Equivalent Annual Income Research Articles

Optimal Configuration of Wind–Solar–Thermal-Storage Power Energy Based on Dynamic Inertia Weight Chaotic Particle Swarm

The proposed approach involves a method of joint optimization configuration for wind–solar–thermal-storage (WSTS) power energy bases utilizing a dynamic inertia weight chaotic particle swarm optimization (DIWCPSO) algorithm. The power generated from the combination of wind and solar energy is analyzed quantitatively by using the average complementarity index (ACI) to determine the optimal ratio of wind and solar installations. We constructed a multi-objective optimization configuration model for the WSTS power generation systems, considering the equivalent annual income and the optimal energy consumption level as objective functions of the system. We solved the model using the chaotic particle swarm optimization algorithm with linearly decreasing dynamic inertia weight. To validate the effectiveness of the proposed approach, we conducted a simulation using the 2030 power energy base planning data of a particular region in Inner Mongolia. The results demonstrate that the proposed method significantly improves the annual income, enhances the consumption of wind–solar energy, and boosts the power transmission capacity of the system.

Enhancing wood to charcoal conversion efficiencies from smallholder plantation charcoal production systems: Implications for carbon emissions and sustainable livelihood benefits in North Western Ethiopia.

Charcoal production stemming from small-scale Eucalyptus camaldulensis plantations has brought about significant socio-economic benefits and improved livelihoods in Ethiopia. Nevertheless, the current practice involves the use of traditional earth mound kilns, leading to inefficiencies, reduced charcoal income, and environmental pollution. This research aims to assess charcoal conversion efficiency, perform a cost-benefit analysis, and measure gas emissions from improved charcoal-making kilns sourced from Eucalyptus camaldulensis small-scale plantations in comparison to traditional earth mound kilns in northwestern Ethiopia. A one-way analysis of variance (ANOVA) was executed, with a significance level set at 0.05. The study results indicate a significant (P < 0.001) disparity in charcoal conversion efficiency across the various tested kilns, with the ranking as follows: Green mad retort kiln (33.7%) > Casamance kiln (32.09%) > MRV steel kiln (28.25%) > traditional earth mound kilns (23.55%). The improved charcoal-making kilns enhanced wood-to-charcoal conversion efficiency by 20-43% compared to traditional earth mound kilns. In terms of financial viability, Casamance improved kilns generated the highest equivalent annual charcoal income (117,126.9 ETB/year), followed by Green Mad Retort (82,893.8 ETB/year) and MRV steel kilns (58,495.9 ETB/year). As anticipated, traditional earth mound kilns yielded the lowest net present value (47,304.3 ETB/year). Traditional earth mound kilns also exhibited significantly longer carbonization times (P < 0.001), taking 3.6 times longer than the Mark V kiln and 2 times longer than the Casamance kiln. Furthermore, the statistical analysis demonstrated that improved charcoal-making technology reduced carbon dioxide (CO2) emissions by 36.1-50.7%, carbon monoxide (CO) emissions by 39.2-54.3%, and methane (CH4) emissions by 29.6-47%. In conclusion, the use of improved charcoal-making kilns has demonstrated significant enhancements in charcoal conversion efficiency, charcoal income, and environmental sustainability. Given these positive outcomes, we strongly recommend a decisive transition from traditional to cleaner, sustainable, and less emissions-intensive charcoal making kilns.

Oral self-care, pneumococcal vaccination, and pneumonia among Japanese older people, assessed with machine learning.

Pneumonia is a leading cause of death worldwide. It is a particularly serious burden in older people, as they tend to have a weakened immune response. Identifying the role of oral self-care and pneumococcal vaccination in healthy, independent older people can aid pneumonia prevention among them. This study investigated the associations between oral self-care, pneumococcal vaccination, and pneumonia experience among independent older people. This cross-sectional study used data from the 2016 Japan Gerontological Evaluation Study (JAGES). We used machine learning to examine the association between oral self-care and the experience of pneumonia over the previous year, stratified by pneumococcal vaccination. The covariates were sex, age, years of education, equivalent annual income, medical history of stroke, oral health status (choking, dryness, number of teeth), and smoking status. The analysis included 17,217 independent older people aged 65 and over. The prevalence of pneumonia experienced among those who brushed their teeth once or less per day was 4.5% and 5.3% for those with and those without pneumococcal vaccinations, respectively. In the unvaccinated group, the odds ratio of pneumonia experience for those who brushed their teeth once or less a day was 1.57 (95% CI 1.15-2.14) compared to those who brushed their teeth three or more times a day. By contrast, there was no significant association between the frequency of toothbrushing and the experience of pneumonia among people who received pneumococcal vaccination. Oral care influenced the experience of pneumonia among independent older people who did not receive pneumococcal vaccination.

