Development and analysis of an opportunity cost simulation accounting for the spatial distributions of local forest management

Abstract

Nakajima T., Kanomata H., Shiraishi N., Matsumoto M., 2017. Development and analysis of an opportunity cost simulation accounting for the spatial distributions of local forest management. Ann. For. Res. 60(1): 145-159.Abstract. We describe the development of a simulation based on neighbor relationships between small stands forming many sub compartments in a forested area. We used a Geographic Information System (GIS) to simulate local forest management plans. The distribution and intensity of different silvicultural practices were visualized. We also determined whether, at specified rates, the implementation of forestry operations was optimum for the desired outcomes in specific compartments. Based on the results, we discuss the tradeoff between two silvicultural strategies. First, the rational economic strategy, which generally focuses on implementing silvicultural prescriptions in some compartments. Second, the environmental strategy, which generally focuses on implementing silvicultural prescriptions in all compartments, taking account of environmental forestry practices. The difference between profits under the two strategies at the study site was approximately 20 %, and this economic difference could be considered to represent "opportunity costs" of a commitment to environmentally conscious management. We created the simulation to map the strategies based on the location of existing forest roads and any special constraints. In addition, the model could be used as a decision-making tool for considering the tradeoff between environmental and economic strategies.

Opportunity cost of natural forest management in the Arenal-Huetar Norte Conservation Area, Costa Rica

“…These OCs could be used as a reference to calculate compensation for owners who practice SFM in their forests, or who receive Payment for Environmental Services, with opportunity cost payments differentiated according to region. The methodology used here assists in determining the economic performance of land use (the economic and environmental components of SFM) (Naidoo and Adamowicz 2006;Adams et al 2010;Bryan et al 2011;Nakajima et al 2017). However, the adjustment required for implementing a differentiated compensation associated with OC would force a paradigm shift in the current institutional framework in Costa Rica -changes for which the country may not be ready for or interested in carrying out.…”

Costo de oportunidad del manejo forestal en bosque natural en el Área de Conservación Arenal-Huetar Norte, Costa Rica

“…Esta pérdida podría considerarse una referencia, con miras a calcular la compensación para quienes someten su bosque al MFS o al pago por servicios ambientales; diferenciando el reconocimiento por costo de oportunidad, de acuerdo con el lugar donde se ubique la unidad de manejo. Los resultados obtenidos muestran cómo se desenvuelven los usos del suelo, desde el punto de vista del desempeño económico del MFS (Adams et al, 2010;Bryan et al, 2011;Naidoo y Adamowicz, 2006;Nakajima et al, 2017). Así mismo, este tipo de análisis se reconoce esencial, ya que es la categoría más importante de costos en la que un país podría incurrir si reduce la tasa de pérdida de bosque.…”

Costs and Carbon Sequestration Assessment for REDD+ in Indonesia

“…Thus, our research provides a strong perspective on OC for local policymakers, who can contribute toward political decision making and the evaluation of the potential of fields. This is especially meaningful, given the need for a locally adaptive regulatory framework to fulfil various climate objectives [63][64][65][66][67].…”