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Economics of mixed-species forestry with ecosystem services

Year of publication

2019

Authors

Tahvonen, Olli; Ramo, Janne; Monkkonen, Mikko

Abstract

The Faustmann-Hartman setup is widely established for specifying the economics of forest values besides timber, but it is criticized as restrictive for capturing diversity values. We show that extending the model to cover diversity attributes, i.e., mixed species and internal heterogeneity within species, is not enough to overcome these restrictions. Additionally, it is necessary to extend forest harvesting regimes to cover thinning, continuous cover forestry, and the management of commercially useless trees. Restrictions in the Faustmann-Hartman setup are first shown analytically with optimized thinning but without tree size structures. The empirical significance of these findings is shown by a model that includes four tree species, tree size structures, an extended set of forest management activities, a detailed description of harvesting costs, and a measure for stand diversity as a key factor behind ecosystem services. We show how an optimal harvesting regime, net revenues, wood output, and stand diversity depend on model flexibility, economic parameters, and the valuation of ecosystem services. In a setup allowing flexible management regimes, the costs of reaching a specified level of ecosystem services are negligible compared with those of the Faustmann-Hartman specification.
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Organizations and authors

University of Helsinki

Ramo Janne

Tahvonen Olli

Publication type

Publication format

Article

Parent publication type

Journal

Article type

Original article

Audience

Scientific

Peer-reviewed

Peer-Reviewed

MINEDU's publication type classification code

A1 Journal article (refereed), original research

Publication channel information

Volume

49

Issue

10

Pages

1219-1232

​Publication forum

53015

​Publication forum level

3

Open access

Open access in the publisher’s service

Yes

Open access of publication channel

Fully open publication channel

Self-archived

No

Other information

Fields of science

Ecology, evolutionary biology; Forestry; Economics

Keywords

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Publication country

Canada

Internationality of the publisher

International

Language

English

International co-publication

No

Co-publication with a company

No

DOI

10.1139/cjfr-2018-0514

The publication is included in the Ministry of Education and Culture’s Publication data collection

Yes