| The Ontario's forestry industry is looking into the profitability of applying Intensive Silviculture in Ontario. However, available research suggests that Intensive Silviculture is not profitable when evaluated at the stand level and from the point of view of a forestry firm. Forest level analysis of Intensive Silviculture might lead to positive returns of Intensive Silviculture due to the Allowable Cut Effect (an increase in the allowable cut due to an increase in the growth rate of timber). This thesis evaluates the Allowable Cut Effect as an instrument to lessen the costs of Intensive Silviculture. However, research into the Allowable Cut Effect reviled that the Allowable Cut Effect has many shortcomings. To address the shortcomings of the Allowable Cut Effect the Integrated Lumber Production Model was developed to incorporate mill production economics, dynamic transportation costs, stumpage, harvest and silvicultural costs into the economic analysis intensive forest management. |
