Biotechnical portfolio management of mixed-species forests

Marielle Brunette (), Arnaud Dragicevic, Jonathan Lenglet, Alexandra Niedzwiedz, Vincent Badeau and Jean-Luc Dupouey
Additional contact information
Arnaud Dragicevic: LEF, AgroParisTech, INRA
Jonathan Lenglet: LEF, AgroParisTech, INRA
Vincent Badeau: EEF, Lorraine University, INRA
Jean-Luc Dupouey: EEF, Lorraine University, INRA

Journal of Bioeconomics, 2017, vol. 19, issue 2, No 3, 223-245

Abstract: Abstract Based upon the historical data—obtained from the French National Forest Inventory—on the tree species’ productivities, assimilated to be a measure of return on investment, as well as on their variances as sources of risk, we apply the portfolio selection theory in order to optimize the species distributions in France. We thus determine the optimal return-risk combinations of tree species and map them per administrative department. We also estimate the resistance of optimal portfolios using the species’ probabilities of presence. Our results show that greater weights in the optimal portfolios match with higher probabilities of presence, implying that foresters have incentives to invest in the most resilient species.

Keywords: Bioeconomics; Forest management; Portfolio management; Mixed-species forests; Climate change (search for similar items in EconPapers)
JEL-codes: G17 Q2 Q54 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10818-017-9247-x

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