Economics of multifunctional forestry in the Sámi people homeland region

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http://hdl.handle.net/10138/334340

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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

Title: Economics of multifunctional forestry in the Sámi people homeland region
Author: Parkatti, Vesa-Pekka; Tahvonen, Olli
Contributor organization: Department of Forest Sciences
Economic-ecological optimization group
Environmental and Resource Economics
Helsinki Institute of Sustainability Science (HELSUS)
Forest Economics, Business and Society
Date: 2021-10
Language: eng
Number of pages: 15
Belongs to series: Journal of Environmental Economics and Management
ISSN: 0095-0696
DOI: https://doi.org/10.1016/j.jeem.2021.102542
URI: http://hdl.handle.net/10138/334340
Abstract: 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.
Subject: 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
REINDEER HUSBANDRY
CONTINUOUS COVER
CARBON STORAGE
NORWAY SPRUCE
MANAGEMENT
GROWTH
TIMBER
DECOMPOSITION
Peer reviewed: Yes
Rights: cc_by
Usage restriction: openAccess
Self-archived version: publishedVersion


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