Wood Prices Research Articles

Теоретичні засади розвитку системи управління ризиками на підприємствах лісопромислового комплексу

In the article, a comprehensive study of the theoretical foundations of developing the risk management system at the enterprises of the forestry complex is carried out. The essence and classification of the main risks inherent in this industry are revealed, including environmental (climate change, fires, forest degradation), economic (wood price fluctuations, globalization), and technological and social factors. Modern scientific approaches to risk management, in particular international standards (COSO, ISO 31000), and applied risk assessment methods, both quantitative and qualitative, are analyzed. The specificity of environmental risks is particularly emphasized due to their importance for the forestry sector. The proposed systemic approach to risk management includes integrating innovative technologies such as geographic information systems (GIS), drone surveillance, and artificial intelligence for more effective forest monitoring and risk prediction. This allows enterprises to be flexible in responding to threats and reduce their vulnerability to external influences. It also stressed the urgency of improving management processes through the adaptation of international experience, particularly in the forestry sector. This global collaboration in risk management is crucial for a sustainable development strategy that balances the economic interests of enterprises and the preservation of environmental safety. An innovative approach to risk management based on the introduction of digital technologies allows for increased effectiveness in risk assessment and management, which becomes an important tool for ensuring the long-term stability and competitiveness of enterprises in the forestry complex in the context of global changes. Keywords: risk management, forest industry complex, environmental and economic risks, innovative technologies, sustainable development, system approach, monitoring.

Multi-objective optimization of forest ecosystem services under uncertainty

Forest ecosystems deliver multiple services crucial for human wellbeing and welfare, with complex relationships among forest ecosystem services (FESs). Implementing sustainable forest management (SFM) policy requires insights into trade-offs, conflicts and synergies among key FESs, necessitating decision-support tools for multiple objectives. However, uncertainty in key parameters adds complexity. We formulated a tri-objective optimization problem concentrating on three vital ecosystem services in Nordic boreal forests: timber supply, climate change mitigation, and biodiversity conservation. Furthermore, future timber price uncertainty was integrated into the optimization model. Utilizing the TreeSim individual-tree growth and yield simulator, we simulated forest growth and yields, carbon stocks, and biodiversity values. Pareto-optimal solutions were found for four distinct management strategies using the epsilon-constrain method to solve the optimization problem. These management strategies differed in spatial restrictions on harvest location and timing, including considerations like harvest adjacency, green-up and maximum harvest opening area (MOA). The analysis revealed trade-offs among all three objectives, with variations influenced by management intensity. Furthermore, within the Pareto solutions for each strategy, a compromise solution was identified based on the knee-point method. The study demonstrated nuanced impacts of green-up constraints related to harvest practices, showing minor effects on harvesting, carbon sequestration, and biodiversity conservation when MOA was restricted to 35 hectares or less. However, more substantial impacts were observed with a MOA limited to 60 hectares or in a strategy without spatial restrictions. Our results underscore the importance of considering multiple objectives in forest management and policy under uncertain wood prices, preventing undesired effects from a singular or deterministic approach. This work provides insights into trade-offs and synergies, contributing to strategic planning and policy design.

Vliv způsobu hospodaření, druhové skladby a fluktuace cen dříví na ekonomický výsledek lesního hospodaření

The aim of this paper was to assess the influence of the silvicultural system (clear-cut and shelterwood), species composition of forest stands, in relation to the fluctuation of raw wood prices, on the economic results of forest management. Model analyses were performed on the example of the conditions of the CZU Forests, specifically for the third forest vegetation zone, SLT 3K. The input to the model evaluation was: data on the growth and production of the investigated tree species in the given site conditions from growth tables, the costs of forestry measures were derived from standards, the assortment was carried out on the basis of assortment tables, the prices of assortments of raw wood were taken from the data of the Czech Statistical Office for 2015 and 2019. The synthetic result of the model evaluations was the gross profit of forest production per hectare and year. The results of the analysis prove the economic advantage and greater stability of the shelterwood silvicultural system, especially with regard to lower silvicultural costs, higher volume of timber production and mutual compensation of the decrease and increase in the prices of raw wood of the evaluated tree species.

