Inclusion of industries can have a great
influence on the calculated profitability of
different options, as well as on the practicality
of obtaining capital for significant expansion of
these land uses. Where to draw the line between
the response option and the rest of the economy
is not always clear. In the present analysis,
charcoal manufacture costs are included for
charcoal plantations (but not pig-iron industry
investments). For pulp, only the plantations
(not the pulp mills) are included. Given that the
investment needed for a pulp mill is very large
compared to that for the silvicultural plantations
that supply it, lack of capital poses a
significant restraint on large-scale expansion
(i.e. the “establishment cost per ha” given in
Table 4 greatly understates the cost of the full
array of investments needed to expand this land
use). For sawlog plantations, the present
analysis only includes the plantations themselves,
while for timber management and
logging the sawmills are included.