IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v167y2024ics1389934124001540.html
   My bibliography  Save this article

The influence of the competition amongst pressure groups to provide ecosystem services on the optimal rotation length of forest stands

Author

Listed:
  • Deegen, Peter
  • Halbritter, Andreas

Abstract

A significant segment of the variety of forest ecosystem services is neither demanded nor supplied through market exchange, but is provided essentially through political processes. In this paper, we present an economic analysis of forest stand management under consideration of politically provided ecosystem services. In this, competition between pressure groups seeking to grasp privileges plays an important role. We extend the Hartman model with elements of the pressure group models. We incorporate the amount of the reward derived from the political contest, the effectiveness factor of the forest owner in the political competition and the lobbying investment made by the forest owner. We show that the competition amongst pressure groups has a profound impact on the optimal rotation length compared to the classical solution by Faustmann. We discuss, how the competition amongst pressure groups shapes the optimal rotation length when forest stand management provides multiple forest ecosystem services. We also address the levels of the reward derived from the political contest and the effectiveness factor in the context of the urban–rural interface.

Suggested Citation

  • Deegen, Peter & Halbritter, Andreas, 2024. "The influence of the competition amongst pressure groups to provide ecosystem services on the optimal rotation length of forest stands," Forest Policy and Economics, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:forpol:v:167:y:2024:i:c:s1389934124001540
    DOI: 10.1016/j.forpol.2024.103300
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934124001540
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2024.103300?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gregory S. Amacher & Markku Ollikainen & Erkki A. Koskela, 2009. "Economics of Forest Resources," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012480, December.
    2. Halbritter, Andreas & Deegen, Peter, 2015. "A combined economic analysis of optimal planting density, thinning and rotation for an even-aged forest stand," Forest Policy and Economics, Elsevier, vol. 51(C), pages 38-46.
    3. Kenny, Michael & Luca, Davide, 2021. "The urban-rural polarisation of political disenchantment: an investigation of social and political attitudes in 30 European countries," LSE Research Online Documents on Economics 112683, London School of Economics and Political Science, LSE Library.
    4. Grammatikopoulou, Ioanna & Vačkářová, Davina, 2021. "The value of forest ecosystem services: A meta-analysis at the European scale and application to national ecosystem accounting," Ecosystem Services, Elsevier, vol. 48(C).
    5. 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).
    6. David J. Hebert & Richard E. Wagner, 2018. "Political parties: insights from a tri-planar model of political economy," Constitutional Political Economy, Springer, vol. 29(3), pages 253-267, September.
    7. Luke Petach, 2024. "The timber wars: the endangered species act, the northwest forest plan, and the political economy of timber management in the Pacific northwest," Public Choice, Springer, vol. 198(1), pages 209-226, January.
    8. Michael Kenny & Davide Luca, 2021. "The urban-rural polarisation of political disenchantment: an investigation of social and political attitudes in 30 European countries," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(3), pages 565-582.
    9. Loisel, Patrice & Elyakime, Bernard, 2018. "How to manage a small-scale multi-use forest?," Journal of Forest Economics, Elsevier, vol. 32(C), pages 13-17.
    10. Göhrs, Max & Krott, Max & Hubo, Christiane, 2022. "Political parties as allies for the forestry sector: A case study from Germany," Forest Policy and Economics, Elsevier, vol. 138(C).
    11. Jurgen Backhaus, 1978. "Pareto on public choice," Public Choice, Springer, vol. 33(1), pages 5-17, March.
    12. Mark Fey, 2008. "Rent-seeking contests with incomplete information," Public Choice, Springer, vol. 135(3), pages 225-236, June.
    13. Hartman, Richard, 1976. "The Harvesting Decision When a Standing Forest Has Value," Economic Inquiry, Western Economic Association International, vol. 14(1), pages 52-58, March.
    14. Kolo, Horst & Kindu, Mengistie & Knoke, Thomas, 2020. "Optimizing forest management for timber production, carbon sequestration and groundwater recharge," Ecosystem Services, Elsevier, vol. 44(C).
    15. Daniel T. Lichter & James P. Ziliak, 2017. "The Rural-Urban Interface: New Patterns of Spatial Interdependence and Inequality in America," The ANNALS of the American Academy of Political and Social Science, , vol. 672(1), pages 6-25, July.
