Economics of harvesting boreal uneven-aged mixed-species forests

Rämö, Janne; Tahvonen, Olli

doi:10.1139/cjfr-2014-0552

Cited by 39 publications

(51 citation statements)

References 28 publications

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“…Thomson 1991;Knoke et al 2005;Rämö and Tahvonen 2015). Therefore, this research supports the view that the benefits of mixed forest management cover more than only intrinsic values and biodiversity.…”

Section: Ecosystemsupporting

confidence: 76%

A service-dominant perspective on payments for ecosystem service offerings

Matthies¹

2016

Diss. For.

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The ecosystem service (ES) approach is a means of evaluating service value flows from ecosystems to humans for their wellbeing. The approach suggests that ecosystem functions are divided into categories according to the benefits derived and utilized by beneficiaries. The ES approach has become a tool for public and private decision-makers, driven by the need to more accurately incorporate environmental externalities into the value creation processes of economic actors.This research addresses two knowledge gaps within the ES literature. First, a service-centric approach to ES offerings is lacking, resulting in misuse of the appropriate concepts and terms when discussing their role in value networks and value creation. Second, there is limited available knowledge about how to efficiently internalize ES offerings within value networks.In the first article, a service-dominant value creation (SVC) framework, with supporting terms and concepts, was developed to guide interdisciplinary discussions about the role of ES offerings within value creation processes. The term value-in-impact was proposed as a means for discussing the trade-offs and impacts concerning ES offerings within those processes.The subsequent three articles addressed the following design aspects of Payment for Ecosystem Service (PES) schemes: (1) sensitivity to parameter inputs, (2) price volatility impacts on service providers, and (3) behavioural economic contributions. Consideration for trade-offs among ES offerings, and between ES offerings and economic objectives were also incorporated. The results indicated that the holistic accounting of ES indicators, to determine the optimal species mixtures, and uncorrelated ES price interactions, to determine the optimal allocation of forest for conservation, led to ecological and financial diversification benefits for service providers. Nudging service providers also led to more socially efficient ES provisioning. In each case, the proposed Ecosystem Service Expectation Value (ESEV) was used to more accurately describe the perpetual provisioning of multiple ES offerings on forestland.

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Section: Ecosystemsupporting

confidence: 76%

A service-dominant perspective on payments for ecosystem service offerings

Matthies¹

2016

Diss. For.

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“…These studies (cf. Rämö and Tahvonen 2015) suggest the inclusion of multiple tree species in future studies on CCF with optimal harvest timing and on the optimal choice between the management regimes. In Tahvonen and Kallio (2006), it is shown that wood price stochasticity and risk aversion calls for diversifying the age structure in a multiple stand even-aged model.…”

Section: Discussionmentioning

confidence: 99%

Optimality of continuous cover vs. clear-cut regimes in managing forest resources

Tahvonen

Rämö

2016

Can. J. For. Res.

