Accounting for climate change in a forest planning stochastic optimization model

Abstract

An approach is proposed for incorporating the variations in timber growth and yield due to climate change uncertainty into the forest harvesting decision process. A range of possible climate scenarios are transformed by a forest growth and yield model into tree growth scenarios, which in turn are integrated into a multistage stochastic model that determines the timber cut in each future period so as to maximize net present value over the planning horizon. For comparison purposes, a deterministic model using a single average climate scenario is also developed. The performance of the deterministic and stochastic formulations are tested in a case study of a medium-term forest planning problem for a Eucalyptus forest in Portugal where climate change is expected to severely impact production in the coming years. Experiments conducted using 32 climate scenarios demonstrate the stochastic model's superior results in terms of present value, particularly in cases of relatively high minimum timber demand. The model should therefore be useful in supporting forest planners' decisions under climate uncertainty.