Wood production and financial return in two silvopastoral systems

Silvopastoral systems combine forestry and livestock activities, establishing productive and economic interactions that must be known in order to project their viability in the medium to long term. Important aspects of these systems are spacing arrangement, wood production and economic return. The present study was carried out on a farm with commercial forestry and aimed at evaluating wood production and its financial return in two silvopastoral systems of Eucalyptus globulus: Conventional Forestry System (CFS) in a plantation arrangement of 3.5×2.7 m, and Silvopastoral System (SSRA) (2×2)+8 m of alley. Each system was evaluated in three strata, at age 68 months. No differences (p&gt; 0.05) were found for Survival (S), Diameter at Breast Height (DBH), Height (H), and Dominant Height (DH) between CFS and SSRA values. However, both systems differed (p &lt;0.05) in wood production values (m3/ha) at age 68 months: CFS produced 83.7 m3/ha, while SSRA produced 60 m3/ha. Optimal technical rotations estimated were 12 and 13 years for CFS and SSRA, respectively. The Equivalent Annual Income (EAI) was 140 and 141 US$/ha/year for CFS and SSRA, respectively. However, SSRA requires a lower plantation investment and provides greater liquidity throughout the rotation. Forestry systems can be designed in ways that allow greater spatial integration of livestock, becoming more complementary systems.

Threshold of equivalent annual income for self‐harm ideation in mothers with infants in Japan: a cubic spline analysis

Threshold of equivalent annual income for self‐harm ideation in mothers with infants in Japan: a cubic spline analysis

West Nile Virus Seroprevalence in Manisa Province: A Population-based Study.

West Nile Virus (WNV), which causes widespread outbreaks in different parts of the world, is a risk to public health in Turkey, too. Community-based study data are needed to identify measures against possible outbreaks. This study aimed to determine the seroprevalence of community-based WNV in Manisa and to investigate the relationship between sociodemographic and socioeconomic variables. We included individuals older than two years of age (N=1,317,917) registered in the Manisa Province Family Medicine Information System. Selected participants (n=1233) were determined by a simple random sampling method. Specific IgG antibodies against WNV were investigated in serum samples using a commercial ELISA test (Euroimmun, Germany). The relationship between age, gender, location, education and income level, occupation, population density, altitude, the location of the toilet in the house, and the presence of hypertension, diabetes mellitus and cardiovascular disease variables were analyzed by chi-square, Fisher's exact test and t-test. Adjusted odds ratio (OR) with95% confidence interval (CI) for each variable were calculated by the logistic regression method to explain potential risks. WNV IgG antibodies were detected in 47 (3.8%) sera samples by ELISA. Seroprevalence was significantly correlated with independent variables of advanced age, presence of hypertension, diabetes mellitus and cardiovascular disease, low level of education and income, living in low altitude areas and the location of the toilet. In multivariate analysis; age (every one-year increase) (OR:1.05; 95% CI:1.02-1.07; p <0.001), equivalent annual income per capita below 3265 TL (OR:3.21; 95% CI: 1.53-6.73; p=0.002), and living areas below 132 meters altitude (OR=3.21; 95% CI 1.26-8.15; p=0.014) were found to be the risk factors for WNV seropositivity. In Manisa province, WNV IgG seroprevalence was detected as 3.8% with ELISA method. Older age, low income and living in regions with a low altitude were found to be associated with increased seropositivity significantly.

Difference of income inequalities of denture use by co-payment rates: A JAGES cross-sectional study.