The 30/100 Classification System as a Reference for Price of Sandalwood (Santalum album) Wood in Sandalwood Oil Industry

The perfume and cosmetics industry heavily relies on quality raw materials, particularly Sandalwood oil, known for its unique scent and importance in various products. The presence of a reliable Sandalwood oil distillation industry is crucial for meeting industry demands. However, determining the price of Sandalwood wood faces challenges due to quality variations influenced by factors like geographical origin and processing methods. We have proposed a 30/100 classification system developed by CV. Suraya Nirmala and UPT Laboratorium Terpadu of Universitas Nusa Cendana. The aim of this research is to determine the sandalwood oil content of several raw materials with a 30/100 classification system as a basis for determining the price of these raw materials. The classification method involves categorizing sandalwood into four classes (30, 60, 90, and 100) based on visual observations of the brown heartwood area on the cross-section of the wood sample. The comparative analysis of Sandalwood oil volume indicates variations in oil content among the different classes of Sandalwood wood samples. Sandalwood wood class 90 exhibits a 57.49% Sandalwood oil content compared to class 100. Sandalwood wood class 60 demonstrates a 33.44% Sandalwood oil content compared to class 100. Sandalwood wood class 30 showcases a 19.86% Sandalwood oil content compared to class 100. These findings serve as a reference for determining the pricing of Sandalwood wood as raw material in the Sandalwood oil distillation industry. The price of class 100 serves as the Highest Base Price (Hd), with class 90 priced at 0.5749Hd, class 60 at 0.3344Hd, and class 30 at 0.1986Hd.

Chemical composition, particle geometry, and micro-mechanical strength of barley husks, oat husks, and wheat bran as alternative raw materials for particleboards

Particleboards are used worldwide in various industry segments, like construction and furniture production. Nevertheless, increase in wood prices and logistical challenges urge the particleboard industry to find alternative raw materials. By-products and residues from the agricultural and food industries could offer possibilities for material sourcing at a local level. This study aimed to investigate the chemical composition, particle geometry, anatomical structure, and microtensile characteristics of such material, specifically barley husks (BH), oat husks (OH), and wheat bran (WB). BH and OH were found to have comparable hemicelluloses and lignin contents to industrial wood chips but contained more ash. WB was rich in extractives and showed high buffering capacity. Light microscopy and microcomputed tomography revealed details of leaf structure for BH and OH as well as the multi-layer structure of WB. The ultimate microtensile strength of BH, various OH samples, and WB were respectively 2.77 GPa, 0.84–2.42 GPa, and 1.45 GPa. The results indicated that the studied materials could have potential uses as furnish materials in non-load bearing particleboards, where thermal or acoustic insulation properties are desirable.

Forest Biomass Feedstock Availability and Economic Contribution of Biopower Facilities in the Lake States Region

Abstract The Lake States (MI, MN, WI) region holds 54.8 million acres of forest and offers the potential to meet the increasing demand for sustainable energy through forest biomass. The objective of this study is to estimate the annual availability of biomass, after considering the sustainability threshold, for a wood price and its economic impact in the Lake States region. This study identified twenty-seven active power facilities using biomass in addition to oil, gas, and coal, with a total capacity of 3.85 million MWh per year. They consumed 2.80 million dry tons of biomass in 2019. At the current delivered wood price, an additional 9.72 million dry tons of biomass is economically available, which, if used, would generate an additional 11,112 jobs (1,583 direct and 9,529 indirect and induced), $1.54 billion in value added ($803 million direct and $733 million indirect and induced), and $2.71 billion ($1.46 billion direct and $1.25 billion indirect and induced) in total output. Operating at least one-third of the existing capacity for biomass-based power generation would add 1,969 jobs, $293 million in value added, and $413 million in total output. The expansion of the biomass biopower industry has the potential to significantly increase economic impact, especially in rural areas. Study Implications: Mapping procurement zones for resource allocation using delivered wood prices for biomass helps identify the economic availability of biomass for electric power production in the Lake States. Our results establish the market extent for biomass and identify potential areas where investment in biopower production or capacity upgrade is feasible. This study also provides insight into the economic impacts of additional biomass utilization to produce power. Most of these impacts would come about in rural areas, improving economic growth in these communities. A combined analysis estimating the potential supply and demand and the economic effects of biopower industry expansion provides valuable insight into decision-making for state forest action plans and private sector forest management plans. Furthermore, the findings from this study will help inform effective regional policy and investment decisions on biomass power industries. The method used can also be tailored to a specific facility to estimate its procurement zone, feedstock availability, and economic impacts.

