Abstract

This study introduces a new approach for the cost reduction estimation of small-diameter wood by selecting a forest management regime that cuts down the costs of the whole supply chain used for industrial and/or energy purposes to add value. The denser forest management was found to decrease the total costs, giving the highest added value potential. The highest added value averaged 14.6% (6.1 €/m3) was found from denser forest management of 3000 trees per hectare from dryish heath (VT) stands with supply chain scenario for energy purposes compared to baseline. Our study suggests that in some places it is worth considering the denser forest management regime supplied for energy purposes. The study pointed out that not only the profitability of forest management matters but also harvesting and supply chain costs. This means that the economics of forest resource systems must be studied in their entity and site-dependently in relation to biomass use. This study showed that forest management recommendations and decisions have a high influence on removal of forest biomass, profitability of forest management and further total costs of forest biomass supply chains.

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