29Amaro Forests - Chap 25 25/7/03 1:54 pm Page 296
296 T. Eid
to silvicultural treatment, an additional step may be taken if a link between the
errors, the consequential incorrect treatment decisions and the corresponding eco-
nomic losses is established. Such an approach can probably provide valuable infor-
mation that can be used as a supplement to considerations based on errors only.
Hamilton (1978) suggested cost-plus-loss analyses as a possible way to create a
link between err
ors and economic losses. In cost-plus-loss analyses, the total costs,
i.e. the costs of the inventory and the expected economic losses as a result of future
incorr
ect decisions due to errors in measurements, are minimized. This approach
has been used several in evaluations related to the design and intensity of invento-
ries (Burkhart et al., 1978; Larsson, 1994; Ståhl, 1994; Ståhl et al., 1994; Eid, 2000).
This chapter investigates how cost-plus-loss analyses can be applied in model
testing based on independent data.
A key issue for discussion is to what extent a
quantification of economic losses (i.e. economic losses as a result of future incorrect
decisions due to errors in models) provides information that can be used as a sup-
plement to considerations founded solely on the errors. A case study based on mod-
els for prediction of basal area mean diameter (D
ba
) and number of trees/ha (N) in
forest stands (Eid, 2001) is presented. A test data set of 85 observations was applied.
Materials and Methods
Background
Information about D
ba
and N in a forest stand is generally important in forest man-
agement planning in Norway. For analyses with large-scale forestry scenario models
such as
AVVIRK-2000 (Eid and Hobbelstad, 2000) and GAYA-JLP (Lappi, 1992; Hoen and
Gobakken, 1997), these variables are used as input in submodels for diameter
growth (Blingsmo, 1984), height development (Braastad, 1977; Tveite, 1977) and
mortality (Braastad, 1982; Eid and Øyen, 2003), as well as in models predicting tim-
ber values (Blingsmo and Veidahl, 1992) and logging costs (e.g. Eid, 1998).
Eid (2001) developed models for prediction of D
ba
and N in forest stands in
order to use them in practical management planning in Norway as an alternative to
field measurements. The models were adapted to variables available from two dif-
ferent types of stand inventories, i.e. ‘relascope inventories’ where the mean height
by basal area (H
L
) is computed from height measurements of sample trees selected
by means of the relascope, and the basal area/ha (BA) is measured by the relascope
at subjectively selected sample plots, and ‘visual inventories’ with a direct and sub-
jective determination of volume/ha (V) in the field. For both types of inventories,
stand age (A) and stand site quality (S) (i.e. dominant height in metres at breast
height, age 40 years) are determined through subjectively selected samples in
stands.
Questions related to model type, to statistical properties of the fitted models
(e.g. precision, correlation and collinearity), to logical consistency of the models and
to tests on independent data wer
e all assessed when the models were developed
(Eid, 2001). In the final models adapted to relascope inventories (Model 1), BA, H
L
and A were selected as independent variables, while V, A and S were selected in the
models adapted to visual inventories (Model 2).
The main conclusions of Eid (2001) were that Model 1 could be applied at an
aggr
egated level for use in large-scale forestry scenario analyses because there was
no evidence of systematic errors in tests on independent data. The substantial level
of the random errors, however, indicated that one should be cautious in exclusively
relying on the model with respect to decisions at the stand level. Model 2 was not