Related Experiment Video
Updated: Sep 19, 2025
11:53
Spatial Multiobjective Optimization of Agricultural Conservation Practices using a SWAT Model and an Evolutionary Algorithm
Published on: December 9, 2012
13.1K
Optimizing forest sector performance based on life cycle cost analysis and real options.
Gustavo Alves de Melo1, Thuliany Fernandes Araújo Paes2, Jaqueline Severino da Costa2
1Federal University of Lavras, Department of Agroindustrial Management, P.O. Box 3037, Lavras 37200-000, MG, Brazil.
The Science of the Total Environment
|June 6, 2025
Summary
This study confirms eucalyptus production is economically viable, especially with Reform/Coppice or Reform/Conduction methods. Chemical fertilization and manual ant control were most cost-effective, highlighting probabilistic analysis for decision-making.
Area of Science:
- Forestry economics
- Agricultural cost analysis
Background:
- Eucalyptus production is a significant industry in Brazil.
- Accurate cost assessment is crucial for sustainable forestry operations.
Purpose of the Study:
- To assess the life cycle costs of eucalyptus production.
- To evaluate economic viability using advanced analytical methods.
- To identify key cost drivers and cost-reduction strategies.
Main Methods:
- Economic Feasibility Analysis (EFA)
- Monte Carlo Simulation (MCS) for uncertainty analysis
- Real Options Analysis (ROA) for strategic flexibility
Main Results:
- Eucalyptus production project confirmed as economically viable.
- Reform/Coppice and Reform/Conduction scenarios yielded highest returns.
- Wood price and production volume were primary economic influencers.
- Chemical fertilization and manual ant control identified as most cost-effective practices.
Conclusions:
- Probabilistic methods enhance cost analysis and decision-making in forestry.
- Strategic scenario planning (Reform/Coppice, Reform/Conduction) optimizes returns.
- Targeted cost-reduction measures (fertilization, pest control) improve profitability.
Keywords:
Economic feasibility analysisForestry sectorLife cycle cost analysisMonte Carlo simulationReal optionsMore Related Videos
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