry nor continuous cover forestry is categorically superior in terms of timber income. There are demonstrably many cases where taking advantage of the environmental benefits of continuous cover forestry and higher tree species diversity is optimal also with respect solely to maximizing timber revenues.