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Activity Analysis in Forest Planning

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Linear programming has been the primary mathematical programming technique for multiple-use land management planning. Over the last two decades, forest planning research has emphasized modeling and computational issues of linear programming, rather than it uses for valuation and economic analysis. This paper shows that postoptimal activity analysis provides an effective tool for economic valuation of multiple-resource outputs and production factors. Marginal value curves are easily derived for both market and nonmarket outputs, and for production factors. This and other information are useful in comparing production alternatives and provide a basis for the economic rationale currently sought in multiple-use planning. Also, an efficient joint cost allocation scheme is proposed for use as an accounting system to track efficiency of production for market goods and to audit for rational evaluation of nonmarket goods. For. Sci. 34(1):3-18.

Keywords: Linear programming; accounting prices; multiple-use planning; postoptimal analysis; transfer pricing

Document Type: Journal Article

Affiliations: Professor, Department of Forest Management, Oregon State University

Publication date: March 1, 1988

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
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