    16. R. Rawls & David Laband, 2004. "A Public Choice Analysis of Endangered Species Listings," Public Choice, Springer, vol. 121(3), pages 263-277, December.
    17. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moeller, Jonas C. & Susaeta, Andres & Deegen, Peter & Sharma, Ajay, 2024. "Profitability analysis of southern plantations through timber alone or timber and carbon integration in pine-sweetgum mixes," Forest Policy and Economics, Elsevier, vol. 161(C).
    2. Morag F. Macpherson & Adam Kleczkowski & John R. Healey & Nick Hanley, 2018. "The Effects of Disease on Optimal Forest Rotation: A Generalisable Analytical Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 565-588, July.
    3. Deegen, Peter, 2019. "The political economy of biodiversity in representative democracy: Between the expressive and the instrumental domain," Forest Policy and Economics, Elsevier, vol. 107(C), pages 1-1.
    4. McNeil, Andrew & Luca, Davide & Lee, Neil, 2023. "The long shadow of local decline: Birthplace economic adversity and long-term individual outcomes in the UK," Journal of Urban Economics, Elsevier, vol. 136(C).
    5. Khanal, Puskar N. & Grebner, Donald L. & Munn, Ian A. & Grado, Stephen C. & Grala, Robert K. & Henderson, James E., 2017. "Evaluating non-industrial private forest landowner willingness to manage for forest carbon sequestration in the southern United States," Forest Policy and Economics, Elsevier, vol. 75(C), pages 112-119.
    6. Morag F. Macpherson & Adam Kleczkowski & John Healey & Nick Hanley, 2015. "When to harvest? The effect of disease on optimal forest rotation," Discussion Papers in Environment and Development Economics 2015-19, University of St. Andrews, School of Geography and Sustainable Development.
    7. Xu, Ying & Amacher, Gregory S. & Sullivan, Jay, 2016. "Optimal forest management with sequential disturbances," Journal of Forest Economics, Elsevier, vol. 24(C), pages 106-122.
    8. Rørstad, Per Kristian, 2022. "Payment for CO2 sequestration affects the Faustmann rotation period in Norway more than albedo payment does," Ecological Economics, Elsevier, vol. 199(C).
    9. Andrés Rodríguez-Pose & Lewis Dijkstra & Hugo Poelman, 2024. "The Geography of EU Discontent and the Regional Development Trap," Economic Geography, Taylor & Francis Journals, vol. 100(3), pages 213-245, May.
    10. Creamer, Selmin F. & Genz, Alan & Blatner, Keith A., 2012. "The Effect of Fire Risk on the Critical Harvesting Times for Pacific Northwest Douglas-Fir When Carbon Price Is Stochastic," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-14, December.
    11. Price, Colin & Willis, Rob, 2024. "Declining discount rate, rising non-timber benefits and the optimal sequence of rotations," Forest Policy and Economics, Elsevier, vol. 161(C).
    12. Maria Greve & Michael Fritsch & Michael Wyrwich, 2023. "Long‐term decline of regions and the rise of populism: The case of Germany," Journal of Regional Science, Wiley Blackwell, vol. 63(2), pages 409-445, March.
    13. Miettinen, Jenni & Ollikainen, Markku & Nieminen, Tiina M. & Ukonmaanaho, Liisa & Laurén, Ari & Hynynen, Jari & Lehtonen, Mika & Valsta, Lauri, 2014. "Whole-tree harvesting with stump removal versus stem-only harvesting in peatlands when water quality, biodiversity conservation and climate change mitigation matter," Forest Policy and Economics, Elsevier, vol. 47(C), pages 25-35.
    14. Marielle Brunette & Stephane Couture, 2018. "Risk management activities of a non-industrial privateforest owner with a bivariate utility function," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 281-302.
    15. Richard E. Wagner, 2012. "Deficits, Debt, and Democracy," Books, Edward Elgar Publishing, number 14477, March.
    16. Amacher, Gregory S. & Ollikainen, Markku, 2024. "Prices versus quantities in forest regulation," Forest Policy and Economics, Elsevier, vol. 160(C).
    17. Susaeta, Andres & Chang, Sun Joseph & Carter, Douglas R. & Lal, Pankaj, 2014. "Economics of carbon sequestration under fluctuating economic environment, forest management and technological changes: An application to forest stands in the southern United States," Journal of Forest Economics, Elsevier, vol. 20(1), pages 47-64.
    18. Skander BEN ABDALLAH & Pierre LASSERRE, 2015. "Optimum Forest Rotations of Alternative Tree Species," Cahiers de recherche 06-2015, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    19. David J. Hebert & Richard E. Wagner, 2015. "Political Parties as Interest Groups," Levine's Bibliography 786969000000001246, UCLA Department of Economics.
    20. Khan, M. Ali, 2016. "On a forest as a commodity and on commodification in the discipline of forestry," Forest Policy and Economics, Elsevier, vol. 72(C), pages 7-17.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:167:y:2024:i:c:s1389934124001540. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.