Studies suggest that wearing dentures to restore missing teeth can have a positive impact on health status. However, income inequalities in denture wearing exist. The aim of this study was to investigate how differing co-payment rates under the current Japanese Universal Health Insurance Coverage System affect income inequalities in denture non-use among older adults with severe tooth loss. This cross-sectional study used data from the 2019 Japan Gerontological Evaluation Study (JAGES). Self-administered questionnaires were mailed to 345 356 independent people who did not receive long-term care insurance benefits and were aged ≥65 years. The dependent variable was denture non-use, and the independent variable was the equivalent annual household income. The Slope Index of Inequality (SII) and Relative Index of Inequality (RII) were used with regression-based approaches to determine both absolute and relative inequalities in denture non-use by co-payment rates. The covariates were sex, age, years of education, number of teeth and comorbidities. Of the 240 889 responses received (response rate =69.9%), we analysed 21 594 participants who fulfilled the inclusion criteria. The mean age was 72.8 years (standard deviation =4.1), and 57.6% were men. For 30 per cent, 20 per cent and 10 per cent co-payment rates, the percentages of people who did not use dentures and had severe tooth loss (≤9 teeth) were 18.3%, 13.3%, and 8.5%, respectively. All analyses confirmed significant inequalities in denture non-use. The lower the co-payment rate, the smaller the inequalities. SIIs for each co-payment rate were as follows: 30 per cent =13.35% (95% confidence interval [CI]=9.61-17.09); 20 per cent =7.85% (95% CI=4.88-10.81); and 10 per cent =4.85% (95% CI=2.55-7.16). Inclusion of interaction term between income and co-payment rate significantly lowered the inequalities by co-payment rate in logistic regression analysis and SII. For RII, although the interaction was not statistically significant, a similar trend was observed. Income inequalities in denture use existed among older adults with severe tooth loss in Japan, and the inequalities appeared to be greater when the co-payment rate was higher.

149Interaction of socioeconomic status on the association between guardians’ sense of coherence and children’s caries

Abstract Background Untreated caries is the most prevalent disease in the world. A sense of coherence (SOC) contributes to oral health. However, little is known about the association between guardians' SOC and children’s oral health. We aimed to clarify the association between guardians’ SOC and their children’s caries based on socioeconomic status in Japan. Methods This study’s subjects were Japanese public junior high schoolers, aged 12-15, and their guardians. We administered a questionnaire survey among guardians in 2016 to assess their SOC and family environment. With their students’ consent, public junior high schools shared the results of the dental examinations. Multivariate logistic regression was conducted to clarify the association between guardians’ SOC and their children’s untreated decayed permanent teeth. We also conducted a stratified analysis according to a relative poverty line. Furthermore, we included interaction term of annual equivalent incomes, educational attainment with guardians’ SOC in analysis. Results We observed a significant inverse association between children’s untreated decay and their guardians’ SOC (OR 0.93). Equivalent annual income had a significant marginal association with decayed teeth (OR 0.14). The association of SOC was stronger in the low economic group (OR 0.64). In the high economic group, educational attainment was significantly associated with decayed teeth (OR 0.50). Conclusions Guardians with higher SOC were associated with children having fewer caries. Guardians’ SOC is a preventive factor for children’s caries, especially among children with low economic status. Key messages This result suggests that guardians’ SOC is one of the psychosocial determinant of children’s oral health.

Workplace social capital and refraining from seeking medical care in Japanese employees: a 1-year prospective cohort study

ObjectivesWe examined the association of workplace social capital (WSC), including structural and cognitive dimensions, with refraining from seeking medical care (RSMC) among Japanese employees.DesignOne-year prospective cohort study.Setting and participantsWe surveyed...

Fertilization increased growth of Scots pine and financial performance of forest management in a drained peatland in Finland

The long-term effects of fertilization on the needle nutrient concentrations, growth and financial performance of a Scots pine ( L.) stand was examined in a thick-peated drained peatland forest located in Central Finland. At the trial establishment in 1985, the trees were suffering from P and K deficiencies, but their N status was good. The fertilizer treatments were Control, PK (rock phosphate + potassium chloride), ApaBio (apatite phosphorus + biotite) and wood ash, applied both with and without N and replicated six times. All treatments containing phosphorus and potassium increased foliar P and K concentrations above the deficiency limits up to the end of the study period of 26 years. The effect of the fertilization on stand volume growth of Scots pine was strong and continued still at the end of the study period. The trees on ApaBio and PK plots grew nearly two-fold and those on Ash plots over two-fold compared with the control plots. In a thinning made at the end of the study period the total logging removal on fertilized plots was 1.5–2.2 times greater and included more saw logs than on the control plots. Ash fertilizer treatment outperformed other fertilizer treatments as well as the control. With a 5% discounted equivalent annual income (EAI) of Ash fertilizer treatment was statistically significantly (p=0.009) almost three times higher than that of control. As a conclusion, fertilization (either using PK fertilizers or Ash) in N-rich drained peatlands is a financially feasible method of management.Pinus sylvestris

An analysis of potential investment returns and their determinants of poplar plantations in state-owned forest enterprises of China

