Net present value and internal rate of return as indicators for assessment of cost-efficiency of poplar plantations: A Serbian case study

International Forestry Review

Volumn 14, Issue 2, 2012, Pages 145-156

  Keca L ^a   Keca N ^a   Pantic D ^a  

^a UNIVERSITY OF BELGRADE   (Serbia)

Author keywords

Financial rotation; Hybrid poplar plantations; Internal rate of return (IRR); Net present value (NPV); Sensitive analysis

Indexed keywords

COST-BENEFIT ANALYSIS; DISCOUNT RATE; FINANCE; PLANTATION FORESTRY; PROFITABILITY;

SERBIA;

NUCLEOPOLYHEDROVIRUS; POPULUS; POPULUS X CANADENSIS;

EID: 84863105100     PISSN: 14655489     EISSN: None     Source Type: Journal    
DOI: 10.1505/146554812800923345     Document Type: Review

References (59)

1. 2003. Rules for content and preparation of planning documentation in forestry [Pravilnik o sadržini i načinu izrade planskih dokumenata u šumarstvu]. Official Gazette - Republic of Serbia 122, Belgrade 21 p.
2. 2005. Serbia and Montenegro: Selected Issues and Statistical Appendix. IMF, Country Report No. 05/232, Washington D.C., USA, 127 p.
3. ANDERSON, J.A. and LUCKERT, M.K. 2006. Can hybrid poplar save industrial forestry in Canada's boreal forest?: A financial analysis and policy considerations. Western Forest Economist Meeting, Oregon, 36 p.
4. ANDRǍEV, S., RONČEVIĆ, S., VUČKOVIĆ, M., BOBI-NAC, M., DANILOVIĆ, M. and JANJATOVIĆ, G. 2009. Elements of structure and productivity of clone I-214 (Populus×euramericana (Dode) Guinier) plantations on the River Sava alluvium. Bulletin of the Faculty of Forestry 101: 7-24 (in Serbian with English summary).
5. AUSTIN, J.E. 1981. Agroindustrial project analysis. Johns Hopkins University Press, Baltimore, MD, USA. 221 p.
6. BANKOVIĆ, S., MEDAREVIĆ, M., PANTIĆ, D., PETROVIĆ, N., LJUKIĆ, B.and OBRADOVIĆ, S. 2009. The growing stock of the Republic of Serbia - State and problems. Bulletin of the Faculty of Forestry 100: 7-30 (in Serbian with English summary).
7. BIERMAN, H.and SMIDT, S. 1984. The capital budgeting decision: economic analysis of investment projects (Sixth Edition). Macmillan Publishing Company, New York. 304 p.
8. BLATNER, K.A., JOHANSON, J.D. and BAUMGARTNER, D.M. 2000. Hybrid poplars in the Pacific North West: Culture, Commerce and Capability. Washington State University, Pullman, WA, USA. 109 p.
9. BORENSZTEIN, E., DE GREGORIO, J. W. and LEE, J. 1998. How does foreign direct investment affect economi c growth? Journal of International Economics 45: 115-135. (Pubitemid 28437479)
10. BOYSEN, B.and STROBL, S. 1991. A growers guide to hybrid poplar. Ontario Ministry of Natural Resources, Toronto, Ontario, Canada. 148 p.
11. BRAZEE, R. and MENDELSOHN, R. 1988. Timber harvesting with fluctuation prices. Forest Science 34: 359-372.
12. BUONGIORNO, J., BARK, S. and BRANNMAN, I. 1985. Lance volume vffered and wood prices: A causality test for national forests. Forest Science 31: 405-414. (Pubitemid 16289832)
13. CAGELLI, L. and LEFEVRE, F. 1995. The Conservation of Populus nigra L. and gene flow with cultivated poplars in Europe. Forest Genetics 2: 135-144.
14. CLARK, J. 2001. The global wood market, prices and plantation investment: an examination drawing on the Australian experience. Environmental Conservation 28: 53-64.
15. DALE, W. J. 1963. Capital theory and investment behaviour. The American Economic Review 53 (2) In Papers and Proceedings of the Seventy-Fifth Annual Meeting of the American Economic Association, American Economic Association, USA. 247-259.
16. DE BELL, D.S. and HARRINGTON, C.A. 1997. Productivity of Populus in monoclonal and polyclonal blocks at three spacings. Canadian Journal of Forestry Research 27: 305-313.
17. DEMCHIK, M., CURRENT, D., JOHNSON, W., RIEMENSCHNEIDER, D., VONGROVEN, S. and WENE, E. 2002. Hybrid poplars as an alternative crop. University Minnesota, Extension National Resources Special Report NRS-2. 7 p.
18. DINER, A. and KOCER, S. 1989. The preparation of feasibility report for hybrid poplar (I-214 Clone) investment. Journal of Poplar and Fast Growing Forest Trees Research Institute 2: 28-36.
