Production efficiency of loblolly pine stands under roundwood and carbon price risks.

This study examines the efficiency of loblolly pine (Pinus taeda L.) production under roundwood and carbon price risks. The data are generated from the biophysical–economic optimization model, consisting of the loblolly pine growth and yield model in Georgia, United States, combined with a stochastic economic model. The model incorporates the timber and carbon price risk parameters and generates the optimal biomass volumes and the associated harvest profits for 56 scenarios given different silvicultural treatments and price risks. Timber production efficiencies under each scenario are evaluated using the data envelopment analysis. This study also assesses potential economic losses due to inefficient forest production. The result shows that forest landowners with lower risk tolerance have a higher profit foregone. Inefficient forest management could cause up to $319/ha and $405/ha of potential economic losses under herbicide and fertilizer treatment scenarios, respectively. As timber-related price risks can influence forest landowners' decisions, the findings of this study incorporating different risks would help forestry professionals and policymakers to establish a more realistic and greater degree of accuracy in the forest productivity evaluation. [ABSTRACT FROM AUTHOR]