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Optimization models on continuous cover forestry are complicated and typically incompatible with rotation models. This dichotomy is theoretically unsatisfactory and makes the choice between clearcuts and continuous cover forestry vague. We present a theoretically sound and empirically detailed generalized setup with an optimal clear-cut regime (or even-aged management) and optimal continuous cover regime (or uneven-aged management) as special cases. It includes a size-structured growth model, variable and fixed harvesting costs, and allows for the completely flexible optimization of harvest timing in both regimes. Flexible harvest timing becomes essential when optimizing the transition from clear-cut regimes toward continuous cover forestry. The model is applied to Norway spruce (Picea abies (L.) Karst.) and solved as a dynamic mixed-integer problem. Low or moderate site productivity, an interest rate above 2%, and a high artificial regeneration cost support the optimality of continuous cover forestry. In its most general form, the optimal clear-cut regime does not exist when the continuous cover regime is globally optimal, and when it exists, the rotation period lengthens with interest rate. The optimal choice between forest management regimes may depend on the initial stand state and whether the naturally regenerated seedlings are utilized in solutions with clearcuts. Maximizing sustainable yield favors clearcuts.Key words: continuous cover forestry, uneven-aged forestry, even-aged forestry, optimal harvesting, optimal rotation, forest economics. Résumé :Les modèles d'optimisation pour la foresterie en couvert continu sont compliqués et généralement incompatibles avec les modèles de révolution. Cette dichotomie est théoriquement insatisfaisante et source de confusion dans le choix entre les coupes à blanc et la foresterie en couvert continu. Nous présentons un cadre général ayant de solides fondements théoriques tout en étant empiriquement détaillé dans lequel les solutions optimales pour la révolution forestière et le couvert continu sont traitées comme des cas particuliers. Il inclut un modèle de croissance structuré en fonction de la taille des arbres, des coûts de récolte variables et fixes, et permet une optimisation totalement flexible des périodes de récolte pour les deux régimes. Des périodes de récolte flexibles deviennent essentielles pour optimiser la transition des régimes de coupe à blanc vers la foresterie en couvert continu. Le modèle est appliqué à l'épicéa commun (Picea abies (L.) Karst.) et solutionné comme un problème dynamique partiellement en nombres entiers. L'optimalité de la foresterie en couvert continue est soutenue par une productivité de la station faible ou modérée, un taux d'intérêt supérieur à 2 % et le coût de la régénération artificielle. Dans sa forme la plus générale, le régime optimal de coupe à blanc n'existe pas lorsque le régime en couvert continu est globalement optimal et, lorsqu'il existe, la période de révolution s'allonge avec le taux d'intérêt. Le choix op...

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“…It is also possible to maintain a continuous cover of plants [4][5][6][7][8]. A few investigations indicate that continuous-cover forestry has particular benefits [9][10][11][12][13][14][15][16][17]. As a special case of the continuous-cover process, a stationary system may appear.…”

Section: Introductionmentioning

confidence: 99%

Stationary Forestry with Human Interference

Kärenlampi

2018

Sustainability

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Here, we present stationarity criteria for forest stands and establish ecological embodiments using an empirical stand development model. We introduced human interference in terms of diameter-limit cutting. Financial sustainability was investigated as a function of the cutting limit diameter. It was found that nonoperative capitalization along with its appreciation rate dictates the sustainability of management practices. In the absence of nonoperative capitalization, stationary forestry produces high capital return rates at a rather small volume of growing trees. In the case of large but constant nonoperative capitalization, a large operative capitalization resulting in a large harvesting yield provides the best capital returns. A high nonoperative appreciation rate requires a small volume of growing trees.corresponding to the financial return of the bound capital. However, when only harvesting dying trees, the volumetric yield is small. Introducing diameter-limit cutting, in addition to removal of dying trees, produces another stationary system, now with human interference. The effect of capitalization on the financial return is investigated with a variety of cutting-limit diameters.Nonoperative capitalization due to excess demand for real estate, recreational values, speculation for future real estate values, etc., may well evolve over time. In the final section of this paper, we discuss the effect of the eventual appreciation of the nonoperative capitalization on the financial return in stationary forestry. Methods Stationary Stand of Forest TreesA stationary structure requires stationary distributions of population properties. Let us define stationary conditions on the basis of three processes of diameter ingrowth, diameter outgrowth, and mortality. The process of outgrowth obviously must be related to ingrowth into another group. The size distribution of trees can be stationary only if the number of individuals involved in the three processes sums up to zero. Consequently, a stationarity condition is Supplementary Materials: The following are available online at

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Economics of harvesting boreal uneven-aged mixed-species forests

Cited by 39 publications

References 28 publications

A service-dominant perspective on payments for ecosystem service offerings

A service-dominant perspective on payments for ecosystem service offerings

Optimality of continuous cover vs. clear-cut regimes in managing forest resources

Stationary Forestry with Human Interference

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