Negotiating Multifunctional Forest Management in a Bioeconomic Supply Chain

Jean-Christophe Pereau, Arnaud Dragicevic () and Serge Garcia ()
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Jean-Christophe Pereau: BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Arnaud Dragicevic: Chulalongkorn University [Bangkok]
Serge Garcia: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This research explores the negotiation over multifunctionality in forest management, examining strategic interactions between foresters and first-transformation agents within the forest-based supply chain. Central to the study is a novel Nash-type bargaining model that provides a structured framework for these negotiations, focusing on both economic viability and ecological sustainability. The model incorporates a variational inequality approach within a multicriteria decision-making framework. Insights are validated through numerical simulations using a neural network-based deep learning algorithm. The simulations reveal that an equitable distribution of bargaining power among stakeholders promotes the coexistence of conventional and multifunctional forestry, leading to an economic decoupling between sustainable timber and wood production and its environmental impacts on biodiversity. Additionally, the findings indicate that the success of multifunctional forestry heavily relies on state aid, provided through Payments for Environmental Services, underscoring that environmental awareness alone is insufficient to significantly reduce biodiversity loss within the forest-based supply chain.

Keywords: Forest-wood sector; Bioeconomy; Supply chain; Biodiversity loss; Nash bargaining; PES; Network economics; Variational inequality; Machine learning (search for similar items in EconPapers)
Date: 2025-09-29
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-05287521v1
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