The present study proposes to calculate the economic sequence of two of Finland’s three main tree species, Norway spruce (Picea abies (L.) H. Karst.) and silver birch (Betula pendula Roth) when planted on Oxalias-Myrtillus type sites where both species are equally suitable, on biological grounds. In addition, the accuracy and applicability of the present Finnish yield tables to an economic comparison is tested. Benefit/cost ratio was selected as criterion of profitableness. All future net incomes and costs were discounted into the planting time and added together. The ratio between the discounted net revenues and the discounted investment costs (later called profit ratio) was the criterion. There is no reliable method to forecast the future wood prices, therefore two price ratios, birch veneer timber to spruce pulpwood and birch cordwood to spruce pulpwood, were chosen as free variables. The economic sequence of the tree species was determined as the function of these variables.
The main conclusions are, first, that under the present price ratios spruce appears to be the better choice for the forest owner, and the most promising policy for changing the situation seems to decrease the production costs of plants in birch nurseries. Second, the present Finnish yield tables are not consistent or accurate enough to enable any sufficiently reliable economic comparisons of tree species in artificial regeneration. The possible error of difference between two rather uncertain estimates is big. More work is needed to construct a uniform system of yield tables covering all main tree species, all site types, all macro climate conditions and all types of regeneration.
The PDF includes a summary in English.