4.6 Article

Assessing the Economic Resilience of Different Management Systems to Severe Forest Disturbance

Journal

ENVIRONMENTAL & RESOURCE ECONOMICS
Volume 84, Issue 2, Pages 343-381

Publisher

SPRINGER
DOI: 10.1007/s10640-022-00719-5

Keywords

Disturbance economics; Engineering resilience; Present value; Willingness to pay for forestland; Forest value; Continuous cover forestry; Close to nature forestry; Tree mortality

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Given the drastic changes in the environment, quantifying the economic resilience of different forest management systems remains challenging. This study presents an analytical framework to quantify economic resilience and compares continuous cover forestry with clear fell system in Central Europe. The continuous cover system showed higher economic return and resilience, with faster economic recovery from disturbance compared to the clear fell system.
Given the drastic changes in the environment, resilience is a key focus of ecosystem management. Yet, the quantification of the different dimensions of resilience remains challenging, particularly for long-lived systems such as forests. Here we present an analytical framework to study the economic resilience of different forest management systems, focusing on the rate of economic recovery after severe disturbance. Our framework quantifies the post-disturbance gain in the present value of a forest relative to a benchmark system as an indicator of economic resilience. Forest values and silvicultural interventions were determined endogenously from an optimization model and account for risks affecting tree survival. We consider the effects of differences in forest structure and tree growth post disturbance on economic resilience. We demonstrate our approach by comparing the economic resilience of continuous cover forestry against a clear fell system for typical conditions in Central Europe. Continuous cover forestry had both higher economic return and higher economic resilience than the clear fell system. The economic recovery from disturbance in the continuous cover system was between 18.2 and 51.5% faster than in the clear fell system, resulting in present value gains of between 1733 and 4535 euro ha(-1). The advantage of the continuous cover system increased with discount rate and stand age, and was driven by differences in both stand structure and economic return. We conclude that continuous cover systems can help to address the economic impacts of increasing disturbances in forest management.

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