Changing decisions in a changing landscape: How might forest owners in an urbanizing region respond to emerging bioenergy markets?

The global bioenergy market has considerable impacts on local land use patterns, including landscapes in the Southeastern United States where increased demand for bioenergy feedstocks in the form of woody biomass is likely to affect the management and availability of forest resources. Despite extensive research investigating the productivity and impacts of different bioenergy feedstocks, relatively few studies have assessed the preferences of private landowners, who control the majority of forests in the eastern U.S., to harvest biomass for the bioenergy market. To better understand contingent behaviors given emerging biomass markets, we administered a stated preference experiment to private forest owners in the rapidly urbanizing Charlotte Metropolitan region. Respondents indicated their preferences for harvesting woody biomass under a set of hypothetical market-based scenarios with varying forest management plans and levels of economic return. Our analytical framework also incorporated data from a previously-administered revealed preference survey and spatially-explicit remote sensing data, enabling us to analyze how individuals’ ownership characteristics, their emotional connection the forests they manage, and the spatial patterns of nearby land uses, influence willingness to grow bioenergy feedstocks. We found conditional support for feedstock production, even among woodland owners with no history of active management. Landowners preferred higher economic returns for each management plan. However low-intensity harvest options were always preferred to more intensive management alternatives regardless of economic return, suggesting that these landowners may be more strongly motivated by aesthetic or quality-of-life concerns than feedstock revenues. Our analysis indicated preferences were dependent upon individual and environmental characteristics, with younger, more rural landowners significantly more interested in growing feedstocks relative to their older and more urban counterparts. While this study focuses on one small sample of urban forest owners, our results do suggest that policy makers and resource managers can better inform stand-level decision-making by understanding how feedstock production preferences vary across populations.     

Landowner willingness to supply marginal land for bioenergy production

This study elicits willingness to supply marginal land for biomass cultivation in Southern Lower Michigan. Most of the surveyed landowners are not interested in renting land for bioenergy crop production. Those who are interested offer relatively little land for bioenergy crops, even at rental rates three times current levels. Willing landowners would prefer to grow a significant portion of these crops on cropland rather than non-crop, marginal land. Hence, the area of marginal land that owners are willing to supply for bioenergy crop production falls far short of area estimates based on remote sensing that ignore landowner preferences.     

Landowners’ willingness to promote bioenergy production on wasteland − future impact on land use of cutaway peatlands

Landowners are the key players in bioenergy production on wasteland; such as cutaway peatlands. In this study, the landowner’s interest to use cutaway peatlands for bioenergy production was investigated using a survey and GIS (Geographic Information Systems) methods in an area in South Ostrobothnia, Finland. The focus was to identify which different bioenergy production chains are preferred by the respondents: combustion, gasification or biogas production from agriculture, energy-willow short-rotation forestry or forestry based energy crops. Also, the influence of personal environmental values on the selection was measured and the future impacts and barriers for the land use were assessed.Afforestation was the most popular after-use method among the landowners. The next most favorable method was energy crop cultivation but it was highly dependent on economic profitability and subsidies. Currently, approximately 8.2% or 500 ha of the total peat extraction area could be used for bioenergy production in the region by 2035. Based on the survey, forest based biomass is the best option if bioenergy is to be produced. The next choice was agro biomass and the least favored plant was willow. This study suggests that the biggest cutaway peatlands will be converted to forest energy in the future. Suggestive results were that the owners with high environmental values are especially interested in agro biomass growing and the landowner having a distant home place does not have a negative influence on bioenergy production. Altogether, land use and biomass production of cutaway peatlands is connected with the demands of the Finnish bio-economy.     

