Economics Of Forestry Research Articles

Effect of rosewood plantation chronosequence on soil attributes in Central Amazonia

Rosewood (Aniba rosaeodora Ducke) is an endangered Amazonian tree species that produces a commercially valuable essential oil, used mainly in cosmetics and fine fragrances production. The species can also be used in reforestation programs, which generate jobs and as a source of income and reduce the pressure of exploitation on natural rosewood populations. The objective of this study was to verify the influence of rosewood stands on physical and chemical soil attributes. This study was conducted at a rural farm in the Maués municipality, 350 km from Manaus, Amazonas State, Brazil. Samples were collected in five areas; 4-, 10- and 20-year-old rosewood stands, and 15- and 60-year-old secondary forests. The latter two served as control treatments, reflecting natural spontaneous succession conditions over time. Soil was sampled at 10 equidistant points within each area to measure physicochemical attributes, and at the center of each one, a soil profile was dug for description and classification of morphological characteristics. Based on the profile description, the soils were classified as Xanthic Hapludox. The results show that soil conditions under 20-year-old rosewood stand resembled those beneath the 60-year-old secondary forest, and likewise for the soil under the 10-year-old rosewood stand and the 15-year-old secondary forest. The soil bulk density ranged from 0.81 to 0.99 g cm−3 among all areas and no significant difference was found (P = 0.052). With exception to 4-year-old stand, the organic matter (2.68–5.87%) and carbon stock (18.57–31.71 Mg ha−1) did not differ significantly between stands and control treatments. For the soil macronutrients, nitrogen (0.10–0.22%), phosphorus (1.17–11.70 mg kg−1), calcium (0.03–0.31 mg kg−1) and magnesium (0.02–0.16 mg kg−1) were higher or equal in the rosewood stands in comparison to the two controls, while the potassium values (0.03–0.36 mg kg−1) were significantly higher in 60-year-old secondary forests only compared to the 10-year-old rosewood stands (P = 0.005). The soil beneath the 4-year-old rosewood stand, however, differed from the other four areas, having significantly higher natural clay content (>600 g kg−1) and higher topsoil chemical concentrations, associated with the more recent burning. This result represents the first step in addressing concern about sustainable soil use in rosewood forestry economics. Consequently, this kind of rosewood plantation can be recommended as an appropriate use of historically exploited areas, providing economic return from local biodiversity.

Uncertainty of Carbon Economy Using the Faustmann Model

Forest growth predictions are used to build expectations about the future economic performance of management decisions. Faustmann land expectation value (LEV) is a widely used criterion in forestry to evaluate a diversity of decision parameters, such as rotation age and thinning regimes. Most of the predictions and, consequently, expectations are based on emperical knowledge, assuming a steady state in climate and a deterministic forest growth approach. However, the climate may change to potentially different degrees in the coming decades, causing a dynamic and uncertain forest growth and carbon budget. Moreover, carbon economy in forestry, defined as opportunity cost of in situ carbon sequestration, can hardly be analysed using empirical models and calls for process-based forest biomass production models. Process-based models include numerous parameters and processes that embody some degree of uncertainty. The uncertainty of these parameters and climate state propagates over time to the final decision about carbon economy and optimal management solutions. Here we quantify this uncertainty using Bayesian inference and apply twelve different climate change scenarios to evaluate the forecasts of the process-based forest model 3-PG, to predict the growth of European beech (Fagus Sylvatica) in central european conditions as an example. The results show a strong influence of the model’s parameters uncertainty on the final decisions about timber based and carbon economy. The uncertainty triples if different climate change scenarios are applied as a source of deep uncertainty where no probability can be assigned to any scenario. To deal with deep uncertainty, a robust decision-making approach has been applied to find solutions with minimum regret or maximum value at risk regarding all scenarios. We conclude that communicating uncertainty is a fundamental issue for forestry economics under changing climate conditions, especially if carbon sequestration is an asset. The key message for designing global forest governance policy in the uncertain times of climate change will be the necessity to take into account both the uncertainty on the demand side, that is, socio-economic developments and regional population needs for forest ecosystem services such as wood, but also the uncertainty of the supply side and the inherent ecological uncertainties in predicting the forests’ growth, resources, and climatic conditions.

Analysis of the influencing factors on China’s forestry economic growth based on grey correlation model

Purpose The purpose of this paper is to analyze the influence of different factors on forestry production, with an aim to explore the degree of connection between forestry economic growth and influencing factors such as forestry investment, labor input, afforestation area, scientific and technologies progress, and the reform of property-rights regimes. Design/methodology/approach According to the data of China Forestry Statistical Yearbook from 1978 to 2017, this paper uses the grey correlation analysis to observe and analyze the factors influencing China’s forestry economics growth. Findings The results show that capital investment demonstrates the largest impact on the forestry output value, followed by property system, afforestation area, labor input and technologies progress. The correlation coefficients of the above factors are 0.874451654,0.85827468,0.835138412,0.832985604 and 0.825747493. This means that forestry capital investment plays a major role in contributing to forest economic growth; forest property system also plays a positive role in the growth of forestry economy. Originality/value This paper uses continuous data collected during 1978‒2017, which are quite extensive as compared to data used in the existing research, considering the influencing factors are comprehensive, especially the impact of property right system reform on forestry economic growth.

