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The invasion of a forest by a pathogen is a complex dynamic and spatial problem. The induced disturbances do not only reduce the present availability of the affected tree species but alter its future availability, population structure and distribution as well. These disturbances also have an impact on the prices of wood products via supply shocks, which, in turn, influence forest management choices, thus introducing feedback effects between market and ecological dynamics. The main objective of this paper is to evaluate the economic impact of an invasive pathogen at a large scale by integrating the biophysical and economic aspects of the invasion into a dynamic and spatially explicit setting. The analysis is developed using a modified version of the French Forest Sector Model (FFSM), a recursive partial equilibrium model, to which a specifically designed pathogen spread and mortality model have been coupled. We calibrated the model to represent the ash dieback invasion in France. Results showed that impacts are not homogeneous across regions and generally depend on the resource distribution, pathogen spread and market structure. We observed that the behavioural adaptation of forest managers (i.e. regeneration and harvesting choices) is a non-negligible component of the total standing volume loss.

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