Economics of multifunctional forestry in the Sámi people homeland region
We study forestry in the Sámi people homeland to understand an ongoing conflict between conventional forestry and maintaining forests as reindeer pastures vital for indigenous Sámi livelihood. Conventional logging affects pastures by creating stand densities suboptimal to lichen growth and by decrea...
Published in: | Journal of Environmental Economics and Management |
---|---|
Main Authors: | , |
Other Authors: | , , , , |
Format: | Article in Journal/Newspaper |
Language: | English |
Published: |
ACADEMIC PRESS INC ELSEVIER SCIENCE
2021
|
Subjects: | |
Online Access: | http://hdl.handle.net/10138/334340 |
id |
ftunivhelsihelda:oai:helda.helsinki.fi:10138/334340 |
---|---|
record_format |
openpolar |
spelling |
ftunivhelsihelda:oai:helda.helsinki.fi:10138/334340 2024-01-07T09:46:14+01:00 Economics of multifunctional forestry in the Sámi people homeland region Parkatti, Vesa-Pekka Tahvonen, Olli Department of Forest Sciences Economic-ecological optimization group Environmental and Resource Economics Helsinki Institute of Sustainability Science (HELSUS) Forest Economics, Business and Society 2021-09-14T06:17:02Z 15 application/pdf http://hdl.handle.net/10138/334340 eng eng ACADEMIC PRESS INC ELSEVIER SCIENCE 10.1016/j.jeem.2021.102542 Parkatti , V-P & Tahvonen , O 2021 , ' Economics of multifunctional forestry in the Sámi people homeland region ' , Journal of Environmental Economics and Management , vol. 110 , 102542 , pp. 102542 . https://doi.org/10.1016/j.jeem.2021.102542 85114461671 68ae9111-27cb-4e6c-aced-0acfa08a85ef http://hdl.handle.net/10138/334340 000704783800009 cc_by openAccess info:eu-repo/semantics/openAccess 1181 Ecology evolutionary biology 4112 Forestry 511 Economics Indigenous peoples Sami Continuous cover forestry Optimal rotation Carbon sequestration Reindeer husbandry Subarctic forestry Forest economics WOODLAND CARIBOU HABITAT SCOTS PINE CONTINUOUS COVER CARBON STORAGE NORWAY SPRUCE MANAGEMENT GROWTH TIMBER DECOMPOSITION Article publishedVersion 2021 ftunivhelsihelda 2023-12-14T00:01:51Z We study forestry in the Sámi people homeland to understand an ongoing conflict between conventional forestry and maintaining forests as reindeer pastures vital for indigenous Sámi livelihood. Conventional logging affects pastures by creating stand densities suboptimal to lichen growth and by decreasing old-growth forest areas, both of which are essential to reindeer survivability during the subarctic winter. Our model includes timber production, carbon sequestration, externalities on reindeer husbandry, and optimization between rotation forestry and forestry with continuous forest cover. We show that the profitability of conventional forestry relies on utilizing existing forests, an outcome we label as forest capital mining. By varying the carbon price between €0 and €60 per tCO2 and assuming a 3% interest rate, we show that continuous cover forestry, which better preserves pastures, is always optimal. A carbon price of €60 − €100 chokes off timber production. Given the present management practices and an oldgrowth forest as the initial state, the carbon choke price decreases to €14–€20. Our economic analysis on maintaining old-growth forest versus conversion to timber production is an alternative to the frequently applied approach based on carbon debts and carbon payback periods. Peer reviewed Article in Journal/Newspaper reindeer husbandry sami Sámi Subarctic HELDA – University of Helsinki Open Repository Norway Journal of Environmental Economics and Management 110 102542 |
institution |
Open Polar |
collection |
HELDA – University of Helsinki Open Repository |
op_collection_id |
ftunivhelsihelda |
language |
English |
topic |
1181 Ecology evolutionary biology 4112 Forestry 511 Economics Indigenous peoples Sami Continuous cover forestry Optimal rotation Carbon sequestration Reindeer husbandry Subarctic forestry Forest economics WOODLAND CARIBOU HABITAT SCOTS PINE CONTINUOUS COVER CARBON STORAGE NORWAY SPRUCE MANAGEMENT GROWTH TIMBER DECOMPOSITION |