China’s state-owned forest enterprises have been important national timber production bases and their timber resources have been severely degraded during the past decades. About one-third of the state-owned forestland has been classified as commercial forestland, but no economic mechanisms have been laid out on governing timber plantations under market economy. This paper demonstrates the potential investment returns and analyzes factors that directly influence the returns of fast-growing poplar plantations in a state owned-forest enterprise, China Jilin Forest Industry Group (CJFIG), in northeastern China. We examined practically possible ranges of mean annual increment (MAI), general inflation rate, rate of forest fund, and interest rate in the study area. We then computed net present values (NPV), equivalent annual income (EAI) and internal rate of return (IRR) by using the minimum, medium, and maximum values of the each determinant above. Results showed NPV ranged from $1,024 to $6,925 ha−1, EAI ranged from $120 to $623 ha−1 year−1, and IRR ranged from 13.2 to 29.3 %. We show that growing poplar plantations could be two times more profitable than managing the existing natural forests in CJFIG by referring to EAI values. Improving MAI is the most effective way to increase both NPV and IRR while changes in the one-time tax at timber harvesting or changes in inflation rate have the least effect on NPV and IRR among the determinants studied. Discount rate, which can be easily manipulated by obtaining subsidies and policy-based loans, also has substantial influence on NPV. The state owned forest enterprises in China have special advantages to obtain relatively high economic returns in developing fast-growing plantation forests under market economy.

Valuing habitat regime models for the red-cockaded woodpecker in Mississippi

Managing Mississippi's forest lands to produce both quality wildlife habitat as well as merchantable timber can be a daunting challenge for forest managers and a source of great concern for the public. In some cases, producing both the quantity and quality of habitat needed and the timber desired is all but impossible. In other cases, a delicate balance that achieves both objectives can be struck. The objective of this study was to quantitatively estimate monetary gains and losses and changes in timber inventories relative to the timber growing stock when producing more or less habitat for the red-cockaded woodpecker (RCW) ( Picoides borealis). USDA Forest Service vegetation data, habitat ratings, and economic variables were compiled for those regions of Mississippi best suited for RCWs. Data was then analyzed with Spectrum, the USDA Forest Service-based forest planning software. Models maximizing such objectives as net present value (NPV) alone as well as five different levels of RCW habitat quality over a 50-year rotation were developed. Revenue foregone, acres and volumes harvested, land expectation value (LEV), and equivalent annual income (EAI) were compared for all objectives for the South Central Hills and Pine Belt regions of Mississippi (1,036,208 acres) for three ownership types. As expected, when maximizing for any quality level of RCW habitat, revenue forgone was higher ($0.11–$49/acre/year) than for NPV alone. Volume harvested for high-quality habitat ranged from 152,296 to 10,237,649 cunits, while harvests from low-quality habitat ranged from 637,491 to 116,357,673 cunits. Lower levels of habitat management allowed for an increased emphasis on timber harvesting. In general, we determined that increases in habitat quality resulted in lower timber harvest levels and increased revenue forgone than regimes maximizing NPVs. While this result may be expected, of greater importance are the relative differences between regimes and the ability to use these values for policy decisions.

Influence of Income on Health Status and Healthcare Utilization in Working Adults: an Illustration of Health among the Working Poor in Japan

AbstractLittle is known about health of the growing subpopulation of the working poor in Japan. We aimed to evaluate health status and healthcare utilization in relation to income among Japanese working adults. We conducted a one-month prospective cohort study using a health diary in working adults from a nationally representative random sample in Japan. Based on the government criterion, the working poor group was defined as earning an equivalent annual income of less than 1.48 million Japanese-yen. For health status, we measured symptomatic episodes and health-related quality of life (HRQOL). For healthcare utilization, we measured frequencies of visits to a physician or pharmacy, and use of complementary and alternative medicine (CAM). We constructed multiple linear regression models for these measures adjusted for age, gender, and co-morbidity, using annual equivalent income as a 4-level categorical variable.Of 3,568 participants originally enrolled in the study panel, 3,477 completed the survey (response rate 97%). For the purpose of the study, of the 3,568 participants, we analyzed 1,406 working adults who were 20–65 years old (mean age, 40.8 yr: 58.4% men). There were 106 (7.5%) working poor: 56 men (6.8% of working men) and 50 women (8.5% of working women). Compared to the highest income group, the working poor reported the greater number of symptomatic episodes and a slightly lower score of physical component of HRQOL (PCS8). The numbers of symptomatic episodes among the working poor and the highest income group during the 1-month study period were 9.79 (SD, 8.77) and 7.01 (SD, 7.34), respectively (p &lt; 0.01). The PCS8 among the working poor was 48.71 (SD, 7.05) and it was 50.34 (SD, 6.55) among the highest income group (p &lt; 0.01). There was no difference of healthcare utilization by the different levels of income.We concluded that the working poor (7.5% of all working adults) more frequently report symptomatic episodes and show slightly poorer physical health status, compared to the highest income group. Healthcare utilization is not affected by income.

