However, putting
productive agricultural land under exclosures yields a negative NPV even under some hypothetical scenarios
of 50% rise in prices of forest products and a social discount rate halved from the base rate of 8%. Sensitivity analyses
indicate that the net present value is quite volatile to changes in biomass production and the social discount
rate. Thus, appropriate forestmanagement schemes have to be adopted in order to maximize sustainable biomass
production. Furthermore, factors such as credit constraints that affect local people's time preference should be
addressed to induce local people to discount the future at lower rate.