Risk Aversion and Timber Harvest Strategies: A Case Study of Nonindustrial Private Forest Management in Louisiana

Forest owners face many challenges regarding forest management due to the long period from planting to harvest. Along with the economic and environmental factors that influence management actions, the owners' attitude to risk plays a crucial role in forest management decisions. This study shows that understanding the effects of the owner's risk preference for management actions is an important step to form an effective forest policy. The objectives of the study are to (1) assess the economic advantage of forest management alternatives over a range of risk aversion coefficients and (2) determine the financial incentive (risk premium) corresponding to a forest owners' risk attitude. We implemented the stochastic efficiency with respect to a function framework to evaluate a set of fertilization, herbicide, and thinning management alternatives at mid-rotation loblolly pine plantations in Louisiana. Results from this study indicate that forest owner's risk preference affects their decision to select management actions. Financial incentives are substantially different for specific management alternatives between risk-neutral and risk-averse forest owners. The results can guide forest policy development where agencies can modify financial assistance programs to improve the adoption of management actions.

Female forest owners as a market segment? Results from a marketing experiment in the context of a small forest service enterprise

Broad social changes are reflected in the forest owner structure, which has become increasingly diverse both demographically and in terms of objectives and values. This naturally also impacts forest owners’ interest towards using their forests as well as to their interest in purchasing various forest management services. This development highlights the need for service providers to better segment their clientele and plan their market communication accordingly. However, a surprisingly small amount of research has focused on the impact of marketing arguments for various forest owner segments. This study provides a first attempt to analyse, through a real-life marketing intervention, how effective marketing arguments are at promoting first thinning to female forest owners. For this, three marketing messages were created and sent out to 300 forest owners in Finland. One message explained the importance of first thinning to provide maximal economic income from forests, one explained the importance of first thinning in relation to biodiversity protection and climate change mitigation, and a control message included no value arguments. The results indicate that contrary to our hypothesis, the marketing message with the economic arguments raised more interest towards the first thinning service among female forest owners than the one with biodiversity protection and climate change mitigation values. The results further show that the control message was found to generate the least interest towards first thinning. This indicates that incorporating value arguments do improve the impact of a marketing message. Key words Market segmentation, female forest owner, marketing argument, economic values, biodiversity values

Participativni pristop pri pripravi upravljavskih načrtov na primeru izbranih gozdnih habitatnih tipov in živalskih vrst ob Muri

For Natura 2000 areas, the European Commission proposes the drafting of management plans that include site-specific objectives and conservation measures based thereon. In order to avoid potential subsequent conflicts, the process needs to involve all stakeholders early on and in a sensible manner. In the framework of the project GoForMura, management plans for the Natura 2000 forest sites in the study areas of Gornja Bistrica and Murska Šuma in the Prekmurje region were drafted as model plans. The participation of stakeholders, in particular forest owners and managers, was given special attention in the drafting of what were the first such documents.

Review of Policy Instruments for Climate-Smart Mountain Forestry

Implementing the Climate-Smart Forestry (CSF) concept into practice requires interaction among key stakeholders, especially forest owners and managers, policymakers (or regulators in general), forest consultants, and forest users. But what could be the most effective policy instruments to achieve climate smartness in mountain forests? Which ones would be the most acceptable for forest owners? And for the local forest communities? Should they be designed and implemented with the use of participatory approaches or rather on a top-down basis? This chapter summarizes key policy instruments structured in three subsequent categories: command-and-control, voluntary market-based instruments, and community cooperation. It provides examples of their functioning in the forestry sector and discusses their suitability for the implementation of climate smart forestry. It appears that there are many policy instruments used with varying degrees of success such as forest concessions or voluntary certification schemes. A wide range of instruments are responding to direct regulation; this has been seen as insufficient to deal with natural hazards and calamities.