Woody biomass potential for energy feedstock in United States

The production reliability and relatively low costs of sustainably harvested woody biomass such as logging residue and low value roundwood could make it a significant component of the Renewable Fuel Standards portfolio. This research explored a set of woody biomass harvesting combinations of different sources and wood types using a cost minimizing linear programming model populated with disaggregated regional inventory, yield, and cost data, and projected future conventional wood demand of the United States. The model pre-satisfied conventional wood demand before harvesting roundwood as woody biomass. Findings suggest that collecting forest residue and non-merchantable (small sized) timber may provide the largest initial contribution in woody biomass supply. Regional estimations imply that not all regions have the capacity to develop bioenergy plants without using merchantable (medium sized) wood. Within a reasonable range of harvesting costs, demand for roundwood is expected to increase with higher energy production targets. Harvesting merchantable natural softwood as woody biomass has a relatively small impact on marginal supply costs. This will result in little or no disturbance to merchantable natural softwood timber management and operations if demand for woody biomass increased.     

On the economics of forests and climate change: Deriving optimal policies

First-best optimal forest sector carbon policy is examined. Using a forest and energy sector model with a carbon cycle module we show that the renewability and carbon neutrality arguments do not warrant emission free status of wood use. As a general optimality principle, the release of carbon is penalized by a tax and carbon capture is subsidized. However, under the biomass stock change carbon accounting convention, the land owners pay for the roundwood emissions and, to avoid double counting, the use of roundwood is treated as emission free. Yet, the carbon accounting convention followed does not affect the equilibrium outcome. The bioenergy from harvest residues is not emission free either. Furthermore, we show that an optimal policy subsidizes the production of wood products for their carbon sequestration. Correspondingly, carbon removals by biomass growth are subsidized and the harvest residue generation taxed. Numerical solution of the model shows that, although the use of wood is not emission free, it is optimal to increase the use of wood, possibly also in the energy sector. Before the wood use can be increased, the forest biomass will be increased. This carbon sink decreases the net emissions until the forest resources reach a new equilibrium.     

Supply potential and annual availability of timber and forest biomass resources for energy considering inter-prefectural trade in Japan

This study estimates the supply potential and annual availability of timber and forest biomass resources under profitable forest management in Japan. It focuses on four prefectures, namely, Fukushima, Ibaraki, Tochigi, and Gunma, and considers the trade between these prefectures. Production forests were extracted as subcompartments where the expected revenues surpassed all costs, from planting to final harvest. To estimate harvesting costs, appropriate harvesting systems were determined according to each prefecture’s topographical features. The log markets and woody biomass power generation plants were assumed to be the destinations for timber and forest biomass resources. Annual availability from the Cut-To-Length (CTL) system, consisting of the use of harvesters and forwarders, accounted for 58 % of the total availability, even though the supply potential from CTL was only 15 %; this is because CTL is the most productive and least expensive harvesting system. Then, the effects of subsidies on availability are examined. Availability under an additional regeneration subsidy meets almost the entire current demand in this region. Furthermore, availability with a thinning subsidy can meet the forecasted future demand in this region, while availability with both thinning and additional regeneration subsidies can meet future demand in all prefectures analyzed in the present study. Thus, subsidies play an important role in the profitability of forestry operations as well as the supply of timber and forest biomass resources in Japan.     

Policy lessons from spatiotemporal enrollment patterns of payment for ecosystem service programs in Argentina

Payment for ecosystem services schemes (PES) are lauded as a market-based solution to curtail deforestation and restore degraded ecosystems. However, PES programs often fail to conserve sites under strong long-term deforestation pressures. Underperformance, in part, is likely due to adverse selection. Spatial adverse selection occurs when landowners are more likely to enroll parcels with low deforestation pressure than parcels with high deforestation pressure. Temporal adverse selection arises when parcels are enrolled for short time periods. In both cases, financial resources are allocated without having a sizeable impact on long-term land use change. Improving program performance to overcome these shortcomings requires understanding attributes of landowners and their parcels across large scales to identify spatial and temporal enrollment patterns that drive adverse selection. In this paper, we examine these patterns in Argentina’s PES program in Chaco forest, a global deforestation hotspot. Our study area covers 252,319 km². Results from multinomial logistic regression models showed that large parcels of enrolled land and parcels owned by absentee landowners exhibit greater evidence of spatiotemporal adverse selection than smaller parcels or parcels owned by local landowners. Furthermore, parcels managed under land use plans for conservation and restoration are more likely to be associated with adverse selection than parcels managed for financial returns such as harvest of non-timber forest products, silviculture, and silvopasture. However, prior to recommending that PES programs focus on land uses with higher potential earnings, a greater understanding is needed of the degree to which these land uses meet ecological and biodiversity goals of PES programs. We suggest that increased spatial targeting of enrollment, along with enrollment of local landowners and further incentives for land uses that support conservation and restoration, could promote long-term conservation of forest lands.     

