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Financial consequences of losing admixed tree species: A new approach to value increased financial risks by ungulate browsing

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  • Clasen, Christian
  • Griess, Verena C.
  • Knoke, Thomas

Abstract

The influence of ungulates on the growth of young trees is amply discussed in forestry literature, particularly game browsing. Although there are a few appraisal methods that consider negative long-term influences on forest regeneration, hitherto no approach has addressed the financial consequences of lost admixed tree species. A homogenised species composition may lead to an increased financial risk of a forest. Based on financial return and risk ratios of mixed forests, this paper derives the financial compensation that would be necessary to make acceptable the increased risk of pure forest for forest owners. In this conceptual case study we consider a two-species mixed forest (Norway spruce, Picea abies [L.] Karst. and European beech, Fagus sylvatica L.) and calculate a tree species composition with maximum financial return per unit of risk. The financial indicators were generated via 1000 Monte Carlo scenarios, which consider natural hazard risks as well as timber price fluctuations. In case of an assumed reduction of European beech in different mixed forests by 30 percentage points, a compensation rate for ungulate browsing of between 16 and 23 [euro] ha-Â 1Â yr-Â 1 was estimated. Compared to the annual gains of mixed-forest between 89 and 113 [euro] ha-Â 1Â yr-Â 1 for admixtures of beech between 70 and 30 percent, we consider this amount substantial and conclude that the appraisal of game browsing effects should include the changed risk profiles between homogenised and mixed forests.

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  • Clasen, Christian & Griess, Verena C. & Knoke, Thomas, 2011. "Financial consequences of losing admixed tree species: A new approach to value increased financial risks by ungulate browsing," Forest Policy and Economics, Elsevier, vol. 13(6), pages 503-511, July.
    • Handle: RePEc:eee:forpol:v:13:y:2011:i:6:p:503-511
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    1. Koster, Roman & Fuchs, Jasper M., 2022. "Opportunity costs of growing space – an essential driver of economical single-tree harvest decisions," Forest Policy and Economics, Elsevier, vol. 135(C).
    2. Wildberg, Johannes & Möhring, Bernhard, 2019. "Empirical analysis of the economic effect of tree species diversity based on the results of a forest accountancy data network," Forest Policy and Economics, Elsevier, vol. 109(C).
    3. Roessiger, Joerg & Griess, Verena C. & Härtl, Fabian & Clasen, Christian & Knoke, Thomas, 2013. "How economic performance of a stand increases due to decreased failure risk associated with the admixing of species," Ecological Modelling, Elsevier, vol. 255(C), pages 58-69.
    4. Marielle Brunette & Arnaud Dragicevic & Jonathan Lenglet & Alexandra Niedzwiedz & Vincent Badeau & Jean-Luc Dupouey, 2017. "Biotechnical portfolio management of mixed-species forests," Journal of Bioeconomics, Springer, vol. 19(2), pages 223-245, July.
    5. Grilli, Gianluca & Jonkisz, Jaroslaw & Ciolli, Marco & Lesinski, Jerzy, 2016. "Mixed forests and ecosystem services: Investigating stakeholders' perceptions in a case study in the Polish Carpathians," Forest Policy and Economics, Elsevier, vol. 66(C), pages 11-17.
    6. Clasen, Christian & Heurich, Marco & Glaesener, Laurent & Kennel, Eckhard & Knoke, Thomas, 2015. "What factors affect the survival of tree saplings under browsing, and how can a loss of admixed tree species be forecast?," Ecological Modelling, Elsevier, vol. 305(C), pages 1-9.
    7. Friedrich, Stefan & Paul, Carola & Brandl, Susanne & Biber, Peter & Messerer, Katharina & Knoke, Thomas, 2019. "Economic impact of growth effects in mixed stands of Norway spruce and European beech – A simulation based study," Forest Policy and Economics, Elsevier, vol. 104(C), pages 65-80.
    8. Luz Maria Castro & Fabian Härtl & Santiago Ochoa & Baltazar Calvas & Leonardo Izquierdo & Thomas Knoke, 2018. "Integrated bio-economic models as tools to support land-use decision making: a review of potential and limitations," Journal of Bioeconomics, Springer, vol. 20(2), pages 183-211, July.
    9. Hahn, W. Andreas & Härtl, Fabian & Irland, Lloyd C. & Kohler, Christoph & Moshammer, Ralf & Knoke, Thomas, 2014. "Financially optimized management planning under risk aversion results in even-flow sustained timber yield," Forest Policy and Economics, Elsevier, vol. 42(C), pages 30-41.
    10. Khan, Muhammad Jawad & Atallah, Shadi S. & Kalaitzandonakes, Maria H. & Ellison, Brenna, 2022. "Consumer willingness to pay for products derived from diversified forests: the case of tree syrups," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322464, Agricultural and Applied Economics Association.

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