In his (1987) book 'Der Wert eines Vogels', Frederic Vester calculated the exchange value of a bluethroat (Luscinia svecica). Assessing diverse aspects of the dead bluethroat, from the value of raw materials such as bones, flesh and feathers, to his personal role as a pest controller, as well as a source of delight for the human soul, Vester calculated the total montary value of the bird to be 301,38 DM (approx. €154).
The same quantifications of the (im)material which Vester had shown via the bluethroat are used in modern society in all areas. The behaviour of an economic unit is no longer based on the intuitive decisions of an individual, but is rather a direct consequence of an numerical, algorithmic, computational analysis.
The automated processes which control transactions - such as those at work on the global stock exchange - could therefore govern entire enterprises via such analyses.
There are countless ways to capitalise on a forest. The forest can serve as a recreational site, as a source of value for a neighbouring town, or habitat for animals and threatened plants. terra0, however, limits itself (for the sake of convenience) to the sale of wood by the 'Selbstwerberverfahren', whereby felling licences are sold to trading partners (both industrial partners and private individuals). The buyer of the wood is responsible for both the felling, and subsequent removal of, the tree(s) they purchase.
The overall value of a forest grows with its age. However, trees that are too old no longer contribute to this potential profitablilty, on the basis of their susceptibility to illness. The proportion of the trees that are allowed to be cleared is adjusted so that a certain rate of growth, or constant tree population is guaranteed. Old, unprofitable trees are felled in order for the forest to remain healthy, as well as allow for younger trees to grow. Thus a situation arises whereby the production rate of the wood remains as high as possible, without decreasing the forest population.
The exact model depends on both the specific vegetation itself (for example, the species of trees present within the forest), as well as the age of the trees. Therefore a specific revenue model can only be created once a piece of forest has been purchased, and analysed according to the economic parameters discussed above. An simplified example of a potential model calculating the yield and self-utilization of the forest stands as such:
A medium-old spruce forest costs roughly €1 per square meter. One hectare produces as much as 10 solid cubic metres of wood annually. Selling the wood at €30 per solid cubic metre produces an annual income of €300. Thus a forest bought for €10.000 can be paid off after approximately 33 years via wood production alone. It must be noted that the increasing age (and therefore the increasing monetary value) of the forest is not taken into account in this simplified example.