A hedonic price analysis of radiata pine logs for appearance timber
This study used a hedonic approach to estimate the economic value of radiata pine log attributes (small-end diameter, form and internode length) for appearance grade lumber, including Moulding & Better, Shop and Industrial Finger Joint. Models were also built at the tree level to investigate the effect of selection as conducted by breeders. A Chilean sawing study provided information on wood traits and log out-turn for 156 logs divided into three classes: pruned butt log, second log and third log. The conversion return of logs, instead of log prices, was used as the measure of log economic value. The economic values of log small-end diameter were 0.33, 0.19 and 0.10 US $/mm for the first, second and third log respectively. Concerning form, those values were 2.6, 1.4 and 0.63 US $ for a marginal improvement of this characteristic. The value of mean internode length was 0.19 US $/cm for second unpruned logs. Values for other internode length indices are also presented in this paper. Branch variables were not statistically significant in explaining the log recovery value. Finally, log recovery value was found to be elastic to the changes in small-end diameter and form, but inelastic to changes in the mean internode length.