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.
Show moreOrganizations and authors
Publication type
Publication format
Article
Parent publication type
Journal
Article type
Original article
Audience
ScientificPeer-reviewed
Peer-ReviewedMINEDU's publication type classification code
A1 Journal article (refereed), original researchPublication channel information
Parent publication name
Publisher
Volume
49
Issue
10
Pages
1219-1232
ISSN
Publication forum
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