Work

Disturbance effects on timberland returns

Year: 2024

Type: article

Abstract: Probability theory is applied to the effect of severe disturbances on the return rate on capital within multiannual stands growing crops. Two management regimes are discussed, rotations of even-aged plants on the one hand, and uneven-aged semi-stationary state on the other. The effect of any disturbance appears two-fold, contributing to both earnings and capitalization. Results are illustrated using data from a recently published study, regarding spruce (Picea abies) forests in Austria. The economic results differ from those of the paper where the data is presented, here indicating continuous-cover forestry is financially inferior to rotation forestry. Any severe disturbance may induce a regime shift from continuous-cover to even-aged forestry. If such a regime shift is not accepted, the disturbance losses reduce profits but do not affect capitalization, making continuous-cover forestry financially more sensitive to disturbances. Revenue from carbon rent favors the management regime with higher carbon stock. The methods introduced in this paper can be applied to any dataset, regardless of location and crop species.

Source: PLOS Sustainability and Transformation

DOI: 10.1371/journal.pstr.0000146

Author: Petri P. Kärenlampi

Language: English

Topic: Forest Management and Policy

Subfield: Global and Planetary Change

Field: Environmental Science

Domain: Physical Sciences

SDGs: Life on land, Climate action

Open Access status: gold

Estimated APC paid: $3,000

Funder: Niemi-säätiö