Influences of nonindustrial private forest landowners’ management priorities on the timber harvest decision—A case study in France

Petucco, Claudio; Abildtrup, Jens; Stenger, Anne

doi:10.1016/j.jfe.2015.07.001

Cited by 23 publications

(16 citation statements)

References 29 publications

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“…From this sample, 107 participants met the stated requirement and had responses which were free of technical errors (e.g., missing entries). Altogether, a final participation quota of 7% was achieved, which is comparable to other studies that contacted participants through associations (e.g., Petucco et al, 2015).…”

Section: Experimental Designsupporting

confidence: 75%

“…Furthermore, as an extension of our experiment, other economic aspects should be included in the experiment and the corresponding survey. For instance, we suggest to conduct further economic experiments while controlling on the financial resources of decision makers, the dependence from forest income and the utility from amenities from the perspective of multifunctional forest management (e.g., Beach et al, 2005;Petucco et al, 2015). Regarding the incorporation of risk, conclusions from our results are limited in the perspective of the legal framework.…”

Section: Discussionmentioning

confidence: 91%

“…In this context, we suggest to integrate the real options theory in educational programs, since it reveals distinctly higher final values (financial profit) of the forest harvest than the FPO theorem, especially when facing increased fluctuations of gross margins (e.g., due to climate change). Furthermore, forest enterprises which want to improve their profit should involve employees with a high economic understanding when it comes to forest planning or, alternatively, integrate external economic knowledge through consultants, as recommended by Petucco et al (2015).…”

Section: Discussionmentioning

confidence: 99%

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Faustmann vs. real options theory – An experimental investigation of foresters’ harvesting decisions

Sauter

Mußhoff

Möhring

et al. 2016

JFE

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JEL classification: Q23 C93 D22 Q28 Keywords: Experimental economics Forest harvesting decision Real options approach Faustmann-Pressler-Ohlin theorem Risk attitude Forest management Policy support a b s t r a c tAmong the most complex decisions in forestry is the decision of when to harvest a stand. Many investment theories have been established and adjusted to maximize profit, yet limited knowledge is available regarding the predictive power of theories. Understanding foresters' harvesting behavior, however, is important for forest management and policy support. Thus, the question arises as to what extent risky harvesting decisions comply with economic theories. Therefore, we conduct an incentive-based economic experiment with 107 forestry decision makers in order to analyze this research question. This approach is well-established in the field of behavioral economics since it has the advantage of analyzing certain economic parameters isolated from further aspects of the decision situation. We use the Faustmann-Pressler-Ohlin theorem and a real options approach as normative benchmarks. The present study provides evidence that none of the examined theories fully comply with the observed behavior. However, the harvesting behavior coincides significantly more with the real options theory than with the Faustmann-Pressler-Ohlin theorem. It can thus be stated that a higher degree of education leads to decisions that are more in accordance with the real options theory.

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Section: Experimental Designsupporting

confidence: 75%

Section: Discussionmentioning

confidence: 91%

Section: Discussionmentioning

confidence: 99%

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Faustmann vs. real options theory – An experimental investigation of foresters’ harvesting decisions

Sauter

Mußhoff

Möhring

et al. 2016

JFE

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“…Occasionally and if the adaptive capacity of a forest, e.g., genetic diversity and spontaneous adaptation, are so high that they become less vulnerable to climate change and impacts, conservation may be an adaptation alternative. However, this strategy may suffer from under-provisioning of forest goods and services directly used by surrounding communities, e.g., local timber industry (Petucco et al 2015) as well as from increasing vulnerability of forests to disturbances, e.g., fire (San-Miguel-Ayanz et al 2013). Therefore, in the following, we describe the potential expected outcomes of altering BAU to different alternative adaptation strategies, i.e., reactive, active, and robust adaptation.…”

Section: Forest Management Strategies To Deal With Climate Changementioning

confidence: 99%

“…Risk-seeking decisionmakers may stick to the BAU strategy and avoid adaptation in the hope of either non-realization of climate change at all or a climate change realization with low impacts on their forests. However, forest decision-makers are mostly risk-averse (Sauter et al 2016;Petucco et al 2015) and would select an adaptation strategy. Selection of the most suitable adaptation strategy is dependent on the costs and benefits estimated from the implementation of adaptation.…”

Section: Introductionmentioning

confidence: 99%

Pertinence of reactive, active, and robust adaptation strategies in forest management under climate change

Yousefpour

Augustynczik

Hanewinkel

2017

Annals of Forest Science

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Are non-industrial private forest owners willing to deliver regulation ecosystem services? Insights from an alpine case

et al. 2019

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As non-industrial private forest owners own a large share of forests in Europe, their management choices can largely affect the delivery of forest ecosystem services of different types: provisional, regulation and cultural. The literature is rich in studies exploring the delivery of both provisional services (timber or wood products) and cultural ones (recreation or amenity). However, fewer researches have addressed the delivery of regulation services like regulation of climate, carbon sequestration or preservation of habitats. The paper intends to contribute to this scarce literature with a Southern European case study. It analyses whether non-industrial private forest owners from an Italian alpine region would be willing to deliver additional (i.e. beyond legal requirements) quantities of regulation forest ecosystem services, whether they would do so with or without payment, and what affects such willingness. Three services are analysed: habitat improvement, soil conservation and carbon sequestration. Three multinomial logit models are estimated on a sample of 106 non-industrial forest owners. The results show, among others, that the willingness to deliver regulation forest ecosystem services is enhanced when the service impacts also on the property scale: this result concurs with the literature which shows that non-industrial private forest owners very often maximise not only their profit but also their overall utility by considering the self-consumption of services. The paper concludes by providing indications for targeting and tailoring active forest management policies focused on non-industrial forest owners of Italian alpine regions.

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Influences of nonindustrial private forest landowners’ management priorities on the timber harvest decision—A case study in France

Cited by 23 publications

References 29 publications

Faustmann vs. real options theory – An experimental investigation of foresters’ harvesting decisions

Faustmann vs. real options theory – An experimental investigation of foresters’ harvesting decisions

Pertinence of reactive, active, and robust adaptation strategies in forest management under climate change

Are non-industrial private forest owners willing to deliver regulation ecosystem services? Insights from an alpine case

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