Economic and Ecological Effects of Diameter Caps: A Markov Decision Model for Douglas-Fir/Western Hemlock Forests

Abstract We evaluated some of the effects of not harvesting trees of 41 cm (16 in.) dbh or larger with uneven-aged management of Douglas-fir/western hemlock forests. The opportunity cost of diameter caps was measured by the difference in maximum expected net present value (NPV) or equivalent annual timber income, with or without diameter caps. For the two policies, Markov decision models were used to determine the best decision rules and their effects on the NPV, the forest area with late-seral structure, and the forest area with northern spotted owl nesting habitat structure. The opportunity cost of diameter caps was computed for 64 initial stand states defined by basal area of small, medium, or large trees of shade-intolerant species (mostly Douglas-fir) or shade-tolerant species (mostly western hemlock). The opportunity cost fell in four distinct quartiles. The 16 stand states with high basal area in large shade-intolerant and large shade-tolerant trees had the highest opportunity cost ($798–$816 ha−1year−1 or 58–76%, expected over an infinite horizon), whereas the 16 stand states with low basal area in large shade-intolerant and large shade-tolerant trees had the lowest ($59–$89 ha−1year−1 or 11–13%). The diameter caps policy increased considerably the expected area of forest with late-seral structure, over an infinite time horizon, and the expected area with spotted owl nesting habitat structure, compared with their current levels in the study region.

Opportunity Costs of Managing for Wildlife Habitat in the North Central Hills Region of Mississippi

Abstract Nonmarketed forest outputs need to be quantitatively measured and valued to project monetary gains and losses associated with varying these outputs relative to timber production. Of particular importance to many landowners is the quantity and value of timber production forgone relative to the creation or maintenance of wildlife habitat. We used scenario planning and a geographic information system to estimate potential monetary gains or losses for the North Central Hills region in Mississippi by manipulating timber growing stock to produce more or less habitat for northern bobwhite (Colinus virginianus), white-tailed deer (Odocoileus virginianus), and eastern wild turkey (Meleagris gallopavo silvestris). As expected, timber management–only scenarios, which maximized net present value (NPV), produced higher equivalent annual income values per hectare and allocated fewer habitat hectares for all wildlife species versus managing for wildlife habitat quality. Inclusion of fee hunting reduced cost differences between NPV only and improved wildlife habitat management scenarios. Simulations comparing management regimes maximizing NPV and optimizing wildlife habitat resulted in quantitative measures, which will be useful for land managers evaluating tradeoffs inherent in multiple-use management.

Natural regeneration of pine plantations in South Africa as a cost-effective way of stand re-establishment

For about 100 years, South African forestry developed a paradigm of highly intensive and expensive silvicultural technology practiced predominantly by large corporations. A broad scientific perspective on diverse silvicultural options for a wide variety of users has received little attention. As costs of intensive silviculture grow with increasing costs of energy, machinery and chemicals, large plantation areas are likely to be deforested with detrimental impacts on jobs, existing infrastructure and rural economy. This study shows an example of how timber production and profitability of pine plantations can be improved with the use of cheaper natural stand regeneration. Large-scale compartment data from the Cape plantations showed a significant trend for improved timber yields in naturally regenerated stands of Pinus radiata D. Don but not in P. pinaster Aiton. The Equivalent Annual Income (EAI) for P. radiata was improved on a hectare basis by up to US$14.8 due to (1) a saving of up to US$208.6 on tree establishment and (2) higher timber volume in naturally regenerated stands. The EAI is improved even where timber yields are significantly less, as is the case with P. pinaster , because of lower establishment costs. Assuming that natural regeneration can be successfully implemented in other parts of the country, the extrapolation of these results to two-thirds of the total area under pines, produced an impressive prospective saving of US$5 million per year or additional profit of over US$11.2 million based on a modest 4 per cent real interest rate and a 22-year average rotation cycle. Therefore, the unqualified exclusion of natural regeneration of pines may be a serious economic and social mistake made by large and small timber growers alike to the detriment of forestry-based rural development in South Africa.

