Assessing the Technical Efficiency of Timber Production during the Transition from a Production-Oriented Management Model to a Multifunctional One: A Case from Poland 1990-2019

The present work applied a data envelopment analysis (DEA) model to assess changes in the technical efficiency of timber production at a period of transition in forest management priorities. The study material consisted of data on timber sold by Polish State Forests (PSF) and on its forest management inputs in the years 1990-2019. During the period of economic transition in Poland (1990-2003) the technical efficiency of timber production on average amounted to 0.809 and was highly variable. In the free-market period, that efficiency was much higher (on average 0.939) and more stable. This improvement was achieved by substantial layoffs in the PSF, and steady rise in the share and standing volume of mature stands, which made it possible to increase timber production while adhering to sustainable management principles. Analysis of the various categories of inputs to timber production revealed that the greatest decline, in labor costs, was attributable to a fourfold reduction in the workforce, and was accompanied by a 2.4-fold increment in timber production. On the other hand, logging costs increased due to, among other causes, the pursuit of environmentally friendly but more expensive harvesting procedures and reductions in clearcutting, which entailed more dispersed harvesting operations.

Automated summary

The technical efficiency of timber production in Polish State Forests improved significantly during the economic transition and free-market periods, attributed to layoffs and growth in mature stands. Labor costs decreased significantly while logging costs increased due to environmentally friendly procedures and reduced clearcutting.