•Potential for continuous cover forestry (CCF) on drained peatlands was reviewed.•CCF could be a socio-economically feasible alternative to even-aged forestry.•Future research should focus on ...studying CCF on drained peatlands.
Environmental and economic performance of forestry on drained peatlands was reviewed to consider whether continuous cover forestry (CCF) could be a feasible alternative to even-aged management (EM). CCF was regarded feasible particularly because continuously maintaining a tree stand with significant transpiration and interception capacity would decrease the need for ditch network maintenance. Managing CCF forests in such a way that the ground water levels are lower than in clear-cut EM forests but higher than in mature EM forests could decrease greenhouse gas emissions and negative water quality impacts caused both by anoxic redox reactions and oxidation and mineralization of deep peat layers. Regeneration studies indicated potential for satisfactory natural regeneration under CCF on drained peatlands. An economic advantage in CCF over EM is that fewer investments are needed to establish the forest stand and sustain its growth. Thus, even if the growth of trees in CCF forests were lower than in EM forests, CCF could at least in some peatland sites turn out to be a more profitable forest management regime. An advantage of CCF from the viewpoint of socially optimal forest management is that it plausibly reduces the negative externalities of management compared to EM. We propose that future research in drained peatland forests should focus on assessing the economic and environmental feasibility of CCF.
Abstract
State governments are responsible for the stewardship and management of more than 28 million ha of forest land in the United States. This study presents the findings of an in-depth ...examination of the characteristics and performance of sealed bid and oral auctions using records from more than a thousand tracts offered for sale by the Minnesota Department of Natural Resources, which administers one of the nation’s most robust state timber sale programs. The study found that although tracts offered for sale through oral and sealed bid auctions sold at the same rate and are undifferentiated with respect to nearly all characteristics, sealed bid tracts generated significantly higher winning prices and additional revenue per hectare than tracts sold using oral auctions. Logging businesses were more likely to win sealed auctions than oral auctions, and their portfolio of purchased tracts contained a higher proportion acquired through sealed bid auctions than the portfolio of sealed bid tracts purchased by mills. The study adds to the limited body of literature on public agency timber auctions and is the first to provide a detailed analysis of the auction methods used by a state forest management agency.
Study Implications: Public agencies use sealed bid and oral auctions to sell timber rights. This study of the nation’s largest state timber sale program found that the auction method used affects winning bid prices, the likelihood certain categories of bidders will win the auction, the allocation of timber to mills and logging businesses, and revenue generated for each hectare of timber sold. State timber sale program administrators may be able to use these findings to better understand how the choice of auction method affects the financial performance of their timber sale program as well as the allocation of timber among the major types of bidders.
•3PG was calibrated for Tectona grandis (teak) in Costa Rica.•Alternative management increased carbon storage of teak plantations.•The trade-off between carbon storage and economic return was ...high.•Uneven-aged management increased within stand structural diversity of teak plantations.•Economic profitability of uneven-aged management was dependent on the discount rate.