Scale of harvesting by non-industrial private forest landowners

We examine the intensity of harvesting decision by non-industrial landowners at the lowest price offer they deem acceptable, using a multiple bounded discrete choice stated preference approach that draws upon and connects two subfields of forestry, one identifying characteristics of landowners important to past harvesting or reforestation decisions, and another proposing how landowners evaluate price offers for forest harvesting decisions. Variables important to harvest intensity choices when the landowners find an acceptable price have only been considered for those landowners who actually have participated in harvesting markets, whereas here we examine the behavior of these individuals as well as those who are on the margin (i.e., have not harvested at prevailing current or past market prices). We show that harvest intensity depends critically on the extent of urbanization, indicated by the presence of structures on a parcel as well as forested tract size, along with landowner characteristics such as absenteeism and length of ownership. The results are useful for understanding the timber management behavior for a majority of landowners who may not harvest at prevailing prices, but may participate should prices reach a level acceptable to them, where this level is determined by individual preferences for standing timber resources.     

Economics of carbon sequestration under fluctuating economic environment,forest management and technological changes: An application to forest stands in the southern United States

This study presents a model that determines the effect of current and future payments for carbon sequestration, proportion of wood that sequesters carbon in long-lived product and landfills, and amount of carbon in the wood, on the optimal current forest harvest age. Increased current and future prices of carbon would lead to a longer and shorter harvest age, respectively. Higher current prices of carbon could increase the supply of carbon at a decreasing rate due to longer harvest ages. Moderate prices of carbon would encourage landowners to maintain standing timber. Policies focused then on stimulating landowners to hold timber on forestlands may not necessarily imply higher amounts of sequestered carbon. Increased future values of carbon could imply a reduction of the current supply of carbon.     

Optimal forest management with sequential disturbances

Previous work in forest management under uncertainty has been based on the assumption that landowners face a risk of only one damaging event during any forest rotation, with the main result being that landowners choose shorter rotation ages. These models are universal in an assumption that, should the disturbance arise in a given rotation, the landowner salvages what is possible through a harvest and replants to begin a new rotation. However, a real possibility exists that multiple disturbances may occur in one rotation, with the landowner retaining the damaged stand thereby waiting through the first or even a subsequent disturbance to harvest and begin a new rotation. We develop a new approach for rotations models and choices that allows more than one event and flexibility in the timing of harvest, where tree recovery and damage may make continuance of the rotation, rather than starting over, a rent maximizing strategy. We thereby generalize the highly-cited body of literature based on Paul Samuelson's and William Reed's seminal contributions. Results demonstrate that failure to consider these new features leads to suboptimal harvest decisions and highly suboptimal land rent values. Important parameters are found to be arrival rates of future disturbances and survival proportions and growth rates after each disturbance.     

Harvesting Choices and Timber Supply among Landowners in the Southern United States

The recent rise of institutional timberland ownership has led to a significant change in the structure and conduct of the timber industry in the United States. In this study, we apply a two‐period harvest model to assess the timber harvesting behavior of various landowners at the stand level by utilizing USDA Forest Service Forest Inventory and Analysis data for nine southern states. Forest industry and institutional timberland owners were found to be more likely to conduct partial and final harvests than nonindustrial private forest landowners. Aggregately, Timberland Investment Management Organizations were found to be most, and timberland Real Estate Investment Trusts to be least, price‐responsive among ownership groups.     

中国林业生物质能源开发利用的调查思考

分析了我国木本油料能源资源、木质能源资源和木本淀粉能源资源现状和发展潜力,介绍了生物柴油、燃料乙醇、生物质发电和固体颗粒燃料四种生物质能产品的发展情况,根据国家生物质能发展目标,提出了进一步推动林业生物质能源发展的基本思路。     

Does Spatial Dependence Affect the Intention to Make Land Available for Bioenergy Crops?

