The optimal tree species composition for a private forest enterprise - applying the theory of portfolio selection

Scandinavian Journal of Forest Research

Volumn 28, Issue 1, 2013, Pages 38-48

  Neuner, Susanne ^a   Beinhofer, Bernhard ^a   Knoke, Thomas ^a  

^a TECHNICAL UNIVERSITY OF MUNICH   (Germany)

Author keywords

Artificial regeneration; forest management planning; Picea abies (L.) Karst; portfolio optimization; pruning; Pseudotsuga menziesii (Mirb.) Franco var. menziesii; risk

Indexed keywords

ARTIFICIAL REGENERATION; FOREST MANAGEMENT PLANNING; PICEA ABIES (L.) KARST; PORTFOLIO OPTIMIZATION; PRUNING; PSEUDOTSUGA MENZIESII;

EARNINGS; FINANCIAL DATA PROCESSING; HARDWOODS; INDUSTRY; OPTIMIZATION; PLANTS (BOTANY); RISKS; SOCIAL ASPECTS; VALUE ENGINEERING;

REFORESTATION;

DATA PROCESSING; FINANCE; FOREST MANAGEMENT; HARDWOODS; OPTIMIZATION; PICEA ABIES; PRUNING; PSEUDOTSUGA MENZIESII; REFORESTATION; RISK ASSESSMENT;

ACER; ALNUS; FAGUS; LARIX; LARIX DECIDUA; PICEA ABIES; PINUS SYLVESTRIS; PSEUDOTSUGA; PSEUDOTSUGA MENZIESII;

EID: 84870418301     PISSN: 02827581     EISSN: 16511891     Source Type: Journal    
DOI: 10.1080/02827581.2012.683038     Document Type: Article

References (46)