Economic analysis of alternatives for second rotations in Eucalyptus globulus plantations in southeast Uruguay

Eucalyptus globulus is one of the most planted forest species in Uruguay. However, its high susceptibility to diseases has determined that in recent years most plantations reaching harvest are replaced by other species, mainly E. dunnii and E. smithii. The decision whether to maintain the plantation for an additional rotation as coppice crop or to carry out a replanting depends on the expected economic results of both alternatives. Therefore, the objective of this research was to estimate the profitability of a coppice crop of E. globulus and that of a new plantation, with two different species, E. dunnii and E. smithii. In addition, a sensitivity analysis was carried out to study the impact of eventual variations in plantation productivity, in distance to the point of sale, and in the price of wood. Results showed that the three alternatives analyzed are economically viable, but that the management as coppice crop and the replanting with E. smithii are more profitable than replanting with E. dunnii. On the other hand, the coppice management is the alternative that requires less investment and that presents fewer risks, since it is less sensitive to changes in the main variables that determine the economic result.

The Efficiency of Hard Wood Industry in Ondo State, Nigeria

Wood furniture industry is an important manufacturing sector in Nigeria for its significant contributions to the growth of national economy and industrialization as well as livelihood of the furniture makers. Therefore, evaluating efficiency of hard wood industry is important to provide useful information about the business to the furniture makers and to assist the policy makers to design appropriate policies in supporting furniture production in Nigeria. The specific objectives of this research were to describe socio-economic characteristics of furniture makers, estimate efficiency of furniture makers, determine the profitability of furniture production, identify factors influencing efficiency of furniture making and examine the problems associated with furniture makings in the study area. The study adopted a multistage sampling procedure. Data were collected from seventy furniture makers through a well-structured questionnaire. Descriptive statistics, budgetary analysis, Cobb Douglas stochastic frontier production function, inefficiency model and relative importance index were used to analyze the data. The findings revealed that 75.7% of the respondents obtained some levels of formal education; 4.3% of the furniture makers were single; 71.4% had no access to credit facility; and 7.1% exported their products beyond the boundary of Nigeria. The estimated gross margin and net profit of #7,041,255.09 (US $16,959.52) and #4,261,542.89 (US $10,264.33) respectively revealed that furniture production is profitable. The efficiency results showed that 27% of furniture makers were most technically efficient; 5.7% of them were most allocative efficient; and 10% of them were most economically efficient. Stochastic frontier production function analysis showed that firm size, labour and fixed assets had a positively significant influence on furniture production. The only identified socio-economic characteristics of furniture makers that had significant influence on efficiency of furniture production were educational level, operating experience and reinforcement training in the study area. The two critical constraints facing furniture making in the ranking scale were fluctuation of wood price and inadequacy of funds.

ЛІСОВЕ ГОСПОДАРСТВО ЯК ПЕРЕДУМОВА ПІДВИЩЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ДЕРЕВООБРОБНОГО КОМПЛЕКСУ

The presented article analyzes the financial and economic indicators of the functioning of the newly created SE "Forests of Ukraine", which have a tendency to improve. The author also noted that the domestic wood market has an artificially formed surplus, which does not contribute to the development of the woodworking complex for all market participants. This is evidenced by the inflated wood prices of the State Enterprise "Forests of Ukraine", excessive balances in branch warehouses, the use of re-sorting in corruption schemes, etc. The provided material confirms the unsatisfactory level of personnel policy in the management of the State Enterprise "Forests of Ukraine" (its structural subdivisions), in particular, regarding the elimination of all existing corruption schemes, as well as the involvement of creative business managers. The problem of underutilization of the volume of forest stands to meet the needs of the market, especially of coniferous origin, has been studied. A significant increase in wood harvesting without harming future generations and a constant increase in the level of use of the annual growth of forest stands is substantiated. The author noted that at the legislative level, there is no strategic mission of the State Enterprise "Forests of Ukraine" to ensure state policy, the goal of which is to increase the added value of the national forestry and forestry clusters. There is an imbalance between the goal declared by the state leadership, in particular, the development of the competitiveness of the domestic forestry complex on foreign markets, on the one hand, and the actual activity of the State Enterprise "Forests of Ukraine" in terms of not providing equal conditions for the activities of enterprises in the woodworking industry, on the other. In addition, the justification of experts regarding a certain threat of monopolization of the woodworking market in certain regional business entities with sufficiently large production capacities is given. Ways to ensure equal conditions for the development of business entities in the woodworking industry are proposed, which can serve as a road map for the entry of Ukrainian woodworkers into the world market.