Plantation forestry is the ultimate alternative in reforesting degraded tropical ecosystems and in provisioning multiple ecosystem services beyond timber production. Therefore, we studied the management of Tectona grandis L.f. (teak) plantations in Costa Rica and simulated alternative management strategies incorporating simultaneously the values of carbon storage, biodiversity and timber production. Alternative management strategies included (1) extension of rotations, (2) reduced thinning and (3) conversion of even-aged to uneven-aged systems. Evaluation criteria were carbon storage in biomass, stand structural diversity as a proxy of biodiversity, and economic return from timber harvests. For growth predictions under future climatic conditions, we calibrated the hybrid forest growth model 3PG. We found that carbon storage could be increased by increasing rotation periods (e.g. +29.7% of carbon for a 50% increase in rotation length) and a no thinning management (+9.5% of carbon). For rotation extension associated economic losses were high (e.g. at 5% discount rate, the Land Expectation Value (LEV) decreased by 25.1% for a 50% extension of rotations). For thinning LEV increased with a low-thinning regime, but decreased with a no-thinning management (+9.5% and −23.6%, respectively). Payments for ecosystem services (PES) increased economic return by about 3–4%. Structural diversity increased by conversion to uneven-aged forest stands (Gini coefficients for basal area increased from 0.21 to 0.52). Economic returns from timber harvests were almost equal for even-aged and uneven-aged systems at 1% discount rate (max. −2% of LEV). At 5% discount rate, we observed economic losses of 11.1–20.1% compared to the even-aged scenario. At 10% discount rate, economic losses ranged between 43.6 and 104%. We concluded that extension of rotations and reduction of thinning intensity can be used as management strategies to increase the carbon storage of teak plantations. However, to compensate the associated economic losses through a PES scheme, payments for carbon sequestration need to be increased and special incentives for longer rotation periods and low thinning management need to be developed. The transformation into uneven-aged forest stands requires active investment at discount rates higher than 1%. Whether this investment can be offset by benefits from biodiversity and increased forest resilience is unknown and requires further investigations. Other measures of biodiversity conservation, such as the use of native and mixed tree species and the retention of old trees and deadwood are moreover necessary.
Forestry is increasingly seen as having a multiplicity of functions, some of which may lead to tensions between the preferences of different forestry stakeholders. One expression of these differing ...preferences is in the area of optimal rotation length. This paper models the optimal rotation lengths of different aspects of the forestry system – the forest owner, the timber processor, the carbon sequestered, and the social value. A microsimulation framework is utilised to simulate optimal rotation lengths that maximise different aspects of the forestry system including timber volume, processor value of harvested timber, forest owner incomes, carbon emissions and incomes adjusted for a carbon value. The main conclusion is that the optimal rotation lengths vary quite significantly depending upon the stakeholder. We assess the impact of a forest owner harvesting their timber at a time that was financially optimal for them. The processor would have the smallest difference in their annual equivalised net present value (AENPV) from the forest owner. The biggest difference is with the optimal rotation length for carbon, with the AENPV of sequestered carbon being about 50% higher than for the forest owner’s optimal rotation length. The differential for timber lies between the processor and the carbon. As a combination of private and carbon goals, the social return also lies between the processor and carbon amounts, the differential increasing with higher carbon values, reflecting an increasing importance of carbon. Additional survey results find that the financial optimum for a forest owner at a 5% discount rate differs substantially from the actual rotation length. These differing preferences for rotation length reflect the need for a systems-based approach to forestry policy, considering the needs of the system’s various stakeholders.
•The optimal rotation lengths of different aspects of the forest innovation system are modelled.•The forest owner, timber processor, carbon sequestered, and social value are considered.•Optimal rotation lengths vary quite significantly depending upon the stakeholder.•Optimal rotation length for carbon 50% higher than for the forest owner’s optimal rotation length.•Differing rotation length preferences reflect need for systems-based approach to forest policy.
In the Southeastern United States, freshwater resources are stressed due to human development, population growth, expansion of agricultural irrigation, and climate change. Restoring land to a ...low-density, fire-maintained longleaf pine (Pinus palustris) savanna and woodland ecosystem may provide distinct ecosystem services such as increases in water quantity for vulnerable watersheds. To understand how economic incentives may bolster restoration programs, we analyze the economic and hydrologic impacts of longleaf pine restoration scenarios. We compare these scenarios against other common land uses in the Coastal Plain of Georgia, a major forestry state located in the Southern United States, identifying the financial barriers and water use impacts of alternative forest management regimes. Longleaf pine restoration shows the greatest increase in water yield per acre at 66 % over baseline timber production scenarios but at a lower timber value return. Thinning planted loblolly pine (Pinus taeda) stands to low-density woodlands may offer a more cost-efficient, immediate alternative that improves water yields by 38 %. Current incentives to restore native habitats on private lands increase financial returns but lack sufficient incentives and governance to meet or exceed baseline forest income levels by $90-$235 ha-1 annually for longleaf savanna restoration. In the future, the emerging ecosystem service market in Georgia may steer decisions about competing values of carbon storage, water yield, and native habitat restoration.