spellingShingle |
1181 Ecology evolutionary biology 4112 Forestry 511 Economics Indigenous peoples Sami Continuous cover forestry Optimal rotation Carbon sequestration Reindeer husbandry Subarctic forestry Forest economics WOODLAND CARIBOU HABITAT SCOTS PINE CONTINUOUS COVER CARBON STORAGE NORWAY SPRUCE MANAGEMENT GROWTH TIMBER DECOMPOSITION Parkatti, Vesa-Pekka Tahvonen, Olli Economics of multifunctional forestry in the Sámi people homeland region |
topic_facet |
1181 Ecology evolutionary biology 4112 Forestry 511 Economics Indigenous peoples Sami Continuous cover forestry Optimal rotation Carbon sequestration Reindeer husbandry Subarctic forestry Forest economics WOODLAND CARIBOU HABITAT SCOTS PINE CONTINUOUS COVER CARBON STORAGE NORWAY SPRUCE MANAGEMENT GROWTH TIMBER DECOMPOSITION |
description |
We study forestry in the Sámi people homeland to understand an ongoing conflict between conventional forestry and maintaining forests as reindeer pastures vital for indigenous Sámi livelihood. Conventional logging affects pastures by creating stand densities suboptimal to lichen growth and by decreasing old-growth forest areas, both of which are essential to reindeer survivability during the subarctic winter. Our model includes timber production, carbon sequestration, externalities on reindeer husbandry, and optimization between rotation forestry and forestry with continuous forest cover. We show that the profitability of conventional forestry relies on utilizing existing forests, an outcome we label as forest capital mining. By varying the carbon price between €0 and €60 per tCO2 and assuming a 3% interest rate, we show that continuous cover forestry, which better preserves pastures, is always optimal. A carbon price of €60 − €100 chokes off timber production. Given the present management practices and an oldgrowth forest as the initial state, the carbon choke price decreases to €14–€20. Our economic analysis on maintaining old-growth forest versus conversion to timber production is an alternative to the frequently applied approach based on carbon debts and carbon payback periods. Peer reviewed |
author2 |
Department of Forest Sciences Economic-ecological optimization group Environmental and Resource Economics Helsinki Institute of Sustainability Science (HELSUS) Forest Economics, Business and Society |
format |
Article in Journal/Newspaper |
author |
Parkatti, Vesa-Pekka Tahvonen, Olli |
author_facet |
Parkatti, Vesa-Pekka Tahvonen, Olli |
author_sort |
Parkatti, Vesa-Pekka |
title |
Economics of multifunctional forestry in the Sámi people homeland region |
title_short |
Economics of multifunctional forestry in the Sámi people homeland region |
title_full |
Economics of multifunctional forestry in the Sámi people homeland region |
title_fullStr |
Economics of multifunctional forestry in the Sámi people homeland region |
title_full_unstemmed |
Economics of multifunctional forestry in the Sámi people homeland region |
title_sort |
economics of multifunctional forestry in the sámi people homeland region |
publisher |
ACADEMIC PRESS INC ELSEVIER SCIENCE |
publishDate |
2021 |
url |
http://hdl.handle.net/10138/334340 |
geographic |
Norway |
geographic_facet |
Norway |
genre |
reindeer husbandry sami Sámi Subarctic |
genre_facet |
reindeer husbandry sami Sámi Subarctic |
op_relation |
10.1016/j.jeem.2021.102542 Parkatti , V-P & Tahvonen , O 2021 , ' Economics of multifunctional forestry in the Sámi people homeland region ' , Journal of Environmental Economics and Management , vol. 110 , 102542 , pp. 102542 . https://doi.org/10.1016/j.jeem.2021.102542 85114461671 68ae9111-27cb-4e6c-aced-0acfa08a85ef http://hdl.handle.net/10138/334340 000704783800009 |
op_rights |
cc_by openAccess info:eu-repo/semantics/openAccess |
container_title |
Journal of Environmental Economics and Management |
container_volume |
110 |
container_start_page |
102542 |
_version_ |
1787427971026386944 |