Journal of Forest and Environmental Science

Institute of Forest Science, kangwon National University (강원대학교 산림과학연구소)
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Feasibility Study of Forestry Project in Sarawak State, Malaysia

  • Woo, Heesung (ARC Centre for Forest Value, Discipline of ICT, School of Technology, Environments and Design, University of Tasmania) ;
  • Turner, Paul (ARC Centre for Forest Value, Discipline of ICT, School of Technology, Environments and Design, University of Tasmania) ;
  • Kang, Byongrho (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University) ;
  • Jang, Jaeyoung (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University) ;
  • Woo, Jongchoon (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University)
  • Received : 2018.08.09
  • Accepted : 2018.08.20
  • Published : 2018.08.31
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Abstract

This research paper investigates available options for implementing clean development mechanism (CDM) project in Sarawak state, Malaysia. To investigate economic feasibility, data was collected using survey and field research methods. Also, economic analysis was estimated using net present value (NPV), internal rate of return (IRR) and payback period (PBP) during the 30 years CDM: afforestation and reforestation periods. The result of economic analysis indicated that, the payback period was estimated at 9 years with 18 percent of internal rate of return (IRR). This study also highlighted that CDM biomass supply project have a lot of challenges due to the reduction and exclusion of bio-Solid Recovered Fuel (SRF), supply and demand scenario, and impact of restriction of illegal logging in Malaysia. This study results demonstrate the methodology and guideline for future CDM investment and projects.

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