ABSTRACT This study aimed to analyze economically the production of wood and charcoal from a Eucalyptus plantation stratified in three classes of productivity in northwestern Minas Gerais. Were used ...data from not thinned Eucalyptus stands whose area was stratified in high, medium and low productivity, being described by the logistic model. The data were obtained and the economic evaluation of wood production and charcoal production was carried out. The economic evaluation was made by means of the indicators: Net present value (NPV) and internal rate of return (IRR) as a function of the prices of wood and charcoal, the yield of wood in charcoal and the transport distance of wood to the charcoal production unit. The economic viability of production of Eucalyptus wood and charcoal depends on the productive capacity of the forest stand. The viability of timber and charcoal production is sensitive to the variations in the prices of both, the yield of wood in charcoal and the transport distance from the production area to the processing unit.
RESUMO O presente estudo teve como objetivo analisar economicamente a produção de madeira e carvão vegetal de um povoamento de Eucalyptus estratificado em três classes de produtividade no noroeste de Minas Gerais. Foram utilizados dados de povoamentos de Eucalyptus não desbastados cuja área foi estratificada em alta, média e baixa produtividade, sendo descritas pelo modelo Logístico. Obtidos os dados, realizou-se então a avaliação econômica da produção de madeira e para produção de carvão. A avaliação econômica deu-se por meio dos indicadores: valor presente líquido (VPL) e taxa interna de retorno (TIR) em função dos preços da madeira e do carvão vegetal, do rendimento da madeira em carvão e da distância de transporte da madeira até a unidade de produção de carvão. A viabilidade econômica da produção de madeira e de carvão vegetal de Eucalyptus depende da capacidade produtiva da área de instalação do povoamento. A viabilidade de produção de madeira e de carvão vegetal é sensível às variações dos preços de ambos, do rendimento da madeira em carvão e da distância de transporte da área de produção à unidade de processamento.
Forests provide multiple benefits at local to global scales. These include the global public good of carbon sequestration and local and national level contributions to livelihoods for more than half ...a billion users. Forest commons are a particularly important class of forests generating these multiple benefits. Institutional arrangements to govern forest commons are believed to substantially influence carbon storage and livelihood contributions, especially when they incorporate local knowledge and decentralized decision making. However, hypothesized relationships between institutional factors and multiple benefits have never been tested on data from multiple countries. By using original data on 80 forest commons in 10 countries across Asia, Africa, and Latin America, we show that larger forest size and greater rule-making autonomy at the local level are associated with high carbon storage and livelihood benefits; differences in ownership of forest commons are associated with trade-offs between livelihood benefits and carbon storage. We argue that local communities restrict their consumption of forest products when they own forest commons, thereby increasing carbon storage. In showing rule-making autonomy and ownership as distinct and important institutional influences on forest outcomes, our results are directly relevant to international climate change mitigation initiatives such as Reduced Emissions from Deforestation and Forest Degradation (REDD) and avoided deforestation. Transfer of ownership over larger forest commons patches to local communities, coupled with payments for improved carbon storage can contribute to climate change mitigation without adversely affecting local livelihoods.
