Pacific Southwest

Title: Economic evaluation of Eucalypt energy plantations

Author: Standiford, Richard B.; Ledig, F. Thomas

Date: 1983

Source: In: Standiford, Richard B; Ledig, F Thomas, technical coordinators. Proceedings of a work-shop on Eucalyptus in California, June 14-16, 1983, Sacramento, California. Gen. Tech. Rep. PSW 69. Berkeley, CA: Pacific Southwest Forest and Range Experiment Station, Forest Service, U.S. Department of Agriculture; p. 42-48

Station ID: GTR-PSW-069

Description: An analysis is made of the break-even price at a 6 percent and 10 percent real interest rate for "intensive" and "minimally managed" scenarios for managing eucalypt energy plantations. The break-even price is greater than the average stumpage price reported for firewood and chipwood by the State Board of Equalization. However, a conversion surplus approach shows that eucalypt firewood plantations are profitable for both the intensive and minimally managed scenario. For plantations producing chips for energy, only the minimally managed scenario, with yields greater than 58 dry tons per acre at harvest, appears to be profitable, assuming delivered chip prices of $35 per bone dry ton. The benefit-cost ratio for a commercial planting of eucalypts at the Concord Naval Weapons Station, California, showed that a return of at least 10 percent on establishment costs was highly probable with proper choice of species.

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Citation

Standiford, Richard B.; Ledig, F. Thomas   1983.  Economic evaluation of Eucalypt energy plantations.   In: Standiford, Richard B; Ledig, F Thomas, technical coordinators. Proceedings of a work-shop on Eucalyptus in California, June 14-16, 1983, Sacramento, California. Gen. Tech. Rep. PSW 69. Berkeley, CA: Pacific Southwest Forest and Range Experiment Station, Forest Service, U.S. Department of Agriculture; p. 42-48.