Biomass Price Prediction Based on the Example of Poland

The aim of the study was to test the applicability of forecasting in the analysis of the variability of prices and supply of wood in Poland. It relies on the autoregressive integrated model (ARIMA) that takes into account the level of cyclic, seasonal, and irregular fluctuations and the long-term trend as tools for the assessment of the predictions of the prices of selected medium-sized wood assortments. Elements of the time series were determined taking into account the cyclical character of the quarterly distribution. The data included quarterly information about the supply (amount) and prices (value) of wood sold by state forests in the years 2018–2022. The analysis was conducted for the most popular assortments: logging slash (M2, M2ZE), firewood S4, and medium-sized wood S2AP. In the period studied (years 2018–2022), the average rate of price variation was widely scattered. The average rate of price variation for the M2ZE assortment amounted to 7%. The average rate for M2 assortment was 1%, while the medium-sized S2AP assortment displayed the greatest variation of 99%. This means that between 2018 and the present, the price increased by nearly 100%. No major fluctuations were observed for the S4 assortment and its average rate of variation amounted to 0%. The analysis found seasonal variation was observed only for S4 firewood, the price of which went up each year in October, November, and December. For this reason, the forecast was made with the seasonal autoregressive integrated moving average (SARIMA) version of the model. It is difficult to forecast the price of wood due to variations in the market and the impact of global factors related to fluctuations in supply.

Techno-Economic Assessment of Heat Supply Systems in Woodchip Drying Bases for Wood Gasification Combined Heat and Power

Among decentralized small-scale biomass energy sources with the potential to revitalize local communities, combined heat and power (CHP) from gasification is promising in terms of its high power generation efficiency. Still, it has yet to achieve operational stability, in part due to the variation in the moisture content of the woodchips used as fuel. In this study, a technical and economic evaluation was performed to establish a center for the efficient production of high-quality dry woodchips within a sawmill and to determine the technical characteristics and economic viability of a system using gasification CHP, wood waste-fired boilers or an organic Rankine cycle (ORC) as heat sources. The results showed that the net present values (NPVs) of gasified CHP, wood waste-fired boilers and ORC were −186 million, −402 million, and −103 million JPY, respectively. None of them were deemed profitable. Therefore, a sensitivity analysis was performed to determine the impact of low-quality wood prices, dry woodchips, heavy oil A, and the grid electricity charge on the NPV. The improvement of the low-quality wood price and dry woodchips sales price was effective for heat supply by gasification CHP and ORC turbines, and their combination was effective for woodchip-fired boilers.

Foil Storage of Storm-Felled Timber—Long-Term Monitoring of Norway Spruce Piles in Germany

Windthrow and other calamities pose major challenges for forestry companies. In addition to difficult processing, solutions for the medium- and long-term storage of logs without the loss of quality are required in order to counteract the oversupply and falling prices of raw wood. The application of foil piles is a comparatively young and only regionally established procedure, which is of particular interest when wet storage is not possible. As part of a case study, a total of 32 piles of Norway spruce (Picea abies) wood were monitored under foil in the forest district of Dassel (Lower Saxony State Forests, Germany), and the conditions for wood-destroying fungi and the resulting wood quality were evaluated. A considerable depreciation in the stored wood was directly related to the atmosphere inside the pile and could be attributed to various types of damage to the foil. It became evident that quality losses can only be avoided by working quickly, being careful when sealing the piles and providing intensive support in the form of monitoring and rapid repairs.

High carbon storage and oxygen (O2) release potential of Mahagony (Swietenia macrophylla) woodlot plantation in Bangladesh