19. EASTON, P., TAYLOR, G., SHROFF, P. and SOUGIANNIS, T. 2002. Using forecasts of earnings to simultaneously estimate growth and the rate of return on equity investment. Journal of Accounting Research 40: 657-676. (Pubitemid 36256426)
20. ECONOMOS, A.M. 1968. A financial simulation for risk analysis of a proposed subsidiary. Management Science 15: 675-682.
21. ELEVITCH, C.R. and WILKINSON, K.M. 2000. Economics of farm forestry: financial evaluation for landowners. agroforestry guides for Pacific Islands #7. Permanent Agriculture Resources, Holualoa, Hawaii, USA. 31 p.
22. ENGINGDENIZ, S. 2003. Ditermination of economic and financial rotation lengths of hybrid poplar plantations: the case of Turkey. Pakistan Journal of Biological Sciences 6: 41-47.
23. ERIKSSON, H.M., HALL, J.P. and HELYNEN, S. 2002. Bioenergy from sustainable forestry: Guiding principles and practice. in: RICHARDSON, J., BJÖRHEDEN, R., HAKKILA, P., LOWE, A. T. and SMITH, C.T. (eds.). Kluwer Academic Publishers, The Netherlands. 1-17 pp.
24. GALIĆ, Z., IVANǏEVIĆ, P., PEKEČ, S., KEBERT, M. and STOJNIĆ, S. 2009. Characteristics of soil types on small river islands in the central Danube basin. Bulletin of the Faculty of Forestry 100: 55-70 (in Serbian with English summary).
25. GITTINGER, J.P. 1972. Economic analysis of agricultural projects. The Economic Institute, International Bank for Reconstruction of Development, The Johns Hopkins University Press, Baltimore - London.
26. GREGERSEN, H. and CONTRERAS, A. 1979. Economic analysis of forestry projects. FAO Forestry Paper, 17, FAO, Rome. 208 p.
27. HENRI, C.J. and JOHNSON, J.D. 2004. Riparian forest buffer income opportunities, a hybrid Poplar case study. Department of Natural Resources, Washington State University, Arlington, WA, USA. 18 p.
28. HERPKA, I. 1960. Hybridization and selection of blach poplars. [Hibridizacija i selekcija topola]. Works-Research papers, Poplar Research Institute, Novi Sad, 1: 43-57 (in Serbian with English summary).
29. HERPKA, I. 1986. A survey on development and possibilities of growing: natural forest of poplars and willows. In: HERPKA, I., MARINKOVIĆ, P., KRSTINIĆ, A., BOŽIĆ, J., VRATARIĆ, P. and MARKOVIĆ, J. (Eds.) Poplars and willows. Poplar Res. Inst., Novi Sad, 21-36 pp. (in Serbian with English summary).
30. HERTZ, D.B. 1964. Risk analysis in capital investment. Harvard Business Review 42: 95-106.
31. HIRSCHLEIFER, J. 1958. On the theory of optimal investment decision. Journal of Political Economy 66: 329-352.
32. HOLOPAINEN, M., MÄKINEN, A., RASINMÄKI, J., HYYTIÄINEN, K., BAYAZIDI, S. and PIETILÄ, I. 2010. Comparison of various sources of uncertainty in stand-level net present value estinates. Forest Policy and Economics 12: 377-386.
33. ISEBRANDS, J.G. 2007. Best management practices poplar manual for agroforestry application in Minnesota. USDA, Washington, USA. 61 p.
34. JAIN, S.K. and SINGH, P. 2000. Economic analysis of industrial agroforestry: poplar (Populus deltoides) in Uttar Pradesh (India). Agroforestry Systems 49: 255-273. (Pubitemid 30613459)
35. KEČA, LJ.and PAJIĆ, S. 2010. Financial aspects of restoration in poplar plantations with technology of full ground and soil preparation. In ZLATIC M. (ed.) Global Change, challenges for Soil Management, Catena Verlag GMBH, Advances in Geoecology 41: 321-334.
36. KEČA, LJ., 2010. Assessment of cost-efficiency for wood production in poplar plantations in Ravan Srem, based on internal rate of return. Bulletin of the Faculty of Forestry 102: 25-40 (in Serbian with English summary).
37. KEČA, N. 2003. Possibility of parasite (Marssonina brunnea (Ell.& Ev.) P. Magnus and Melampsora spp.) control on poplar foliage with some fungicides. Bulletin of the Faculty of Forestry 88: 103-120 (in Serbian with English summary).
38. KEČA, N. 2004. Mycoflora diversity in the stands and plantations od poplars in the section Aigeiros. Bulletin of the Faculty of Forestry 90: 109-118 (in Serbian with English summary).
