Evaluating the economic cost of environmental measures in plantation harvesting through the use of mathematical models

An important issue being discussed for Chilean pine plantation policies is the application of environmental protection measures when managing its timber areas. Typical measures, already in place in more developed countries, including imposing riparian strips and protecting fragile soils from the use of heavy machinery. While environmental protection measures have been considered vital for decades, so far there has been almost no attempt to quantify both the benefits and costs of these measures. This paper attempts to measure the costs associated with the main measures which can help both the forestry firms and the government evaluate the cost impact of the new environmental protection regulations being studied. The analysis for different environmental scenarios is carried out by modifying a mixed integer linear program, currently used for tactical planning by one forestry firm.