IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v132y2021ics1389934121001933.html
   My bibliography  Save this article

Forest owners' preferences for contract-based management to enhance environmental values versus timber production

Author

Listed:
  • Juutinen, Artti
  • Kurttila, Mikko
  • Pohjanmies, Tähti
  • Tolvanen, Anne
  • Kuhlmey, Katharina
  • Skudnik, Mitja
  • Triplat, Matevž
  • Westin, Kerstin
  • Mäkipää, Raisa

Abstract

Forests are sources of multiple ecosystem services (ESs) essential for human wellbeing. Forest owners are critical actors to decide which benefits they produce from their forests. To support the uptake of alternative forest management strategies in a way that is beneficial from the perspective of society as whole, new incentive schemes could be implemented in the future. We applied the choice experiment method to investigate Finnish forest owners' potential participation in an incentive scheme in which they were asked to practice a ‘Timber Oriented’ or a ‘Nature Oriented’ management strategy according to the terms of a hypothetical contract. We found that the majority forest owners are willing to participate in the considered contract-based payment scheme, especially those supporting biodiversity and non-market ESs. Non-profitability attributes including biodiversity, carbon stock, and probability of climate change induced damage were highly valued. Forest owners prefer the management contract with the Nature Oriented strategy. Forest owners' preferences for the contract-based management and associated effects are heterogenous.

