Covering very long-term planning horizons, investment decision-making in forestry is confronted with severe uncertainty. Assessment examples from Chilean forestry have been used in this study to test different models for the selection of tree species mixtures under uncertainty. Therefore different assessment models from probabilistic theory and their use in forestry economics have been analysed. Later on, the financial attractiveness of the conversion of a secondary forest to a Douglas fir plantation has been evaluated in consideration of uncertainties and adequate compensation payments for conservation of the secondary forest have been calculated. Finally, different assessment models for the selection of optimum tree species mixtures for afforestation have been tested. Robust optimisation models seem to be most suitable due to difficulties with adequate risk estimation.
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Covering very long-term planning horizons, investment decision-making in forestry is confronted with severe uncertainty. Assessment examples from Chilean forestry have been used in this study to test different models for the selection of tree species mixtures under uncertainty. Therefore different assessment models from probabilistic theory and their use in forestry economics have been analysed. Later on, the financial attractiveness of the conversion of a secondary forest to a Douglas fir plant...
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