SIMULATED FINANCIAL RETURNS AND SELECTED ENVIRONMENTAL IMPACTS FROM 4ALTERNATIVE SILVICULTURAL PRESCRIPTIONS APPLIED IN THE NEOTROPICS - ACASE-STUDY OF THE CHIMANES FOREST, BOLIVIA

The objective of this study was to compare the financial returns and s elected environmental impacts from four alternative silvicultural pres criptions when applied to a sample area in the Chimanes Forest of Boli via. Timber growth and yield and residual tree damage were estimated b y simulating application of the prescriptions over a 50 year planning horizon using a diameter class model. Financial returns from the four prescriptions were estimated using discounted cashflow analysis. The a nnual net cashflows were computed as the product of the yields of each of three classes of timber and the corresponding weighted average net tree value for the class computed from production cost and product pr ice data taken from the literature. In the Chimanes Forest, silvicultu ral prescriptions based on highly selective cutting of single species are substantially more profitable than prescriptions involving cutting across a broad range of species given current relative prices among c ommercial species and prevailing interest rates. All prescriptions wer e shown to be highly profitable yielding a rate of return in excess of the average real rate of return from commercial activities in Bolivia over the past 8 years. Impact on woody vegetation including both dama ge and commercial removals was shown to be highest for the prescriptio n involving the most intensive management. Road construction and total area disturbed were highest for the two prescriptions based on highly selective cutting. Independent of the prescription chosen, forest pra ctices must be monitored and controlled by some organization independe nt of the concessionaires to prevent degradation of production forests .