Woodlot plantation takes our attention nowadays because of having high wood value, biomass and carbon stock. It also has considerable potential for regulating climate change by sinking CO2. This study investigated the market value of Swietenia macrophyllawoodlots concerning the current carbon trade mechanism, local timber and oxygen value.The carbon-di-oxide equivalence (CO2e) and release oxygen (O2 Release) ranged from 125.5 to 1004.5 Mg/ha (mean 436.3 Mg/ha) and 91.25–730.26 Mg/ha (mean 317.2 Mg/ha), respectively. Form carbon trade, the Swietenia macrophylla woodlots owner will earn 4,285–34,470 BDT/ha (mean 14,900 BDT/ha). It also seemed that the present market value of release oxygen (O2 Release) ranged from 3.2 to 25.5 million BDT/ha (average 11.1 million BDT/ha). However, the study area's average DBH, height, density, and basal area were 18.9 cm, 12.6 m, 1233 stem/ha, and 36.6 m2/ha, respectively. The above-ground biomass, below-ground biomass, and total biomass ranged from 45.9 to 389.7 Mg/ha (mean 166.5 Mg/ha), 22.5–157.7 Mg/ha (mean 71.2 Mg/ha), and 68.4–547.4 Mg/ha (mean 237.7 Mg/ha) correspondingly. Besides, the produced wood volume ranged from 64.95-1225.19 m3/ha (average 481.48 m3/ha). While the price of wood ranged from 0.8 to 15.14 million BDT/ha (mean 5.95 million BDT/ha). However, the above-ground, below-ground, and total carbon ranged 22.97–194.85 Mg/ha (mean 87.27 Mg/ha, 11.23–78.85 Mg/ha (35.61 Mg/ha), and 34.2–273.7 Mg/ha (118.89 Mg/ha) independently.Moreover, our three developed basal area-based allometric models are fit for calculating the carbon stock of Swietenia macrophylla woodlots. This study explores the potentiality of woodlots in Bangladesh. Policymakers should encourage the farmers to create more woodlots that actively participate in climate change mitigation.

Possible Utilization of Distillery Waste in the Carbonization Process.

This paper characterizes the carbonization process in terms of the utilization of distillery waste in a laboratory-scale reactor. Due to the increase in market prices of wood and environmental protection laws, biomass waste, including distillery waste, is a potential source for biochar production. An experimental investigation of the carbonization process was carried out for different mixtures of distillery waste and oak sawdust. The obtained results showed that due to the European Standard, biochar from distillery waste could be used for the production of charcoal briquettes for barbecue applications. In addition, biochar from carbonization samples with 66, 50, and 33% distillery waste meet the standards defined by the International Biochar Initiative for HMs content. The analysis of the dynamics of the heating rate showed that adding wood to distillery waste significantly shortens the carbonization process, but this reduces the number of bio-oils produced and its calorific value.

Upcycling Different Particle Sizes and Contents of Pine Branches into Particleboard.

A growing world population means that demand for wood-based materials such as particleboard is constantly increasing. In recent years, wood prices have reached record highs, so a good alternative can be the utilization of branches, which can reduce the cost of raw materials for particleboard production. The goal of the study was to confirm the feasibility of using an alternative raw material in the form of Pinus sylvestris L. pine branches for the production of three-layer particleboard. Characterization of the alternative raw material was also carried out, and the bulk density was determined. As part of the research, six variants of particleboard, 0%, 5%, 10%, 25%, and 50%, w/w, and two variants where the first one had the face layer made of branch particles and the core layer made of industrial particles, and the reverse variant (all produced panels were three-layer) were produced and then their physical and mechanical properties were studied. The results show that even if the bulk density of branch particles is significantly higher than industrial material, the internal bond and water absorption rises as branch particle content increases. In the case of bending strength and modulus of elasticity, these were decreased with a branch particle content increase. The conducted tests confirmed the possibility of using the raw material, which was usually used as fuel or mulch, to produce particleboards even in 50% content. The present solution also contributes to the positive phenomenon of carbon storage, due to incorporating the branches' biomass into panels rather than burning it. Further research should be focused on the modification of particle production from branches to obtain lower bulk density and to reach fraction shares closer to industrial particles. Furthermore, the chemical characterization of the pine branch particles (cellulose and lignin content, extractives content, pH value) would provide valuable data about this potential alternative raw material.

ECONOMIC FEASIBILITY ANALYSIS OF A FOREST-LIVESTOCK INTEGRATION SYSTEM IN ALTA FLORESTA, MATO GROSSO STATE, BRAZIL

This study investigates the economic feasibility of a livestock-forest integration system between Nellore cattle and teak species implemented in Fazenda Bacaeri, in the municipality of Alta Floresta, Mato Grosso state, Brazil. The economic analysis was based on the dataset provided by the Embrapa Agrossilvipastoril and used to elaborate a cash flow, as well as on the following selected criteria, Net Present Value, Internal Rate of Return, and Profitability Index, for a Minimum Attractive Rate of 4.15% annually. The risk analysis was also carried out using the Monte Carlo probabilistic method, considering seven variables, such as the clearcut and thinning wood price, lean cattle selling price, animal acquisition and forest harvesting costs, thinning and clearcutting yield. The calculated analyzed economic indexes are as follows R$ 4,083,307.77 NPV, 6.48% IRR and 21.36% PI, which indicates the economic feasibility of the studied integration system. The risk analysis shows that this is a low-risk project since the probability of NPV being negative was calculated as 14.4%. However, no matter how efficient the risk prediction tools are, producers must have technical assistance from trained professionals to adequately interpret and mitigate the risks. The studied forest-livestock integration system is economically feasible and low risk.

