Abstract
Wildfires caused by climate change in Europe have numerous and long-lasting ecological, economic, and social implications for sustainable development (natural environment, economy, and society as a whole). Artificial revitalization of sessile oak forests destroyed by wildfires in Serbia is feasible, but it is quite expensive compared to the spontaneous regeneration. Cost-benefit analysis (an economic approach to comparing and estimating the benefits and shortcomings of a particular business plan, i.e., an investment project by analyzing its costs and benefits) is aimed at finding the best solutions and making the best decisions about the desirability of a project. It was concluded that the investment in the restitution of sessile oak forests could be profitable only if it was based on wood production. Wood production may bear slightly higher interest rates compared to previous estimates which ranged mainly around 3%. This primarily applies to better site classes, while poor quality sites require lower rates. At lower discount rates, it takes more time to reach the break-even point, while the period of time needed to reach the break-even point shortens with higher discount rates. The length of the production cycle plays an important role in determining the investment profitability, especially regarding the relationship between the length of the production cycle and production targets (the type and the quality of wood assortments produced). According to the results of the analysis of intangible benefits and costs, the costs outweigh the benefits, which makes the restitution of sessile oak forests destroyed by fires unacceptable.
Highlights
Forest ecosystems are open systems with ecologic, economic, and social functions (Altun et al, 2016)
Wood production may bear slightly higher interest rates compared to previous estimates which ranged mainly around 3%
The investment in the restitution of sessile oak forests destroyed by wildfires can be profitable only if it is based on wood production and different discount rates can be applied depending on the site class
Summary
Forest ecosystems are open systems with ecologic, economic, and social functions (Altun et al, 2016). From an economic point of view, the global significance of forests is reflected in the fact that more than 1.6 billion people are directly dependent on them, including more than ten million people employed in the forestry. Received in revised form: 29 Mar 2021. From Volume 49, Issue 1, 2021, Notulae Botanicae Horti Agrobotanici Cluj-Napoca journal uses article numbers in place of the traditional method of continuous pagination through the volume. The journal will continue to appear quarterly, as before, with four annual numbers
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