Profit-efficiency analysis of forest ecosystem services in the southeastern US

Abstract

Technical, allocative, and profit efficiency of longleaf pine (Pinus palustris. Mill) forests in the southeastern United States, producing ecosystem services such as timber, tree biodiversity, water, and carbon sequestration, were estimated. This study employed a non-parametric two-stage approach involving data envelopment analysis (DEA) and robust linear regression. Utilizing data from the Forest Inventory and Analysis (FIA) program spanning 1977–2015 and covering 2,282 forest plots, most longleaf pine forest plots were technically and profit inefficient in ecosystem service production. The inefficiency in profit appeared more attributable to allocative rather than technical inefficiency. Furthermore, the impact of various exogenous variables on inefficiency scores was assessed through robust linear regression. The findings suggested that forest disturbances under private ownership could reduce technical inefficiency. Surprisingly, contrary to stochastic frontier analysis (SFA) results, the robust regression model, considering geographical factors, disturbance, ownership, management, and time in the presence of outliers/influential observations, indicated that disturbances often increased technical inefficiency. Therefore, forest management strategies aiming to mimic or replicate the effects of forest disturbances might compromise the efficiency of ecosystem service provision.