Large-scale forest-based biofuel production in the Nordic forest sector: Effects on the economics of forestry and forest industries

Forest-based biofuel is a promising solution to increase the share of renewable and sustainable energy in the transportation sector. Large-scale implementation of biofuel, however, not only affects the energy and transportation sectors, but also the forest sector value chains. This study uses a partial equilibrium forest sector model to quantify how large-scale production of forest-based biofuel would affect forest owners and forest industries in the Nordic countries. In a scenario assuming that forest-based biofuels cover a 0–40% share of the current Nordic road transportation and domestic aviation fuel consumption, the model results show that the sawmill industry increases their profit slightly due to increasing prices for their sawmilling residues. The traditional pulp and paper industries, on the other hand, see a reduced profit by up to 3.0 billion €, corresponding to 8% of their annual turnover, due to the increase in the price of pulpwood. Due to the increasing wood prices, the forest owners benefit significantly from biofuel investments. According to the model, their gross revenue from harvesting increases up to 31% without the need to increase the harvest more than 15%. The overall profit in the traditional forest sector is reduced by 400–600 million €. The decrease in profit is largest when the biofuel production volume covers 20%–30% of the liquid fuels in the Nordic countries. The reduction in overall profit is lower at 40% biofuel implementation, owing to the significant increase in revenue for the forest owner and the fact that the main reduction in pulp and paper industries happens at between 0% and 30% biofuel implementation. The study shows substantial economic spill-over effects from large-scale biofuel implementations to other parts of the forest sector.

Экономика лесного хозяйства на примере ЗАО «Екатеринбургские лесные машины»

Экономика лесного хозяйства на примере ЗАО «Екатеринбургские лесные машины»

1. Academia-Industry Collaboration in the Field of Forest Engineering (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

1. Academia-Industry Collaboration in the Field of Forest Engineering (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

Closing Remarks (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

Closing Remarks (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

第3報告 林業「経済学」による森林・林業政策の評価（林業経済学会2018年秋季大会 企画セッション：「林業経済学」を問い直し、未来を構想する）

第3報告 林業「経済学」による森林・林業政策の評価（林業経済学会2018年秋季大会 企画セッション：「林業経済学」を問い直し、未来を構想する）

Discussion (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

Discussion (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

4. The Genesis of the “Forestry” Concept and its Institutional Background (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

4. The Genesis of the “Forestry” Concept and its Institutional Background (Special Session at the 2018 Autumn Conference, the Japanese Forest Economic Society: Reconsidering “Forestry Economics” to Elaborate its Prospects)

Significant works of forestry research from the second half of 20th century in Slovakia

The contribution is published on the occasion of the 120th anniversary of the establishment of a forestry research organisation in Slovakia and the 100th anniversary of the establishment of the Czechoslovak Republic. We present important forestry research works, which were written by former (no longer alive) workers of the Forest Research Institute (FRI) in Zvolen in the second half of 20th century. The works (30 works in total) were divided into seven scientific areas: biology and silviculture (five works), forest protection (four works), forest management (five works), forestry mechanisation and harvest-production technologies (four works), forestry economics (five works), hunting (three works), natural environment (four works). First, summary information on selected works in a specific area was presented. Then, individual works from the specific scientific areas were characterised in more detail. Their value for the development of science and research as well as for the practical forestry was presented. Moreover, their importance for the present time was addressed. The paper presents only a very limited selection of a great number of works by FRI workers published in the second half of 20th century. The table with the information on the periods, when the individual significant researchers worked at FRI, is presented at the end of the paper.

Forest Accountancy Data Networks—A European Approach of Empirical Research, Its Achievements, and Potentials in Regard to Sustainable Multiple Use Forestry

A Forest Accountancy Data Network represents an intermediate approach of empirical economic research between surveys based on questionnaires on the one hand and case studies on the other, with time as a third dimension. Over the past decades, the few institutions operating such networks have accumulated a bulk of experience with this methodology and the possibilities for its adaptation to upcoming requirements. By summarizing and evaluating the potential of this methodology, we provide an up-to-date reference for designing empirical studies in forest economics at the enterprise level. Aspects of sustainability as well as the economics of multiple use forestry are specifically addressed. Forestry-specific extensions to existing agricultural networks could be a cost saving approach for investigating such crucial questions like the role of forestry for regional development and for the livelihood of farms. The study is based on an extended literature research which has been complemented by expert interviews.

