Composition diversification vs. structure diversification: How to conciliate timber production and carbon sequestration objectives under drought and windstorm risks in forest ecosystems

Abstract

This article aims to compare different forest adaptation strategies from an economic perspective with the objective to reduce extreme drought- and windstorm-induced risks of dieback. In this study, two diversification strategies were analysed. The first one was composition-based and consisted of mixing beech with oak whereas the second one relies on a diversification of the structure through a shift from the even-aged to the uneven-aged structure. We tested the efficiency of these two strategies individually and then combined through a simulation study in which we evaluated the financial loss and the reduction of carbon sequestration capacity. We combined a forest growth model computing Monte Carlo simulations with a forest economic approach using the land expectation value (LEV) adapted for a stochastic setting. The maximisation of the LEV criterion made it possible to identify the most economically effective adaptation strategies. Results show that diversification increases timber production and LEV, but reduces carbon storage. The two risks as well as the adaptation strategies show some synergies. Trade-offs between the financial balance and the carbon balance (i.e., adaptation vs. mitigation) are achievable. Valuing carbon services in addition to timber ones increases the forest value. Finally, our study presents a new approach for the economic valuation of multi-risk forest management, highlighting the importance of investigating several risks in a common analysis rather than separately.

Keywords: Adaptation; Climate change; Mixed forests; Economics; Multi-risks

ID: 3482550