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The optimal rotation of a flammable forest stand when both carbon sequestration and timber are valued: a multi-criteria approach

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  • Luis Diaz-Balteiro
  • David Martell
  • Carlos Romero
  • Andrés Weintraub

Abstract

This paper proposes a multi-criteria approach that accounts for the risk of fire when determining the optimal rotation of a forest stand that is being managed for both timber production and carbon sequestration purposes. The multi-criteria framework uses in a combined way, multi-objective optimization and compromise programming methods. The proposed approach is computationally simple and allows for the quantification of conflicts between the criteria considered through the elicitation of the corresponding Pareto frontiers. Once the best portion or compromise sets of the Pareto frontiers are determined, then some indications of the increase in social welfare due to a potential reduction in the risk of fire are obtained. We illustrate the use of our methodology by applying it to an example that has previously been investigated in the forestry literature. Finally, some potential policy implications derived from the results obtained are highlighted. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Luis Diaz-Balteiro & David Martell & Carlos Romero & Andrés Weintraub, 2014. "The optimal rotation of a flammable forest stand when both carbon sequestration and timber are valued: a multi-criteria approach," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(2), pages 375-387, June.
    • Handle: RePEc:spr:nathaz:v:72:y:2014:i:2:p:375-387
    DOI: 10.1007/s11069-013-1013-3
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    References listed on IDEAS

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    1. Adam J. Daigneault & Mario J. Miranda & Brent Sohngen, 2010. "Optimal Forest Management with Carbon Sequestration Credits and Endogenous Fire Risk," Land Economics, University of Wisconsin Press, vol. 86(1), pages 155-172.
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    3. G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
    4. Reed, William J., 1984. "The effects of the risk of fire on the optimal rotation of a forest," Journal of Environmental Economics and Management, Elsevier, vol. 11(2), pages 180-190, June.
    5. Guitart, A. Bussoni & Rodriguez, L.C. Estraviz, 2010. "Private valuation of carbon sequestration in forest plantations," Ecological Economics, Elsevier, vol. 69(3), pages 451-458, January.
    6. Neher,Philip A., 1990. "Natural Resource Economics," Cambridge Books, Cambridge University Press, number 9780521311748, September.
    7. 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.
    8. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
    9. Englin, Jeffrey E. & Boxall, Peter C. & Hauer, Grant, 2000. "An Empirical Examination Of Optimal Rotations In A Multiple-Use Forest In The Presence Of Fire Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-14, July.
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    Cited by:

    1. de Sousa Xavier, António Manuel & Costa Freitas, Maria de Belém & de Sousa Fragoso, Rui Manuel, 2015. "Management of Mediterranean forests — A compromise programming approach considering different stakeholders and different objectives," Forest Policy and Economics, Elsevier, vol. 57(C), pages 38-46.
    2. Wan-Yu Liu & Qunwei Wang, 2016. "Optimal pricing of the Taiwan carbon trading market based on a demand–supply model," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 209-242, November.
    3. Marta Ezquerro & Marta Pardos & Luis Diaz-Balteiro, 2019. "Sustainability in Forest Management Revisited Using Multi-Criteria Decision-Making Techniques," Sustainability, MDPI, vol. 11(13), pages 1-24, July.
    4. Susaeta, Andres, 2018. "On Pressler’s indicator rate formula under the generalized Reed model," Journal of Forest Economics, Elsevier, vol. 30(C), pages 32-37.
    5. Álvarez-Miranda, Eduardo & Garcia-Gonzalo, Jordi & Ulloa-Fierro, Felipe & Weintraub, Andrés & Barreiro, Susana, 2018. "A multicriteria optimization model for sustainable forest management under climate change uncertainty: An application in Portugal," European Journal of Operational Research, Elsevier, vol. 269(1), pages 79-98.

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