From 1849 back to 1788: reconciling the Faustmann formula with the principle of maximum sustainable yield

In 1849, Martin Faustmann published a formula for determining the claim on an insurer if fallow woodland has been definitely destroyed. His evaluation is based on an even-aged plantation and a given logging time. The calculation has later been used to derive an allegedly optimal rotation period which nowadays predominates in forestry economics. In fact, the utilized objective function does not engender the superior harvesting strategy but the highest compensation for the damaged ground. However, Faustmann’s approach can be generalized in order to maximize the expected value of a timber company’s total assets comprising soil and existing stumpage. The best felling practice turns out to be the principle of maximum sustainable yield already decreed by Austria’s emperor Joseph II in 1788. As a result, the difference between profitability and efficiency is resolved.

Economics of size-structured forestry with carbon storage

We study the economics of carbon storage using a model that includes forest size structure and determines the choice between rotation forestry and continuous cover forestry. Optimal harvests may rely solely on thinning, implying infinite rotation and continuous cover forestry, or both thinning and clearcuts, implying finite rotation periods. Given several carbon prices and interest rates, we optimize the timing and intensity of thinnings along with the choice of management regime. In addition to the carbon storage in living trees, we include the carbon dynamics of dead trees and timber products. Forest growth is specified by an empirically validated transition matrix model for Norway spruce (Picea abies (L.) Karst.). The optimization problem is solved in its general dynamic form by applying bilevel optimization with gradient-based interior point methods and a genetic algorithm. Carbon pricing postpones thinnings, increases stand density by directing harvests to larger trees, and typically yields a regime shift from rotation forestry to continuous cover forestry. In continuous cover solutions, the steady-state harvesting interval and the diameter distribution of standing and harvested trees are sensitive to carbon price, implying that carbon pricing increases the sawlog ratio of timber yields. Additionally, we obtain relatively inexpensive stand-level marginal costs of carbon storage.

Current Trends and Future Prospects of Forest Policy and Forestry Economics Studies on Indonesia in Japan (Academic Article) (Special Themes for Commemorating the 70th Anniversary of the Foundation of Forest Economic Research Institute: Forest Economics and Forest Policy Studies for the Coming Future)

Current Trends and Future Prospects of Forest Policy and Forestry Economics Studies on Indonesia in Japan (Academic Article) (Special Themes for Commemorating the 70th Anniversary of the Foundation of Forest Economic Research Institute: Forest Economics and Forest Policy Studies for the Coming Future)

1 あの頃私の主張したもの（シリーズ 戦後林業経済学の回想）

1 あの頃私の主張したもの（シリーズ 戦後林業経済学の回想）

2 林業経済研究から森林文化研究へ（シリーズ 戦後林業経済学の回想）

2 林業経済研究から森林文化研究へ（シリーズ 戦後林業経済学の回想）

Decomposition of Latent Class Regression Model Estimates: An Application to Hunting Land Lease Prices

Prior studies in agricultural and forestry economics that employ Blinder decomposition methods assume that each of the samples compared is characterized by a single regression function. The present study is the first to relax this assumption in order to allow for the existence of latent classes represented by different regression functions hidden within each sample. More specifically, we introduce the use of a latent-class or finite-mixture model to serve as a basis for Blinder-Oaxaca decompositions. Our method is applied to hunting land lease data from Mississippi (U.S.), and our results indicate that both the east and west regions of this state are best characterized by three regression functions, resulting in a total of fifteen possible pairwise decompositions. This finding allows us to decompose differences between two different east regimes or two different west regimes, in addition to the usual east-west decompositions. Our results reveal that a traditional prior analysis of these data characterizes (fails to characterize) about 35 percent (65 percent) of the sample. Our latent- class approach to decompositions can be applied to any circumstance where decompositions are needed and where model specification concerns loom large.

On the economics of continuous cover forestry

On the economics of continuous cover forestry

On a forest as a commodity and on commodification in the discipline of forestry

This essay revolves around two dates separated by a decade: a retrospective look based on Samuelson (1976), and a prospective one that relies on Mitra-Wan (1985–1986). It concerns a tension between two communities: to understand the basis of this dissonance, and to open lines of communication that seek to dispel it. More specifically, it relies on two frameworks (Walrasian general equilibrium theory, as in Arrow-Debreu-McKenzie-Uzawa-Gale-Nikaido-Kuhn and others, and the Ramseyian theory of optimal growth, as in Samuelson-Solow-Cass-Koopmans-Uzawa-Srinivasan and others), formalized and continually refined in the last half of the 20th century to deal with interaction and with time, both essential considerations in any kind of economics of forestry. It also gives prominence to the Muir- Pinchot controversy at the very beginning of the 20th century, and thereby underscores its relevance to current ongoing tensions and anxieties regarding issues of sustainability and global-warming. From a purely analytical point of view, it alludes in passing to the potential relevance to forestry economics of mean field theories in physics, and of subgame-perfect equilibria in the theory of non-cooperative games.