1. Beinhofer, B. 2008. Zum optimalen Einschlagszeitpunkt von Fichtenbeständen [Concerning the optimal rotation period of Norway spruce stands]. Forst- u. J.-Ztg. (Forst- und Jagdzeitung), 179(7): 121-132.
2. Beinhofer, B. 2009. Zur Anwendung der Portfoliotheorie in der Forstwissenschaft: Finanzielle Optimierungsansätze zur Bewertung von Diversifikationseffekten [Application of the portfolio theory in forestry: Financial optimization approaches for assessing diversification effects]. Doctoral dissertation. Freising: Zentrum Wald-Forst-Holz Weihenstephan, Technische Universität München. Retrieved January 5, 2012, fromhttp://deposit.ddb.de/cgi-bin/dokserv?idn=994928270&dok_var=d1&dok_ext=pdf&filename=994928270.pdf.
3. Beinhofer, B. 2010. Producing softwood of different quality: Does this provide risk compensation?. European Journal of Forest Research, 129(5): 921-934. doi:10.1007/s10342-009-0280-8
4. Beinhofer, B. and Knoke, T. 2010. Finanziell vorteilhafte Douglasienanteile im Baumartenportfolio [Financially advantageous interest of Douglas fir in a portfolio of different tree species]. Forstarchiv, 81(6): 255-265.
5. Beinhofer, B. & Knoke, T. 2011a. Finanziell vorteilhafte Douglasienanteile [Financially advantageous interest of Douglas fir]. AFZ-DerWald, 66 6, 12-14.
6. Beinhofer, B. & Knoke, T. 2011b. Vorteilhafte Douglasienanteile unter variierenden Rahmenbedingungen [Financially advantageous interest of Douglas fir under varying circumstances]. AFZ-DerWald, 66 6, 15-17.
7. Beinhofer, B., Haase, S. and Knoke, T. 2009. Anwendung der Portfoliotheorie in der Forstwissenschaft [Applying the Portfolio Theory in forest science]. Forstarchiv, 80: 99-108.
8. Brandl, H. 1988. Entwicklungen der Ertragslage der vier Baumarten Fichte, Kiefer, Buche und Eiche im Staatsforstbetrieb von Baden-Württemberg und ihr Einfluss auf die waldbauliche Planung [Developing of the profit situations concerning the four tree species Norway spruce, Scots pine, Beech and Oak in the state enterprise of Baden-Wuerttemberg and their effect on forest planning]. Allg. Forst- u. J.-Ztg., 159: 164-170.
9. BStELF-Bayerisches Staatsministerium für Ernährung, Landwirtschaft und Forsten 1982. Richtlinien für die mittel- und langfristige Forstbetriebsplanung in der bayerischen Forstverwaltung [Guidelines for the medium and long term forest planning in the Bavarian administration of state forest]. Munich: Bavarian State Ministry of Food, Agriculture and Forests.
10. BStELF-Bayerisches Staatsministerium für Ernährung, Landwirtschaft und Forsten 1999. Richtlinie zur Wertastung und zur Pflege von Astungsbeständen [Guidelines for the pruning and treatment of pruned stands]. Munich: Bavarian State Ministry of Food, Agriculture and Forests.
11. Buongiorno, J., Dahir, S., Lu, H. C. and Lin, C. R. 1994. Tree-size diversity and economic returns in uneven-aged forest stands. Forest Science, 40: 83-103.
12. Cubbage, F., MacDonagh, P., Sawinski, J. Jr., Rubilar, R., Donoso, P.Ferreira, A.,. 2007. Timber investment returns for selected plantations and native forests in South America and the Southern United States. New Forests, 33: 237-255. doi:10.1007/s11056-006-9025-4
13. Daldrup, A. 2005. Kreditrisikomaße im Vergleich [Measure of credit risk in comparison] (Tech. Rep. No. 13). Göttingen: University of Göttingen, Institute of Information Systems. Retrieved January 5, 2012, fromhttp://www2.as.wiwi.uni-goettingen.de/getfile?DateiID=571
14. Dieter, M. 1997. Anwendung von Modellen zur Entscheidung unter Risiko auf betriebliche Fragestellungen: Dargestellt am Beispiel des Voranbaus in Fichtenreinbeständen [Application of models for decision making under risk to operational questions: Presented by the example of underplanting monocultures of Norway spruce]. Dissertation. Schriften zur Forstökonomie: 16. Frankfurt/M: J.D. Sauerländer's.
15. Donnelly, S. 2011. Land-use portfolios and the management of private landholdings in south-central Indiana. Regional Environmental Change, 11: 97-109. doi:10.1007/s10113-010-0124-6
16. Gong, P. and Löfgren, K. 2003. Risk-aversion and the short-run supply of timber. Forest Science, 49: 647-656.
17. Griess, V. C. and Knoke, T. 2011. Growth performance, wind-throw, and insects: meta-analyses of parameters influencing performance of mixed-species stands in boreal and northern temperate biomes. Canadian Journal of Forest Research, 41: 1141-1159. doi:10.1139/x11-042
18. Hanewinkel, M., Hummel, S. and Albrecht, A. 2011. Assessing natural hazards in forestry for risk management: a review. European Journal of Forest Research, 130: 329-351. doi:10.1007/s10342-010-0392-1
19. Heikkinen, V. 2002. Co-integration of timber and financial markets-Implications for portfolio selection. Forest Science, 48: 118-126.
20. Heikkinen, V. 2003. Timber harvesting as a part of the portfolio management: A multiperiod stochastic optimisation approach. Management Science, 49: 131-142. doi:10.1287/mnsc.49.1.131.12752
21. Hildebrandt, P., Kirchlechne, P., Hahn, A., Knoke, T. and Mujica, H. R. 2010. Mixed species plantations in Southern Chile and the risk of timber price fluctuation. European Journal of Forest Research, 129: 935-946. doi:10.1007/s10342-009-0284-4