Forest plantations with Toona ciliata: impacts of managerial flexibility on economic viability

Forest plantations with Toona ciliata are presented as economically viable thanks to the suitability of their wood for high-quality niche products. However, this study verifies whether investment projects in T. ciliata plantations are economically viable with the incorporation of managerial flexibility. We apply technical-economic coefficients from T. ciliata forest plantations over a 15-year planning horizon, considering the investment project as an underlying asset and the price of wood as the only source of uncertainty. Using the Monte Carlo method, we model uncertainty to obtain project volatility, so that, using the Real Option Approach, managerial flexibility for deferral, expansion and abandonment is added to the underlying assets. Based on the traditional economic valuation methodology, we obtained a static net present value of USD 5,075, which reflects the economic viability of the investment project in T. ciliata forest plantations. Due to the uncertainty arising from timber prices, project volatility was 131.7%. Afterwards, it was found that incorporating the deferral and abandonment options added a premium of USD 2,147 to the value of the project, redirecting it towards an expanded net present value of USD 7,223. Incorporation of the real deferral and abandonment options provides flexibility and support for the decision-making process in the management of T. ciliata forest plantations, resulting in a 42.3% increase in the value of the investment project.

Ecological and economic assessment of forest ecosystem services on the example of SE "Vovchanske forestry"

Problem. Forests are the most important natural resource that has shaped the history and culture of each region. The economic assessment of forest ecosystem services is essential for improving the environmental situation, and acts as the basis for making informed management decisions. The economic assessment of ecosystem services is a complex scientific and methodological problem and is characterized by certain contradictions. One of these problems is the diversity and specificity of individual ecosystem services, in connection with which it greatly complicates the process of formation of standardized scientific and methodological approaches to the assessment of ecosystem services. Goal. The aim is to analyze methodological approaches to the cost assessment of forest ecosystem services and give an economic assessment of forest ecosystem services on the example of SE "Vovchanske forestry" of Kharkiv region. Methodology. Analytical research methods were used to determine standardized scientific and methodological approaches to the economic evaluation of ecosystem services and to identify forest ecosystem services for which there is sufficient source information for calculating the cost. The calculation method was used for the economic assessment of certain categories of forest ecosystem services and for the consolidated assessment of the cost of providing and regulating forest services of SE "Vovchanske forestry". Results. The result is a number of key principles of best practice for the cost assessment of ecosystem services “The Economics of Ecosystems and Biodiversity” (ТЕЕВ). Analysis of the main approaches to the commodification of ecosystem services made it possible to determine the established practice of their cost assessment on the basis of the Belarusian methodology "The procedure for carrying out a cost assessment of ecosystem services". The paper considers the main ecosystem services of the forest, identifies services for which there is enough initial information to calculate the cost. This is the characteristic of forestry SE "Vovchansky forestry". Of all the ecosystem services, forests are currently involved in market turnover and have an established cost of direct actual use services – providing services, and of the latter – the provision of wood. To calculate the cost of harvested wood, the average price was taken (taking into account the price of wood – firewood) per 1 m3 – 857 UAH/m3. The calculated cost of wood resources with a specific volume of felling 28.9 m3/ha is 24767 UAH/ha. In addition to wood, the forest also supplies the so-called non-wood resources, food resources and medicinal plants. The cost of wood and non-wood-providing forest services is 55297 UAH/ha. At the same time, the cost of non-wood resources exceeds the cost of harvested wood. Among the regulating ecosystem services of the forest, carbon dioxide assimilation is most often considered, which is an economically important factor in light of the problem of climate change and the Paris Agreement. In this paper, the estimate of the average annual absorption of carbon dioxide is carried out for the generalized age of plantings due to the inability to obtain data on the age indicators of certain areas of forestry and their growth areas. The calculation of the amount of carbon dioxide absorbed determines the assimilation capacity of the forest at 13.48 t/ha. At the existing rate per ton of $ 15 US (~ 420 UAH), the price of assimilation service is 5660 UAH/ha. Directly related to the assimilation of carbon dioxide, another regulatory service is the production of oxygen. At the cost of industrial oxygen production of 110.00 UAH/m3, the cost of the service is 55000 UAH/ha. Forests act as a filter, purify atmospheric air from various kinds of harmful impurities. The object of economic assessment of the assimilation potential of forest vegetation is the limiting content of pollutants in the phyto mass of the main forest-forming rocks. At the rates of environmental tax on substances emitted into the air, the cost of assimilation of pollutants is calculated, which is 17412 UAH/ha. The total cost of regulating ecosystem services of the forest is 81767,00 UAH/ha. Thus, the consolidated assessment of the cost of providing and regulating services of the forest SE "Vovchanske forestry" is 137054 UAH/ha. Originality. An economic assessment of the ecosystem services of the Volchanske forestry was carried out, the excess of the cost of regulatory services over services for the harvesting and delivery of timber and other “gifts” of the forest was determined. Practical value. The assessment of forest ecosystem services shows that the main value of the forest is not the provision of wood, but in the assimilation potential of the forest, its ability to maintain the cycle of substances and biodiversity. This must be taken into account when making environmental decisions and in order to develop paid nature management.

