Modelling the Choice Between Multiple-Use vs. Specialised Forest Management and its Impact on Forest Management Costs

Serge Garcia, Claudio Petucco, Bo Thorsen and Suzanne Elizabeth Vedel
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Suzanne Elizabeth Vedel: ITU - IT University of Copenhagen

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Abstract: Forests provide ecosystem services, including timber production. In some cases, private forest owners perform management actions in order to enhance the provision of such services, or they may be encouraged by public policies and payments. This paper focuses specifically on the decision to set forest land aside for biodiversity conservation, as part of the more general question of the efficiency of multiple-use vs. specialised management of forest lands. We propose an econometric analysis to identify factors in the set-aside choice and measure the impact of this decision on forest management costs. The results show that the set-aside choice depends on the landowners' income and motivations related to forest amenities. The choice of specialised management, as reflected in the set-aside decision, has a significant and positive impact on the intensity of management in the remainder of the forest and on management costs. From a policy implications point of view, these results suggest that instruments such as forest certification, subsidies and reverse auctions for conservation will be most likely to attract the interest of those forest owners with personal motivations and forest properties that offer both benefit and cost advantages in opting for such specialised management strategies.

Keywords: Forest; Multiple-use vs; Specialised management; Household production model; Stochastic cost frontier; Corner solution; Recursive mixed system (search for similar items in EconPapers)
Date: 2021-08
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Published in Environmental Modeling & Assessment, 2021, 26 (4), pp.591-608. ⟨10.1007/s10666-021-09774-6⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03377071

DOI: 10.1007/s10666-021-09774-6

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