39. KEČA, N. 2008. Diseases in poplar plantations. Bulletin of the Faculty of Forestry 97: 7-31 (in Serbian with English summary).
40. LOTHNER, D.C., ROSE, D.J., ZAVITKOVSKI, J. and FERGUSON, K. 1981. A financial analysis of poplar intensive cultures in the Lake States. In: Energy from Biomass and Waste V: Symposium papers, Institute of Gas Technology, Lake Buena Vista, Florida, USA. 145-163. (Pubitemid 12484810)
41. NEUMANN, K. and ZIMMERMANN, J. 2000. Procedures for resource levelling and net present value problems in project scheduling with general temporal and resource constraints. European Journal of Operational Research 127: 425-444.
42. OBRATOV-PETKOVIĆ, D., BJEDOV, I., SKOČAJIĆ, D., UNISIJEVIĆ-BOJOVIĆ, D., UKIĆ, M. and GRBIĆ, M. 2011. Asteretum lanceolati - A new xenospontaneous community on wet and riparian habitats. Bulletin of the Faculty of Forestry 103: 73-92 (in Serbian with English summary).
43. PEJANOVIĆ, R. 2007. Some methodological phases and procedures in economy (and agricultural economy). Letopis naučnih radova Poljoprivrednog fakulteta 31: 174-186.
44. PUDAR, Z. 1986. Economic aspect of yields obtained in poplar plantations Populus euramericana (Dode) Guinier, cl. I-214 with two different spacing. Works of Poplar Research Institute -Novi Sad 17: 1-121 (in Serbian with English summary).
45. RAE, A.M., ROBINSON, K.M., STREET, N.R. and TAYLOR, G. 2004. Morphological and physiological traits influencing biomass productivity in short-rotation coppice poplar. Canadian Journal of Forest Research 34: 1488-1498. (Pubitemid 39275327)
46. RAE, A.N. 1977. Crop management economics. St. Martin's Press, New York, USA. 525 p.
47. ROSE, D., FERGUSON, K., LOTHNER, D.C. and ZAVITKOVSKI, J. 1981. An economic and energy analysis of poplar intensive cultures in the Lake States. North Central Forest Experiment Station Forest Service, U.S. Department of Agriculture, USDA Forest Service, Research paper NC-196. 44 p.
48. SEDJO, R.A. 1983. The comparative economics of plantation forestry: a global assessment. resource for the future. Washington, USA. 192 p.
49. SMITH-DANIELS, D.E. and AQUILANO, N.J. 2007. Using a late-start resource-constrained project schedule to improve project net present value. Decision Sciences 18: 617-630.
50. STREED, E. 1999. Hybrid Poplar Profits. University of Minnesota. The Center Intergrating Natural Resource Agricultural Management (CINRAM) University Minnesota, USA. 24 p.
51. SPINELLI, R. and HARTSOUGH, B. 2006. Harvesting SRF poplar for pulpwood: Experience in the Pacific Northwest. Biomass and Bioenergy 30: 439-445.
52. SPINELLI, R., CIELO, P., MAGAGNOTTI, N., VERANI, S., SPERANDIO, G. and ZANUTTINI, R. 2011. Cost and productivity of harvesting high-value hybrid poplar plantations in Italy. Forest Product Journal 61: 64-70.
53. TABBUSH, P. and BEATON, A. 1998. Hybrid poplars: present status and potential in Bretain. Forestry 71: 355-364. (Pubitemid 28537120)
54. TANKERSLEY, L. 2006. Hardwood plantations as an investment. University of Kentucky's Cooperative Extension publication FOR-101, USA. 8 p.
55. THOMSON, T.A. 1992. Optimal forest rotation when stump-age prices follow a diffusion process. Land Economics 68: 329-342.
56. UPDEGRAFF, K., BAUGHMAN, M.J. and TAFF, S.J. 2004. Environmental benefits of cropland conversion to hybrid poplar: economic and policy considerations. Biomass and Bioenergy: 411-428. (Pubitemid 39115895)
57. VAN OOSTEN, C. 2006. Hybrid poplar manual for The Prairie Provinces. Saskatchewan Forest Centre and the Forest Development Fund, 232 p.
58. WHITEMAN, A., BROWN, C. and BULL, G. 1999. Forest product market developments: the outlook for forest product markets to 2010 and the implications for improving management of the global forest estate, Working Paper FAO/FPIRS/02, Food and Agriculture Organization of the United Nations, Rome. 141 p.
59. ZHU, S., TOMBERLIN, D. and BUONGIORNO, J. 1998. Global forest products consumption, production, trade and prices: global forest products model projection to 2010. Global Forest Products Outlook Study Working Paper (GFPOS/WP/01), FAO of the United Nations, Rome: 45-78.