Monetary Benefits in a Southern Silvopastoral System

Abstract In many regions of the United States, agroforestry has become an important land use alternative. In the South, silvopasture, which combines spatial and temporal growth of timber and livestock, is the most common form of agroforestry. An economic analysis was undertaken to demonstrate the monetary and wildlife benefits that can be accrued from a silvopastoral system in the southern United States. Wildlife-related activities as well as annual and periodic cash flows from timber and livestock sales were included in the analysis. Land expectation value (LEV), equivalent annual income (EAI), and rate of return (ROR) were compared for a silvopastoral system and four traditional southern monocultural systems. The profitability of silvopastoral systems is comparable to other land use systems. Silvopasture further provides opportunities for incorporating wildlife-related activities through hunting leases and possesses both quality and quantity of wildlife habitat not available in other systems. On average, the inclusion of hunting leases increases LEVs from 3.1 to 30.6% per acre over a range of lease and interest rates. Finally, results of this and other studies suggest that silvopasture is an environmentally and economically feasible alternative to traditional land uses. South.J. Appl. For. 26(3):159–164.

Financial performance of mixed-age naturally regenerated loblolly-hardwood stands in the south central United States

To estimate the financial performance of a natural mixed species and mixed-age management in the loblolly-pine forest type, we examined 991 FIA plots in the south central states. The plots were of the loblolly pine forest type, mixed-age, and had been regenerated naturally. We gauged the financial performance of each plot from the equivalent annual income (EAI) produced by growth and harvest, between two successive inventories. The real price EAI (REAI) measured the financial performance based on the real price change, net of inflation, between surveys. The constant price EAI (CEAI) measured stand productivity at prices at the time of the first survey. Thus, the REAI is a measure of real economic performance, including timber growth and price changes. In contrast, the CEAI is a quantity index of timber growth, the growth of each product being weighted by its price. During the period 1977–1994, the main determinant of the REAI was the price change. Due to an overall favorable price trend, the mean REAI ($158 ha −1 year −1) was much greater than the mean CEAI ($24 ha −1 year −1). Due to increasing prices, the best performing plots had very high stocking levels. Thus, the best financial strategy was to hold the stock, making the opportunity cost of conservation negative. Instead, CEAI tended to be lower on stands with high basal area, and higher in stands with many trees, a low share of hardwoods, and many trees near sawtimber size.

Financial Performance of Maple-Birch Stands in Wisconsin: Value Growth Rate Versus Equivalent Annual Income

Abstract The value growth rate and equivalent annual income per acre were computed for the maple-birch plots measured at the last two Wisconsin forest inventories. The computations reflected stand growth as well as real price changes between the two inventories. The equivalent annual income averaged $13/ac/yr on industrial forests, and $8.50/ac/yr on public and other private lands. Stand value growth rates, in percent per year, suggested much higher returns, but they are misleading because many of the stands that grew fast were understocked and gave low returns per acre. At the other extreme, some of the best stocked stands (highest basal area) also were poor financial performers. A regression equation showed that the stands of highest equivalent annual income were on better sites, had a basal area of about 80 ft²/ac, a large number of smaller poles ready to become sawtimber, large proportions of oak, elm, ash, and cherry trees, and few aspen or softwoods. No single variable had a major effect by itself, but within the range of the data, by changing all of them together, the annual income on land of average site index could double. North. J. Appl. For. 14(2):59-66.

Determining Optimal Financial Rotations under Inflationary Conditions

SYNOPSIS Various financial and quasi-financial criteria used or proposed to solve rotation problems, such as Net Present Value, Land Expectation Value, Net Present Value for an infinite series of rotations, Benefit-Cost Ratio, Profitability Index, Real Internal Rate of Return, Maximum Turnover, Forest Rent and Financial Maturity are discussed and analysed. A number of additional financial criteria not yet applied to rotation determination, such as Net Terminal Value, Nominal Internal Rate of Return, Real Internal Rate of Return for an infinite series of rotations and Equivalent Annual Income are considered as well. The efficiency of all of these is judged by their sensitivity as rotation criteria to changes in the financial environment caused by inflation and changing technology. Equivalent Annual Income is recommended as the most appropriate criterion for the selection of optimal financial rotations in a dynamic financial environment.