Estimation of cost and revenue functions for reforestation system in Drahanska highlands

Abstract

In this paper we are interesting in mathematical description of reforestation system in Drahanska highlands, which can be found in the Czech Republic. We estimate parameters of revenue and cost functions predefined according to formulation of underlying optimal control problem. Data related to wood processing economy are available in limited form only, because companies do not present their costs and profits in regular way. To cover overall situation in forestry management we employ simulation techniques, which provide data suitable for regression. Finally, shape and coefficients of cost and revenue functions are discussed for particular species.

Optimal Conversion Management for Spruce-dominated Forests: the Case of Drahanska Highlands

“…In forest management decision support, the prevailing technique is linear programming, while quadratic programming is used rarely (for FCC related problems see (Arias-Rodil, Dieguez-Aranda and Vazquez-Mendez, 2017;Pyy et al, 2017)). The rationale for using the quadratic functions in the objective of the FCC model stems from the good performance of the empirical regression model combined with the correspondence of the resulting functions with expert suggestions concerning revenues and costs in the particular FCC problem (Janova and Hampel, 2016;Hampel and Viskotova, 2020). The revenue and cost functions are considered in the following forms:…”

“…Hence, there is not enough data for the Drahanska highlands to directly estimate the annual revenue and cost functions (3) and ( 5). Therefore, we used the simulations suggested and described in (Janova and Hampel, 2016;Hampel and Viskotova, 2020) to obtain the data for the regression analysis.…”

Integrating climate change criteria in reforestation projects using a hybrid decision-support system

“…They are general enough criteria that can be applied to different aims, such as environmental protection or restoration. However, in the specific case of timber production, different criteria should be taken into account, such as incomes or revenues, log properties such as strengthening or flexure or method of forestation, among others (Denzler et al 2015, Hampel et al 2015) regarding economic criteria, they are general enough and can be applied to any study case. Nevertheless, other criteria can be added depending the specific features of the forestation project.…”