Engineering And Economic Analysis of Sawdust Biomass Processing As A Co-Firing Fuel In Coal-Fired Power Plant Boiler Pulverized Coal Type

One type of alternative fuel that has the potential to be developed and can contribute significantly to the NRE mix is biomass. The significance of the energy mix is obtained from the use of the co-firing system at the Coal-Fired Power Plant (CFPP) by mixing coal fuel with biomass such as sawdust. Sawdust biomass as cofiring material for CFPP is very efficient because it has energy content and availability that is easy to manage. The aim of this research is to make technical and economic analysis of sawdust biomass as solid fuel for pulverized coal CFPP Co-firing type boiler. The research stages are mapping the potential of sawdust biomass to determine the availability of potential biomass around the location of the co-firing, analyze the technical side and specifications contained in sawdust biomass raw materials to determine the suitability or feasibility of pulverized coal type CFPP specifications, and analyze the economic feasibility of developing sawdust biomass processing technology to determine the cost of production of sawdust biomass so that later it will not have a technical and financial impact. The results of the economic analysis show that the sawdust biomass production business is feasible with NPV parameters > IDR 5,252,097,371, IRR=11.1% and payback period=7.7 years. Provided that if the PLTU Rembang buys biomass at a price of Rp. 862,730/Ton. Sensitivity analysis is used to determine the steps to optimize the adjustment of the ability to purchase biomass from CFPP Rembang where the reference limit for the highest reference price for biomass is IDR 782,006. Efforts that can be made to adjust the ability to purchase biomass from the CFPP Rembang include increasing the yield by 20% or reducing the price of wood by 20%.

The Impact of Crypto Currencies on the Economy and The Financial Industry

This paper is based on the discussion about the cryptocurrencies and its impact on the financial industry. However, the adoption of cryptocurrencies is a different matter because right now the Bitcoins is considered as for wealthy, developed and tech-savvy cultures. Based on the analysis about the points of differences of the currency a countries profile can be developed who are more likely to adopt the Bitcoin. The cryptocurrencies are considered a potential solution against the accessibility, exchange, fraud, and inflation. Moreover, the prices are considerably increasing because the demand for core good is growing rapidly relative to supply. As per the analysis the fiat currency system is considered as the main reason for the future inflation however it will not cause any significant problem in the overall financial industry. The growing demand for housing is also increasing the price of lumber that also increased in the prices of wood. Consequently, all the related goodwill becomes more expensive following the trickle through the economy. Moreover, the asset market also contributes considerably to the inflation. An increase in the price of certain commodity incentivizes the people who are producing those commodities. In this regard, the producers withhold the supply of those commodities that eventually results in increased prices. Furthermore, the inflation can also be caused by the supply shock like the interruption in oil supply to Southern US caused by Katrina devastated. It caused fluctuation dramatically in the real exchange rates instead of producing desired results. The fluctuation also triggers the development of three asymmetries in the exchange market. The first factors that come into play is the loss aversion which means that the losing side will suffer more loss vocally and acutely as compare to the less vocal winning side during the time of depreciation or appreciation. Hence, the fiscal policy will experience more disturbances.