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Economic Risk Modeling in Forestry Projects Using Harvesting and Transportation Cost Variables

Luís Carlos de Freitas, Márcio Lopes da Silva, Francisco de Assis Costa Ferreira, Nilton César Fiedler and 7 more

Forests | Jul 17, 2026

Abstract

Abstract

This study evaluated the economic viability and risk of a eucalyptus forestry project by integrating deterministic and probabilistic economic analyses. Operational costs for motor–manual harvesting, manual extraction and loading, and forest transportation were estimated using standard cost models, while silvicultural, road maintenance, and transportation costs were obtained from operational records. Economic viability was assessed using Net Present Value (NPV), Internal Rate of Return (IRR), Equivalent Annual Value (EAV), and Average Production Cost (APC). Economic risk was evaluated through Monte Carlo simulation (10,000 iterations), considering ±10% variation in interest rate, transportation distance, harvesting productivity, labor, fuel, lubricant, and road maintenance costs, followed by sensitivity and correlation analyses. The project was economically viable, presenting an NPV of USD 110.11 ha−1, an IRR of 8.0%, an EAV of USD 20.43 ha−1 year−1, and an APC of USD 29.11 m−3. Transportation distance showed a limited operational slack of only 10 km when land cost was considered, indicating that the project operates close to its economic limit. Monte Carlo simulation indicated an 11.5% probability of economic infeasibility, while interest rate, transportation distance, and manual loading cost exerted the greatest negative influence on NPV. The integrated deterministic and probabilistic approach enabled the identification of critical operational thresholds for transportation distance, timber price, wood productivity, and land cost under the evaluated conditions, providing practical decision-support parameters for transportation planning, cost management, and economic risk assessment in similar forestry projects.

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Authors

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Luís Carlos de Freitas

first | Southwest Bahia State University | ORCID 0000-0002-8448-0843

Márcio Lopes da Silva

middle | Universidade Federal de Viçosa | ORCID 0000-0002-6742-4479

Francisco de Assis Costa Ferreira

middle | Universidade Federal de Viçosa | ORCID 0000-0001-7533-6404

Nilton César Fiedler

middle | Universidade Federal do Espírito Santo | ORCID 0000-0002-3895-661X

Cássio Furtado Lima

middle | International Foundation for Electoral Systems | ORCID 0000-0001-5461-1809

Roldão Carlos Andrade Lima

middle | Universidade Estadual da Região Tocantina do Maranhão | ORCID 0000-0002-7239-2555

Luciano José Minette

middle | Universidade Federal de Viçosa | ORCID 0000-0002-2038-334X

Leonardo França da Silva

middle | Universidade de Brasília | ORCID 0000-0002-9710-8100

Stanley Schettino

middle | Universidade Federal de Minas Gerais | ORCID 0000-0001-8085-1910

Victor Crespo de Oliveira

middle | Universidade Estadual Paulista (Unesp) | ORCID 0000-0003-2719-9972

Lucas Moraes Rufini de Souza

last | Universidade Federal de Viçosa | ORCID 0000-0003-4915-9795

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Citation

BibTeX

@article{Freitas2026Economic,
  title = {Economic Risk Modeling in Forestry Projects Using Harvesting and Transportation Cost Variables},
  author = {Luís Carlos de Freitas and Márcio Lopes da Silva and Francisco de Assis Costa Ferreira and Nilton César Fiedler and Cássio Furtado Lima and Roldão Carlos Andrade Lima and Luciano José Minette and Leonardo França da Silva and Stanley Schettino and Victor Crespo de Oliveira and Lucas Moraes Rufini de Souza},
  journal = {Forests},
  year = {2026},
  doi = {10.3390/f17070846},
  url = {https://doi.org/10.3390/f17070846}
}

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