Identifying optimal forest stand selection under subsidization using stand-level optimal harvesting schedules

Abstract

Governments often subsidize forest stands to ensure a stable wood supply or other environmental utilities. In this situation, efficient forest stand selection for subsidization may be desired for efficient use of public funds. In this study, we developed a method that determines the optimal set of forest stands for subsidization using an optimization technique of stand-level forest harvest scheduling. The method numerically determines the minimal subsidy and the optimal forest harvesting (commercial thinning and clearcutting) schedule of each forest stand. Further, based on an assumption that forest stands in a region can be divided into categories such that each category is substantially smaller than the total forest area, a simple sort method for identifying the optimal selection of subsidized forest stands is developed. The subsidized forest stands are determined so that annual government expenditure is minimized under “normal forest” conditions. Finally, an application example using the case of Nagano Prefecture, Japan is presented.