Financial and economic analyses of conventional and new technology harvesting systems

Author

Rahim, A S Abdul ; Shahwahid, H. O Mohd

Author_Institution

Dept. of Econ. Fac. Econ. & Manage., Univ. Putra Malaysia, Serdang, Malaysia

fYear

2010

fDate

18-20 June 2010

Firstpage

180

Lastpage

184

Abstract

This paper examine the various committed new technology and improve logging activities ascribed in the `Logfisher´ Practice (LP) rather than Conventional Practice (CP). The result of cost analysis shows that the cost constitutes under LP is higher than under CP. Incremental average per ha total cost rose by 46.86% to RM13,576/ha. While the incremental average per m³ total cost increased by 57.41% to RM267.80/m³. Hence, CP was slightly more profitable and exceeds the Net Present Value (NPV) of LP. Similarly, the Benefit-Cost Ration (BCR) for CP is better than LP. On the other hand, the result of the economic analysis of 40-year period showed that the LP system (NPV = RM9302/ha) provided a higher level of overalls benefits and welfare to the society as a whole as opposed to CP (NPV = RM8497/ha).

Keywords

cost-benefit analysis; economic cycles; forestry; profitability; timber; Logfisher Practice; benefit-cost ration; conventional practice; cost analysis; economic analysis; financial analysis; logging activities; net present value; new technology harvesting systems; profitability; Costs; Cranes; Economic indicators; Government; Paper technology; Production; Protection; Rain; Technology management; Winches; ‘Logfisher’ Net Present Value (NPV); ‘Logfisher’ Practice (LP); Conventional Practice (CP);

fLanguage

English

Publisher

ieee

Conference_Titel

Financial Theory and Engineering (ICFTE), 2010 International Conference on

Conference_Location

Dubai

Print_ISBN

978-1-4244-7757-9

Electronic_ISBN

978-1-4244-7759-3

Type

conf

DOI

10.1109/ICFTE.2010.5499401

Filename

5499401