Suggested Citation

  • Juutinen, Artti & Kurttila, Mikko & Pohjanmies, Tähti & Tolvanen, Anne & Kuhlmey, Katharina & Skudnik, Mitja & Triplat, Matevž & Westin, Kerstin & Mäkipää, Raisa, 2021. "Forest owners' preferences for contract-based management to enhance environmental values versus timber production," Forest Policy and Economics, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:forpol:v:132:y:2021:i:c:s1389934121001933
    DOI: 10.1016/j.forpol.2021.102587
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934121001933
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2021.102587?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Juutinen, Artti & Ahtikoski, Anssi & Lehtonen, Mika & Mäkipää, Raisa & Ollikainen, Markku, 2018. "The impact of a short-term carbon payment scheme on forest management," Forest Policy and Economics, Elsevier, vol. 90(C), pages 115-127.
    2. Mäntymaa, Erkki & Juutinen, Artti & Tyrväinen, Liisa & Karhu, Jouni & Kurttila, Mikko, 2018. "Participation and compensation claims in voluntary forest landscape conservation: The case of the Ruka-Kuusamo tourism area, Finland," Journal of Forest Economics, Elsevier, vol. 33(C), pages 14-24.
    3. Sheremet, Oleg & Ruokamo, Enni & Juutinen, Artti & Svento, Rauli & Hanley, Nick, 2018. "Incentivising Participation and Spatial Coordination in Payment for Ecosystem Service Schemes: Forest Disease Control Programs in Finland," Ecological Economics, Elsevier, vol. 152(C), pages 260-272.
    4. Masiero, Lorenzo & Hensher, David A., 2010. "Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 349-358, June.
    5. Ficko, Andrej & Lidestav, Gun & Ní Dhubháin, Áine & Karppinen, Heimo & Zivojinovic, Ivana & Westin, Kerstin, 2019. "European private forest owner typologies: A review of methods and use," Forest Policy and Economics, Elsevier, vol. 99(C), pages 21-31.
    6. Juutinen, Artti & Tolvanen, Anne & Koskela, Terhi, 2020. "Forest owners' future intentions for forest management," Forest Policy and Economics, Elsevier, vol. 118(C).
    7. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    8. Yohei Mitani & Henrik Lindhjem, 2015. "Forest Owners’ Participation in Voluntary Biodiversity Conservation: What Does It Take to Forgo Forestry for Eternity?," Land Economics, University of Wisconsin Press, vol. 91(2), pages 235-251.
    9. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    10. Janne Rämö & Olli Tahvonen, 2017. "Optimizing the Harvest Timing in Continuous Cover Forestry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 853-868, August.
    11. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    12. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    13. Lawrence, Anna & Deuffic, Philippe & Hujala, Teppo & Nichiforel, Liviu & Feliciano, Diana & Jodlowski, Krzysztof & Lind, Torgny & Marchal, Didier & Talkkari, Ari & Teder, Meelis & Vilkriste, Lelde & W, 2020. "Extension, advice and knowledge systems for private forestry: Understanding diversity and change across Europe," Land Use Policy, Elsevier, vol. 94(C).
    14. Juutinen, Artti & Mäntymaa, Erkki & Ollikainen, Markku, 2013. "Landowners’ conservation motives and the size of information rents in environmental bidding systems," Journal of Forest Economics, Elsevier, vol. 19(2), pages 128-148.
    15. Hess, Stephane & Rose, John M. & Hensher, David A., 2008. "Asymmetric preference formation in willingness to pay estimates in discrete choice models," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 847-863, September.
    16. Mostegl, Nina M. & Pröbstl-Haider, Ulrike & Jandl, Robert & Haider, Wolfgang, 2019. "Targeting climate change adaptation strategies to small-scale private forest owners," Forest Policy and Economics, Elsevier, vol. 99(C), pages 83-99.
    17. Blattert, Clemens & Lemm, Renato & Thürig, Esther & Stadelmann, Golo & Brändli, Urs-Beat & Temperli, Christian, 2020. "Long-term impacts of increased timber harvests on ecosystem services and biodiversity: A scenario study based on national forest inventory data," Ecosystem Services, Elsevier, vol. 45(C).
    18. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    19. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Contracts for afforestation and the role of monitoring for landowners’ willingness to accept," Forest Policy and Economics, Elsevier, vol. 51(C), pages 29-37.
    20. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
    21. Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haeler, Elena & Bolte, Andreas & Buchacher, Rafael & Hänninen, Harri & Jandl, Robert & Juutinen, Artti & Kuhlmey, Katharina & Kurttila, Mikko & Lidestav, Gun & Mäkipää, Raisa & Rosenkranz, Lydia & Tri, 2023. "Forest subsidy distribution in five European countries," Forest Policy and Economics, Elsevier, vol. 146(C).
    2. Janová, Jitka & Hampel, David & Kadlec, Jiří & Vrška, Tomáš, 2022. "Motivations behind the forest managers’ decision making about mixed forests in the Czech Republic," Forest Policy and Economics, Elsevier, vol. 144(C).
    3. Ruokamo, Enni & Juutinen, Artti & Ashraf, Faisal Bin & Haghighi, Ali Torabi & Hellsten, Seppo & Huuki, Hannu & Karhinen, Santtu & Kopsakangas-Savolainen, Maria & Marttila, Hannu & Pongracz, Eva & Roma, 2024. "Estimating the economic value of hydropeaking externalities in regulated rivers," Applied Energy, Elsevier, vol. 353(PA).
