Landowners Are Interested in Payment for the Ecosystem Services of Forestry: The Case of Korean Private Forests

Abstract

As no market or compensation scheme exists for the provision of ecosystem services for private forest owners, landowners have become more interested in timber and forest production or the conversion of forests into other lands. We tested a hypothesis on the willingness of landowners to accept payments for the ecosystem services of nature-friendly forestry. The conditional logit model analysis showed that restoring planted forests into natural forests and the extension of rotation ages negatively impact the utility of forest owners, who thus require financial compensation for such activities required for higher levels of public benefits. Forest owners are willing to participate in the conversion of artificial commercial forests into natural forests if they are compensated for as much as KRW 185,280 and 212,060/ha/year for extending the rotation age by 50 years, whereas no compensation is demanded for restoring half the land into natural forests, forest protection activities, and thinning. We suggest that the payment for an ecosystem services scheme should be designed based on the detailed information on forestry operations that enhance public goods and ecosystem services. Our results provide a basis for governments to design compensation protocols and the level of compensation for ecosystem services through the management of private forests.