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Economics of boreal conifer species in continuous cover and rotation forestry

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  • Parkatti, Vesa-Pekka
  • Assmuth, Aino
  • Rämö, Janne
  • Tahvonen, Olli

Abstract

We study the management regimes of size-structured boreal Norway spruce (Picea abies (L.) Karst.) and Scots pine (Pinus sylvestric L.) stands. Our aim is to compare the economic profitability of continuous cover and rotation forestry and to study the hypothesis that continuous cover forestry is more favourable for Norway spruce compared to Scots pine. The optimization is carried out with two different empirical growth models by using a theoretically sound economic optimization model with optimal timing of thinning and the choice of management regimes. The model is solved as a tri-level problem, where rotation period choice is the highest level, thinning timing is the middle-level and thinning intensity the lowest-level problem. Independently of the ecological models, continuous cover forestry is found to be less favourable for Scots pine compared to Norway spruce. However, the extent of this favourability and the characteristics of the optimal solutions strongly depend on the ecological model used. Also, optimal continuous cover solutions for Scots pine have very low stand densities and many of the economically optimal solutions violate the new Finnish Forest Act of 2014.

Suggested Citation

  • Parkatti, Vesa-Pekka & Assmuth, Aino & Rämö, Janne & Tahvonen, Olli, 2019. "Economics of boreal conifer species in continuous cover and rotation forestry," Forest Policy and Economics, Elsevier, vol. 100(C), pages 55-67.
    • Handle: RePEc:eee:forpol:v:100:y:2019:i:c:p:55-67
    DOI: 10.1016/j.forpol.2018.11.003
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    References listed on IDEAS

    as
    1. Olli Tahvonen, 2015. "Economics of Naturally Regenerating, Heterogeneous Forests," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(2), pages 309-337.
    2. Janne Rämö & Olli Tahvonen, 2017. "Optimizing the Harvest Timing in Continuous Cover Forestry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 853-868, August.
    3. Benoît Colson & Patrice Marcotte & Gilles Savard, 2007. "An overview of bilevel optimization," Annals of Operations Research, Springer, vol. 153(1), pages 235-256, September.
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    Citations

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    Cited by:

    1. Petri P. Kärenlampi, 2021. "Diversity of Carbon Storage Economics in Fertile Boreal Spruce ( Picea Abies ) Estates," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    2. Parkatti, Vesa-Pekka & Tahvonen, Olli, 2021. "Economics of multifunctional forestry in the Sámi people homeland region," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    3. Juutinen, Artti & Tolvanen, Anne & Koskela, Terhi, 2020. "Forest owners' future intentions for forest management," Forest Policy and Economics, Elsevier, vol. 118(C).
    4. Petri P. Kärenlampi, 2021. "Capital Return Rate and Carbon Storage on Forest Estates of Three Boreal Tree Species," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    5. Fakhry, Ramy & Hassini, Elkafi & Ezzeldin, Mohamed & El-Dakhakhni, Wael, 2022. "Tri-level mixed-binary linear programming: Solution approaches and application in defending critical infrastructure," European Journal of Operational Research, Elsevier, vol. 298(3), pages 1114-1131.
    6. Aydin Teymourifar & Maria A. M. Trindade, 2023. "A Framework to Design and Evaluate Green Contract Mechanisms for Forestry Supply Chains," Sustainability, MDPI, vol. 15(9), pages 1-13, May.

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    More about this item

    Keywords

    Continuous cover forestry; Norway spruce; Optimal rotation; Scots pine;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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