Three different option value approaches are used to estimate the value of a typical New Zealand plantation stand, under the assumption that log prices follow a random walk. Crop values are compared with the Faustmann value, the benchmark for forest valuation in New Zealand. The increase in...

In this paper the integration of log prices across four regions in New Zealand was assessed. A time series of prices for six Radiata Pine (Pinus radiata D. Don) log grades in each of the regions were tested for co-integration using Johansen’s method and Engle-Granger pair wise tests. Prices...

There is a need for better understanding and estimating forests non-market values. This study aimed to investigate the environmental and social values of plantation forests in New Zealand focusing in Hawke’s Bay. Identified stakeholder groups considered Erosion control, Water quality and...

A dynamic recursive CGE model of the Berau District (East Kalimantan Province, Indonesia) was constructed, to analysis the impact of REDD policies. The model was used to simulate a policy to implement reduced-impact logging (RIL) by inducing a seven percent raise in logging cost. Results suggest...

The New Zealand Government has enacted an emissions trading scheme (ETS) under which owners of Kyoto-compliant forests will receive/surrender units for increases/decreases in the carbon stocks of their plantations. Each unit represents one tonne of carbon dioxide (CO2) and can be traded. In this...

Stochastic Dynamic Programming is used to determine the expected bare land value under the New Zealand ETS (Emissions Trading Scheme) with both log prices and carbon prices following a random walk. This value is substantially higher than the Faustmann NPV. This is in contrast to the situation...

The Government of Indonesia is committed to cut its emissions by 26% by 2020. In forestry sector, this is done through reducing emissions from deforestation and forest degradation (REDD) program. One of several pilot activities of the REDD Program is the Berau Forest Carbon Program (BFCP) which...