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An economic comparison of adaptation strategies towards a drought-induced risk of forest decline

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  • Sandrine Brèteau-Amores
  • Marielle Brunette
  • Hendrik Davi

Abstract

Drought is a source of stress affecting forest growth and resulting in financial losses for forest owners and amenity losses for society. Due to climate change, such natural event will be more frequent and intense in the future. In this context, the objective of the paper is to compare, from an economic perspective, different forest adaptation strategies towards drought-induced risk of decline. For that purpose, we focus on a case study of a forest of beech in Burgundy (France) and, we studied several adaptation options: density reduction, reduction of the rotation length and substitution by Douglas-fir. We also considered two levels of drought risk (intermediate and low soil water capacity) and two climatic scenarii from IPCC (RCP 4.5 and RCP 8.5). We combine a process-based forest-growth simulator (CASTANEA) with a traditional forest economics approach. The results showed that adaptation provided the best economic return in most of the scenario considered. Combining strategies appears as a relevant way to adapt forest towards a drought-induced risk of forest decline. The interest to consider two disciplinary fields was also demonstrated with beneficial scenarii in an ecological perspective that were not in an economic one and reversely.

Suggested Citation

  • Sandrine Brèteau-Amores & Marielle Brunette & Hendrik Davi, 2018. "An economic comparison of adaptation strategies towards a drought-induced risk of forest decline," Working Papers of BETA 2018-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2018-38
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    Cited by:

    1. Julie Thomas & Marielle Brunette & Antoine Leblois, 2021. "Adapting forest management practices to climate change : Lessons from a survey of French private forest owners," Working Papers hal-03142772, HAL.
    2. Bastit, Félix & Brunette, Marielle & Montagné-Huck, Claire, 2023. "Pests, wind and fire: A multi-hazard risk review for natural disturbances in forests," Ecological Economics, Elsevier, vol. 205(C).
    3. Zamora-Pereira, Juan Carlos & Hanewinkel, Marc & Yousefpour, Rasoul, 2023. "Robust management strategies promoting ecological resilience and economic efficiency of a mixed conifer-broadleaf forest in Southwest Germany under the risk of severe drought," Ecological Economics, Elsevier, vol. 209(C).
    4. M. Brunette & M. Hanewinkel & R. Yousefpour, 2020. "Risk aversion hinders forestry professionals to adapt to climate change," Climatic Change, Springer, vol. 162(4), pages 2157-2180, October.
    5. Dymond, Caren Christine & Giles-Hansen, Krysta & Asante, Patrick, 2020. "The forest mitigation-adaptation nexus: Economic benefits of novel planting regimes," Forest Policy and Economics, Elsevier, vol. 113(C).
    6. Brèteau-Amores, Sandrine & Yousefpour, Rasoul & Hanewinkel, Marc & Fortin, Mathieu, 2023. "Forest adaptation strategies to reconcile timber production and carbon sequestration objectives under multiple risks of extreme drought and windstorm events," Ecological Economics, Elsevier, vol. 212(C).

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    More about this item

    Keywords

    forest; drought; adaptation; climate change; economics; risk; carbon; CASTANEA.;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • 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

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