The decision to harvest planted forests transcends the adopted silvicultural schedule, given that external market factors such as fluctuations in demand for timber products intensify managerial ...responses regarding the supply of raw materials. Therefore, forest managers need prior planning to correctly model market uncertainties and risks and thus remain nimble in decision-making. We identify the best probability distribution for modelling the price of Eucalyptus wood to assist managerial decision-making when advanced- or postponed-harvesting options are available for planted forests. Our study was based on a planted forest of Eucalyptus in an area of 11 677 ha belonging to a forest-based company in the Midwest region of the state of São Paulo, Brazil. We tested harvesting in the sixth, seventh and eighth year under the single-rotation silvicultural management system of forest reform. Our decisions are based on econometric tests and incorporate flexibility through the Real Options Approach with the Monte Carlo simulation method. The modelling of the recommended wood price was performed using fractional Brownian motion, which resulted in an expanded present value of USD 40 747 966 - that is, an increase of 161% over the static present value, with a 62.7% probability of the harvest occurring in the seventh year. Thus, we conclude that the incorporation of managerial flexibility in decisions on the timing of planted-forest harvesting adds value to forest investment projects considered economically unfeasible by traditional methodologies.
We develop a multiple forest use model to determine the optimal harvest date for a forest stand producing both timber and carbon benefits under a risk of fire. An empirical application is provided ...for a forest owner producing maritime pine in Southwest of France. Our results indicate that a higher risk of fire will decrease the optimal rotation period. On the contrary, higher carbon prices increase the optimal harvesting age. To investigate the contradictory effects of fire risk and carbon price on forest rotation, we identify the set of carbon prices and fire risks that lead to a given rotation age. We also show that forest owner's willingness to pay for a risk reduction can be substantial (37.33
euros by ha and by year to reduce the annual fire risk from 1.26% to 0.07%).
► We develop a multiple forest use model to determine the optimal harvest date under a risk of fire. ► A higher risk of fire will decrease the optimal rotation period. ► Higher carbon prices increase the optimal harvesting age. ► We identify the set of carbon prices and fire risks that lead to a given rotation age.
ABSTRACT This article aims to analyze Brazil’s global competitiveness in the exportation of forest products from 2008 to 2018. Data on importation and exportation were obtained from the Food and ...Agriculture Organization of the United Nations - FAO, while Revealed Comparative Advantage (RCA), Contribution to Trade Balance (CTB), and Terms of Trade (TOT) were the indicators used to measure international trade. The main results show that Brazil has a positive trade balance for forest products, mainly for wood pulp exports. Brazil’s RCA for forest products was classified as moderate to strong. As for the forest product groups, it was strong for wood pulp, weak to moderate for wood panels, weak for paper and paperboard, weak to nonexpressive for timber, and non-expressive for industrial roundwood and wood fuel. Based on Brazil’s CTB, all the forest product groups have a comparative advantage, except wood fuel. Brazil’s TOT was strong for wood panels, timber, industrial roundwood, wood pulp, in order from most to least expressive. In conclusion, Brazilian exports have comparative advantages and are competitive in the international market.
RESUMO Este artigo tem por objetivo analisar a competitividade brasileira das exportações dos produtos florestais, de 2008 a 2018. Os dados de importações e exportações de produtos florestais foram obtidos da Food and Agriculture Organization of the United Nations – FAO e para mensurar o comércio internacional utilizou os indicadores Vantagem Comparativa Revelada (VCR), contribuição ao saldo comercial (CSC) e Taxa de Cobertura (TC). Os principais resultados mostraram que o Brasil possui superavit na balança comercial de produtos florestais, sendo as exportações de celulose o principal. O VCR brasileiro de produtos florestais foi classificado de moderada a forte e, entre os agregados de produtos florestais, a celulose foi forte, os painéis de madeira de fraco a moderado, papel e papelão fraco, madeira serrada de fraco a não expressivo e a madeira industrial e madeira para energia não expressivo. Por meio do CSC brasileiro de produtos florestais, todos agregados possuem vantagem comparativa, com exceção da madeira para energia. O TC brasileiro foi forte para painéis de madeira, madeira serrada, madeira industrial, celulose, sendo os mais expressivos em ordem decrescente, respectivamente. Conclui-se que as exportações brasileiras apresentam vantagens comparativas e tem competitividade no mercado internacional.
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