    4. Diendéré, Achille Augustin & Kaboré, Dominique, 2023. "Preferences for a payment for ecosystem services program to control forest fires in Burkina Faso: A choice experiment," Forest Policy and Economics, Elsevier, vol. 151(C).
    5. Pukkala, Timo, 2022. "Assessing the externalities of timber production," Forest Policy and Economics, Elsevier, vol. 135(C).
    6. Triplat, Matevž & Helenius, Satu & Laina, Ruben & Krajnc, Nike & Kronholm, Thomas & Ženko, Zdenka & Hujala, Teppo, 2023. "Private forest owner willingness to mobilise wood from dense, small-diameter tree stands," Forest Policy and Economics, Elsevier, vol. 148(C).
    7. Juutinen, Artti & Haeler, Elena & Jandl, Robert & Kuhlmey, Katharina & Kurttila, Mikko & Mäkipää, Raisa & Pohjanmies, Tähti & Rosenkranz, Lydia & Skudnik, Mitja & Triplat, Matevž & Tolvanen, Anne & Vi, 2022. "Common preferences of European small-scale forest owners towards contract-based management," Forest Policy and Economics, Elsevier, vol. 144(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juutinen, Artti & Haeler, Elena & Jandl, Robert & Kuhlmey, Katharina & Kurttila, Mikko & Mäkipää, Raisa & Pohjanmies, Tähti & Rosenkranz, Lydia & Skudnik, Mitja & Triplat, Matevž & Tolvanen, Anne & Vi, 2022. "Common preferences of European small-scale forest owners towards contract-based management," Forest Policy and Economics, Elsevier, vol. 144(C).
    2. Tyrväinen, Liisa & Mäntymaa, Erkki & Juutinen, Artti & Kurttila, Mikko & Ovaskainen, Ville, 2021. "Private landowners’ preferences for trading forest landscape and recreational values: A choice experiment application in Kuusamo, Finland," Land Use Policy, Elsevier, vol. 107(C).
    3. Juutinen, Artti & Tolvanen, Anne & Koskela, Terhi, 2020. "Forest owners' future intentions for forest management," Forest Policy and Economics, Elsevier, vol. 118(C).
    4. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    5. Mäntymaa, Erkki & Juutinen, Artti & Tyrväinen, Liisa & Karhu, Jouni & Kurttila, Mikko, 2018. "Participation and compensation claims in voluntary forest landscape conservation: The case of the Ruka-Kuusamo tourism area, Finland," Journal of Forest Economics, Elsevier, vol. 33(C), pages 14-24.
    6. Park, Subin & Lee, Jongsu & Kim, Junghun, 2024. "Exploring the fittest choice model for consumer preference analysis on over-the-top service," Technology in Society, Elsevier, vol. 76(C).
    7. Christine Bertram & Heini Ahtiainen & Jürgen Meyerhoff & Kristine Pakalniete & Eija Pouta & Katrin Rehdanz, 2020. "Contingent Behavior and Asymmetric Preferences for Baltic Sea Coastal Recreation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 49-78, January.
    8. Mäntymaa, Erkki & Pouta, Eija & Hiedanpää, Juha, 2021. "Forest owners' interest in participation and their compensation claims in voluntary landscape value trading: The case of wind power parks in Finland," Forest Policy and Economics, Elsevier, vol. 124(C).
    9. Aravena, Claudia & Martinsson, Peter & Scarpa, Riccardo, 2014. "Does money talk? — The effect of a monetary attribute on the marginal values in a choice experiment," Energy Economics, Elsevier, vol. 44(C), pages 483-491.
    10. Kim, Kyungah & Kim, Junghun, 2024. "The study of brand loyalty and switching cost on OTT bundled service choice: Focusing on reference-dependent preferences in the saturated market," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    11. Lorenzo Masiero & David Hensher, 2011. "Shift of reference point and implications on behavioral reaction to gains and losses," Transportation, Springer, vol. 38(2), pages 249-271, March.
    12. Kim, Kyungah & Lee, Jongsu & Kim, Junghun, 2021. "Can liquefied petroleum gas vehicles join the fleet of alternative fuel vehicles? Implications of transportation policy based on market forecast and environmental impact," Energy Policy, Elsevier, vol. 154(C).
    13. Kim, Junghun & Park, Stephen Youngjun & Lee, Jongsu, 2018. "Do people really want renewable energy? Who wants renewable energy?: Discrete choice model of reference-dependent preference in South Korea," Energy Policy, Elsevier, vol. 120(C), pages 761-770.
    14. Feo-Valero, María & Arencibia, Ana Isabel & Román, Concepción, 2016. "Analyzing discrepancies between willingness to pay and willingness to accept for freight transport attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 151-164.
    15. Kim, Junghun & Lee, Hyunjoo & Lee, Jongsu, 2020. "Smartphone preferences and brand loyalty: A discrete choice model reflecting the reference point and peer effect," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    16. Masiero, Lorenzo & Hensher, David A., 2010. "Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 349-358, June.
    17. Stephane Hess & Andrew Daly & Richard Batley, 2018. "Revisiting consistency with random utility maximisation: theory and implications for practical work," Theory and Decision, Springer, vol. 84(2), pages 181-204, March.
    18. Scott, Anthony & Witt, Julia, 2020. "Loss aversion, reference dependence and diminishing sensitivity in choice experiments," Journal of choice modelling, Elsevier, vol. 37(C).
    19. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    20. De Borger, Bruno & Glazer, Amihai, 2017. "Support and opposition to a Pigovian tax: Road pricing with reference-dependent preferences," Journal of Urban Economics, Elsevier, vol. 99(C), pages 31-47.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:132:y:2021:i:c:s1389934121001933. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.