We find spatial dependence in landowners’ stated intentions to make land available for bioenergy crops. Our data are generated from a contingent valuation survey of 599 owners of marginal land in southern Michigan. Employing a Bayesian framework and using these spatially explicit data, we estimate and compare non‐spatial probit and spatial Durbin probit models to examine the presence of spatial dependence in land rental intentions. Results show that intentions to rent land for bioenergy crop production are spatially dependent. This spatial dependence arises both from the land supply intentions of nearby landowners and from spatial spillover effects of landowner characteristics and attitudes towards environmental amenities and the disamenities of land rental. We show that ignoring spatial dependence in the intentions of neighbouring landowners to participate in land rental markets for bioenergy feedstocks can lead to distortions that underestimate total effects. Our finding implies that studies of land use and crop supply should test for spatial interactions in order to make accurate inferences.     

Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?

Forest management affects the quantity of CO₂ emissions in the atmosphere through carbon sequestration in standing biomass, carbon storage in forest products and production of bioenergy. The main question studied in this paper is whether forest carbon sequestration is worth increasing at the expense of bioenergy and forest products to achieve the EU emissions reduction target for 2050 in a cost-efficient manner. A dynamic cost minimisation model is used to find the optimal combination of carbon abatement strategies to meet annual emissions targets between 2010 and 2050. The results indicate that forest carbon sequestration is a low-cost abatement method. With sequestration, the net present costs of meeting EU carbon targets can be reduced by 23%.     

Forest carbon benefits,costs and leakage effects of carbon reserve scenarios in the United States

This study evaluated the potential effectiveness of future carbon reserve scenarios, where U.S. forest landowners would hypothetically be paid to sequester carbon on their timberland and forego timber harvests for 100 years. Scenarios featured direct payments to landowners of $0 (baseline), $5, $10, or $15 per metric ton of additional forest carbon sequestered on the set aside lands, with maximum annual expenditures of $3 billion. Results indicated that from 1513 to 6837 Tg (Teragrams) of additional carbon (as carbon dioxide equivalent, CO₂e) would be sequestered on U.S. timberlands relative to the baseline case over the next 50 years (30–137 Tg CO₂e annually). These projected amounts of sequestered carbon on timberlands take into account projected increases in timber removal and forest carbon losses on other timberlands (carbon leakage effects). Net effectiveness of carbon reserve scenarios in terms of overall net gain in timberland carbon stocks from 2010 to 2060 ranged from 0.29 tCO₂e net carbon increase for a payment of $5/tCO₂e to the landowner (71% leakage), to 0.15 tCO₂e net carbon increase for a payment of $15/tCO₂e to the landowner (85% leakage). A policy or program to buy carbon credits from landowners would need to discount additions to the carbon reserve by the estimated amount of leakage. In the scenarios evaluated, the timber set-asides reduced timberland area available for harvest up to 35% and available timber inventory up to 55%, relative to the baseline scenario over the next 50 years, resulting in projected changes in timber prices, harvest levels, and forest product revenues for the forest products sector.     

Assessing forest management strategies using a contingent valuation approach and advanced visualisation techniques: A Portuguese case study

The assessment of alternative forest management strategies should account not only for the private benefits to forest landowners but also for the ecological, environmental and economic benefits valued by society. There are a number of empirical valuation methods that may contribute to that assessment. These methods involve several steps: data acquisition, model specification and estimation. In this paper, this approach is illustrated in the context of a survey regarding alternative management strategies for a forest area in Central Portugal by implementing a contingent valuation experiment where an advanced landscape visualisation technique is employed to generate the visual information conveyed in the valuation scenarios. Several econometric model specifications are considered as well as alternative approaches to handle zero willingness to pay values and protest responses. The results obtained suggest the potential of the proposed approach for an effective comparison of alternative forest management strategies.     

