A mathematical model for infrastructure investments in the forest sector of coastal Norway

Flatberg, Truls; Nørstebø, Vibeke Stærkebye; Bjørkelo, Knut; Astrup, Rasmus; Søvde, Nils Egil

doi:10.1016/j.forpol.2018.04.008

Cited by 7 publications

(4 citation statements)

References 9 publications

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“…When incentives and penalties were in place, a defined environment increased the supply of goods for forestry infrastructure. (6) The impact of information feedback on supply depended on environmental certainty. When the environment was determined, information feedback increased donations.…”

Section: Discussionmentioning

confidence: 99%

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Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods

Zhang

2020

Sustainability

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The existing research on forestry infrastructure has focused on suggestions from other areas of forestry research: that forestry infrastructure should be completed and improved. However, research on forestry infrastructure is relatively rare. In the real world, there are various problems with creating forestry infrastructure, such as complex approval procedures for facility construction, irrational facility layout, insufficient funding for facility construction, and conflicts between the nature of land used for facility construction and the nature of forest land. This paper uses game theory to analyze the behavior of forest infrastructure goods suppliers. Relevant parameters related to forest area infrastructure were designed, including communication, environmental certainty, information feedback, and reward and punishment mechanisms, and experimental economics methods were used to simulate accurate behavior regarding the supply of goods. Then, the key factors that affect the provision of quasi-public goods for forestry infrastructure were studied. At the end of the paper, some targeted suggestions that distinguish rural infrastructure from general infrastructure are given.

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Section: Discussionmentioning

confidence: 99%

“…Up to now, the research on forestry infrastructure supplies has mainly focused on analyses of, e.g., insufficient supplies, low quality, and a shortage of funds [1][2][3][4][5][6][7][8]. Some scholars have also studied forest roads.…”

Section: Introductionmentioning

confidence: 99%

Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods

Zhang

2020

Sustainability

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“…-a small number of connections (on average, for graphs of an economic or social system, especially clusters, the average number of transitions that need to be made between the vertices is not large); -high density of cooperative ties and the presence of communities within the system (with high probability, if the first vertex of the social graph is connected to the second and the second to the third, then the first vertex will also be connected to the third); -community background. This approach to modeling an economic system allows taking advantage of the extensive methodological apparatus developed in the framework of the theory of social graphs [3,4,5].…”

Section: The Approach To Modeling a Cluster As An Economic Systemmentioning

confidence: 99%

Structural modeling of a forest cluster using discrete mathematics

et al. 2020

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Economic modeling allows studying the development trends of clusters and planning the introduction of control actions in this socio-economic system to achieve the necessary stabilization and development trends. The cluster can be described as a set of information about its elements and the relationships between them and can be represented as a graph, where the vertices are the agents, and the directed edges are connections between them. Cluster structural formations can be considered as social graphs containing information about heterogeneous factors and the relations between them. Complex structural modeling of the forest cluster allows creating a formal representation of the tasks of identifying the objects (socio-economic systems), analyzing their complexity, coherence, stability, and development scenarios. To do this, we applied the apparatus of discrete mathematics. Signed graphs make it possible to formally make forecasts of the development or trajectory of the simulated system in the phase space of its variables (factors) based on information about its structure and development programs by means of approximating them with pieces of trajectories of impulse processes in signed digraphs. Modeling with the help of the graph theory makes it possible to remove uncertainty associated with predicting the development of a complex system and to propose the option of controlling a stochastic process.

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“…Forestry OR applications have tended to focus on either strategic long-term forest management issues (e.g., silvicultural strategies and the sustainability of timber and non-timber values), strategic decisions about processing location and scale, or tactical short-term forest products industry supply chain planning. Recent examples of the application of OR to support wood processing investment decisions have typically used geographic information systems (GIS) to accommodate spatially explicit parameters and decision variables [18,[24][25][26][27][28][29][30][31][32][33][34][35]. However, spatially-explicit datasets are not available in many forestry environments around the world, including for hardwood forestry in subtropical eastern Australia.…”

Section: Introductionmentioning

confidence: 99%

Impact of Facility Location on the Financial Performance of Integrated and Distributed LVL Production in Subtropical Eastern Australia

Venn

Dorries²,

McGavin

et al. 2022

Forests

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In subtropical eastern Australia, the declining availability of traditional, large hardwood native forest logs has motivated hardwood sawmills to explore potentially utilising small logs in the manufacture of veneer-based engineered wood products (EWPs), such as laminated veneer lumber (LVL). An aspatial mathematical model that maximises net present value (NPV) over a 30-year project life has been applied to estimate the financial performance of LVL manufacture in this region. Of particular interest was how facility location affected financial performance, and whether distributed production of veneer (close to the log resource) and LVL (distant from the log resource) may be more profitable than integrated production under some circumstances. While integrated production of veneer and LVL near the resource maximised NPV, distributed production was found to be more profitable than integrated production in situations where the LVL manufacturing facility had to be located relatively far from the resource. Nevertheless, the level of value-adding and processing scale had a greater impact on financial performance than facility location. The analysis also highlighted that log procurement strategy substantially affected financial performance. Encouragingly for forest growers and wood processors, utilising large volumes of small diameter logs, was important for maximisation of NPV of larger-scale LVL facilities.

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A mathematical model for infrastructure investments in the forest sector of coastal Norway

Cited by 7 publications

References 9 publications

Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods

Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods

Structural modeling of a forest cluster using discrete mathematics

Impact of Facility Location on the Financial Performance of Integrated and Distributed LVL Production in Subtropical Eastern Australia

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