The Value of Hybrid Aspen Coppice Investment under Different Discount Rate, Price and Management Scenarios: A Case Study of Estonia

Abstract

Hybrid aspen is one of the most promising tree species for short-rotation forestry in Northern Europe. After the clearcutting of hybrid aspen plantation, the next generation arises from root and stump sprouts. The economic feasibility of different management strategies of hybrid aspen coppice stands has not yet been comprehensively evaluated in Northern Europe. We compared the land expectation values (LEVs) of hybrid aspen coppice stands managed according to four scenarios: three early thinning methods (corridor, cross-corridor and single-tree) followed by conventional management and intensive bioenergy production (repeated harvests in 5-year rotations) over a 25-year period in hemiboreal Estonia. We considered the historic price volatility of aspen wood assortments under various discount rates (1–20%). We found that the 25-year rotation with different early thinning methods was more profitable than short bioenergy cycles in the case of low discount rates (<5%). The LEV of short coppice cycles for only bioenergy production became more profitable in comparison with those by thinning methods, when higher discount rates (>10%) were applied. Hybrid aspen coppice stands can be managed profitably, but more risks are taken when the management strategy focuses only on bioenergy production.