Willingness to contribute to the management of recreational quality on private lands in Finland

In Finland, privately owned nature areas are widely used for recreation due to open public access. However, since landowners are not obligated to take everyman's rights into consideration when making management decisions, the recreational quality of nature areas is not guaranteed for users. We examined whether individual recreationists on private lands would be willing purchase management actions from landowners that influence recreational quality. In addition to willingness to pay, we assessed willingness to contribute labor to such actions. The results demonstrated that about half of the recreationists who participated in our survey were willing to contribute labor and about 10% were willing to pay to direct the management of their typical recreation site on private lands. The mean willingness to pay was 92 euros per year and the mean willingness to contribute labor 3.5 days per year. A latent class regression model revealed that recreationists were not, however, completely homogeneous in their preferences for the actions or in their preferred contribution forms. On the basis of the results, there is moderate demand from recreationists for management to improve recreational quality and the potential for local landscape management arrangements that allow individual recreationists to contribute labor.     

The relationship between woody biomass consumption and economic growth: Nonlinear ARDL and causality

In this paper, the structure of the relationship between woody biomass energy consumption and real per Capita GDP was analyzed in the period of 1980–2012 for the selected African countries by ARDL (Autoregressive Distributed Lag), nonlinear ARDL, Granger causality and forecast error variance decomposition methods. After a symmetric relationship between woody biomass energy consumption and economic growth was determined by the nonlinear ARDL (NARDL) model, ARDL and Granger Causality methods were applied. According to results of the Granger Causality method, there is a unidirectional causality running from economic growth to woody biomass energy consumption for Botswana, Cameroon, Uganda, and Zambia and from woody biomass energy consumption to economic growth for Burkina Faso, Malawi, Central African Republic, Namibia, Côte d’Ivoire, Djibouti, Gabon and Zimbabwe. The bidirectional causality was supported for Kenya, Lesotho, Madagascar and Togo. Lastly, forecast error variance decomposition method was applied to support the results obtained from Granger Causality method. The forecast error variance decomposition results of real per Capita GDP and woody biomass energy consumption showed that woody biomass energy and real per Capita GDP made the important contribution to the forecast error variance of itself and each other.     

Land use determines interest in conservation easements among private landowners

Protection of private lands through conservation easements has garnered recent attention from scientists and conservation practitioners. Questions remain, however, about the specific characteristics and activities driving landowners’ interest in conservation easements and their willingness to consider granting them. Resolving these questions could improve prospects for private land conservation by helping land conservation organizations identify and better understand potential easement grantors. We conducted a survey of 513 private landowners in a peri-urban fringe area in the Finger Lakes region of upstate New York, USA. Logistic regression analysis returned seven significant predictors of landowner willingness to consider granting conservation easements. Participation in environmental organizations, recreational land-use activities, wild food gathering, and land entitlement were the strongest factors promoting interest in conservation easements. Long-term residency, male gender, and hunting or fishing, on the other hand, significantly decreased the likelihood of considering conservation easements. The findings suggest that landowners most interested in to granting conservation easements are active land users. Notably, among all the land-use activities reported, the most frequent and the most important in predicting interest in conservation easements are those undertaken for recreational and subsistence, rather than economic, purposes. This suggests that while easements might be appropriate for working lands, their role in reconciling land use with conservation requires a flexible definition of work.     

Effect of conserving habitat for biodiversity on optimal management of non-industrial private forests in Florida

Healthy forests and enhanced habitat for wildlife is a growing concern among public and policy makers. These concerns have led to substantial interest in promoting various regulatory and voluntary compliance policies to further biodiversity on private forests. These policies, however, might result in additional cost to forestland owners. In this paper, we estimate the opportunity cost of adopting various biodiversity-friendly forest practices. We do this in the context of slash pine, a dominant commercial tree plantation species in Florida. Results suggest that prescribed burning, invasive species control, maintaining streamside buffer zones, and extending timber harvest beyond the optimal rotation age would significantly decrease the profitability of slash pine forestry. If the major objective of landowners is to maximize profits, results indicate that they are less likely to adopt these practices at socially desirable levels without a policy support. More specifically, results suggest that an annual payment of $38–83 per hectare is required for landowners to adopt these practices. The paper further argues that application of mere command-and-control approaches to implement these practices may result in conversion of private forests to other competitive land uses.