Financial Assessment of Forest Management Systems in the Community Forests: A Case Study from the Midhills of Nepal

Table 8

Sensitivity analysis of two forest management systems.

Particulars	Benefit-cost ratio
	SciFM	ConvFM
(a) Market influence
(1) Discounting at 15% per annum	2.00	2.13
(2) The daily wage of NRs 1000/day	1.94	2.13
(3) Timber price of NRs 700/cft	1.70	2.84
(4) All three occurred together	1.63	1.97
(b) Forest user groups behaviour
(1) All timber sold at a subsidized price (NRs 100/cft)	0.84	1.46
(2) Two-thirds of timber sold at a subsidized price (75%) and rest in the market price (25%)	1.11	1.66
(3) Half of the forest products sold at a subsidized price (50%) and rest in the market price (50%)	1.54	1.88
(c) Forest officials’ behavior in regulating harvest
(1) 80% of the volume specified in the plan was allowed for harvesting	1.81	2.10
(2) 50% of the volume specified in the plan was allowed for harvesting	1.45	2.04
(d) Fluctuations in benefits and costs
(1) Both cost and benefits increased by 5% annually	1.77	2.21
(2) Both cost and benefits decreased by 5% annually	1.77	1.83

Note. At 10% discounting rate, expect specified.