22. Hildebrandt, P. and Knoke, T. 2009. Optimizing the shares of native tree species in forest plantations with biased financial parameters. Ecological Economics, 68: 2825-2833. doi:10.1016/j.ecolecon.2009.05.013
23. Knoke, T. 2008. Zur Rolle der Douglasie in einem finanziell optimierten Baumarten-Portfolio [The role of Doulgas fir in a financially optimized tree species portfolio]. LWF Wissen, 59: 83-87.
24. Knoke, T. and Hahn, A. 2007. Baumartenvielfalt und Produktionsrisiken: Ein Forschungseinblick und -ausblick [Diversity of tree species and risk: A research insight and outlook]. Schweizerische Zeitschrift für Forstwesen, 158(10): 312-322. doi:10.3188/szf.2007.0312
25. Knoke, T. and Seifert, T. 2008. Integrating selected ecological effects of mixed European beech-Norway spruce stands in bioeconomic modelling. Ecological Modelling, 210(4): 487-498. doi:10.1016/j.ecolmodel.2007.08.011
26. Knoke, T., Stimm, B., Ammer, C. and Moog, M. 2005. Mixed forests reconsidered: A forest economics contribution on an ecological concept. Forest Ecology and Management, 213(1-3): 102-116. doi:10.1016/j.foreco.2005.03.043
27. Kölling, C., Dietz, E., Falk, W. & Karl-Heinz, M. 2009. Provisorische Klima-Risikokarten als Planungshilfen für den klimagerechten Waldumbau in Bayern [Temporary risk maps as planning aid for a climate adequate forest conversion in Bavaria]. LWF Wissen, 63 1, 31-39. Retrieved January 5, 2012, fromhttp://www.lwf.bayern.de/veroeffentlichungen/lwf-wissen/63-fichte-im-klimawandel/provisorische-klima-risikokarten-als-planungshilfen.pdf.
28. Kölling, C., Beinhofer, B., Hahn, A. & Knoke, T. 2010. SPiquotSPiWer streut, rutscht nichtSPiquotSPi: Wie soll die Forstwirtschaft auf neue Risiken im Klimawandel reagieren? [How should forestry respond to new risks in times of climate change?]. AFZ-DerWald, 65 5, 18-22.
29. Kublin, E. & Scharnagl, G. 1988. Verfahrens- und Programmbeschreibung zum BWI-Unterprogramm BDAT [Process and program description of the National forest inventory subprogram BDAT]. Freiburg: Forest Research Institute Baden-Württemberg.
30. Lin, C.-R. and Buongiorno, J. 1998. Tree diversity, landscape diversity, and economics of Maple-Birch forests: Implications of Markovian models. Management Science, 44(10): 1351-1366. doi:10.1287/mnsc.44.10.1351
31. Lohmander, P. 1993. Economic two stage multi species management in a stochastic environment: The value of selective thinning options and stochastic growth parameters. Systems Analysis Modelling Simulation, 11: 287-302.
32. Lönnstedt, L. and Svensson, J. 2000. Return an risk in Timberland and other investment alternatives for NIPF owners. Scandinavian Journal of Forest Research, 15: 661-669. doi:10.1080/02827580050216914
33. Markowitz, H. 1952. Portfolio selection. The Journal of Finance, 7: 77-91.
34. Mellert, K. H., Fensterer, V., Küchenhoff, H., Reger, B., Kölling, C.Klemmt, H. J. 2011. Hypothesis-driven species distribution models for tree species in the Bavarian Alps. Journal of Vegetation Science, 22(4): 635-646. doi:10.1111/j.1654-1103.2011.01274.x
35. Mosandl, R. and Knoke, T. 2002. Holzpreisschwankungen als Problem der Forstwirtschaft. AFZ-DerWald, 57(3): 118-119.
36. Poddig, T., Dichtl, H. and Petersmeier, K. 2001. Statistik, Ökonometrie, Optimierung: Methoden und ihre praktische Anwendungen in Finanzanalyse und Portfoliomanagement [Statistics, econometrics, optimization: Methods and their practical application in financial analysis and portfolio management], (4th edn), Bad Soden/Ts: Uhlenbruch Verlag.
37. Pretzsch, H., Biber, P. and Durský, J. 2002. The single tree-based stand simulator SILVA: Construction, application and evaluation. Forest Ecology and Management, 162(1): 3-21. doi:10.1016/S0378-1127(02)00047-6
38. Rau-Bredow, H. 2004. "Value at risk, expected shortfall, and marginal risk contribution". In Risk measures for the 21st century, Edited by: Szego, G. 61-68. New York: Wiley.
39. Reeves, L. and Haight, R. 2000. Timber harvest scheduling with price uncertainty using Markowitz portfolio optimization. Annals of Operations Research, 95: 229-250. doi:10.1023/A:1018974712925
40. Roessiger, J., Griess, V. C. and Knoke, T. 2011. May risk aversion lead to near-natural forestry? A simulation study. Forestry, 84(5): 527-537. doi:10.1093/forestry/cpr017
41. Sharpe, W. 1964. Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19: 425-442.
42. Tahvonen, O., Pukkala, T., Laiho, O., Lähde, E. and Niinimäki, S. 2010. Optimal management of uneven-aged Norway spruce stands. Forest Ecology and Management, 260: 106-115. doi:10.1016/j.foreco.2010.04.006
43. Thomson, T. 1991. Efficient combinations of timber and financial market investments in single-period and multiperiod portfolios. Forest Science, 37: 461-480.
44. Thomson, T. 1997. Long-term portfolio returns from timber and financial assets. Journal of Real Estate Portfolio Management, 3: 57-72.
45. Wagner, J. E. and Rideout, D. B. 1991. Evaluating forest management investments-The capital asset pricing model and the income growth-model. Forest Science, 37: 1591-1604.
46. Weber, M. 2002. Portefeuille- und Real-Optionspreis-Theorie und forstliche Entscheidungen [Portfolio and Real option price theorie and forest decisions]. Schriften zur Forstökonomie: 23. Frankfurt/M: J.D. Sauerländer's.