Trade-offs between indigenous forest and exotic production forest in New Zealand

Patrick Walsh, Tarek Soliman and Adam Daigneault

Agricultural and Resource Economics Review, 2023, vol. 52, issue 2, 379-405

Abstract: With its varied landscape of hills and mountains, New Zealand has an abundance of marginal land on its slopes. This land is currently used in a variety of enterprises, such as pasture and farmland. However, marginal land is typically associated with higher rates of erosion, shallow topsoil, expensive fencing, and other issues like livestock deaths from falls. There is currently interest in deploying these marginal lands to different uses to align with several environmental and production-related goals. This paper contributes to the discussion on marginal land by exploring three different scenarios related to afforestation in the Manawatu catchment area. To analyze these scenarios, we bring together several complex and spatially explicit data sets which are linked using economic modeling tools and benefits transfer methods. The combination of these tools and data sets allows us to produce several important quantitative and qualitative outputs. Where possible, quantitative predictions are monetized, allowing a benefit-cost analysis of the proposed scenarios.

Date: 2023
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