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Payment for Multiple Forest Benefits Alters the Effect of Tree Disease on Optimal Forest Rotation Length

Author

Listed:
  • Morag F. Macpherson

    (Computing Science and Mathematics, School of Natural Sciences, University of Stirling)

  • Adam Kleczkowski

    (Computing Science and Mathematics, School of Natural Sciences, University of Stirling)

  • John R. Healey

    (School of Environment, Natural Resources and Geography, Bangor University)

  • Nick Hanley

    (Department of Geography and Sustainable Development, University of St. Andrews)

Abstract

Forests deliver multiple benefits both to their owners and to wider society. However, a wave of forest diseases and pests is threatening this worldwide. In this paper we examine the optimal rotation length of a single-aged, single rotation forest when a payment for non-timber benefits is included. This payment reflects the social values of forest management and is offered to private forest owners to partly internalise such benefits. We show that the inclusion of such a payment generally increases optimal rotation length, but this effect shows a range of complex interactions with key factors linked to tree disease (its external pressure, rate of transmission and impact on the value of harvested timber). Moreover, we highlight that this result is dependent on the structure of the payment for non-timber benefits, and under some constraints it may be optimal to never harvest the forest.

Suggested Citation

  • Morag F. Macpherson & Adam Kleczkowski & John R. Healey & Nick Hanley, 2016. "Payment for Multiple Forest Benefits Alters the Effect of Tree Disease on Optimal Forest Rotation Length," Discussion Papers in Environment and Development Economics 2016-05, University of St. Andrews, School of Geography and Sustainable Development.
    • Handle: RePEc:sss:wpaper:2016-05
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    References listed on IDEAS

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    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, April.
    2. Alvarez, Luis H.R. & Koskela, Erkki, 2006. "Does risk aversion accelerate optimal forest rotation under uncertainty?," Journal of Forest Economics, Elsevier, vol. 12(3), pages 171-184, December.
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    Cited by:

    1. Macpherson, Morag F. & Kleczkowski, Adam & Healey, John R. & Quine, Christopher P. & Hanley, Nick, 2017. "The effects of invasive pests and pathogens on strategies for forest diversification," Ecological Modelling, Elsevier, vol. 350(C), pages 87-99.
    2. McTaggart, Ewan & Megiddo, Itamar & Kleczkowski, Adam, 2023. "The effect of pests and pathogens on forest harvesting regimes: A bioeconomic model," Ecological Economics, Elsevier, vol. 209(C).
    3. Godwin K. Vondolia & Wenting Chen & Claire W. Armstrong & Magnus D. Norling, 2020. "Bioeconomic Modelling of Coastal Cod and Kelp Forest Interactions: Co-benefits of Habitat Services, Fisheries and Carbon Sinks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 25-48, January.
    4. Félix Bastit & Marielle Brunette & Claire Montagne-Huck, 2021. "Earth, wind and fire: A multi-hazard risk review for natural disturbances in forests," Working Papers of BETA 2021-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    More about this item

    Keywords

    multiple-output forest; payment for ecosystem services; bioeconomic modelling; optimal rotation length; Hartman model.;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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