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Temperate Forest Economics  

Roger Sedjo

The world’s forest cover is approximately 4 billion hectares (10 billion acres). Of this total, approximately one-half is temperate forests. These range from the subtropics to roughly 65 degrees in latitude. As we move toward the equator, the forests would generally be considered tropical or subtropical, while forest above the 65th latitude might be considered boreal. Only a relatively small fraction of the forests that are temperate are managed in any significant manner. The major types of management can vary from serious forest protection to selective harvesting, with considerations for regeneration. Intensive forestry exists in the form of plantation forestry and is similar to agricultural cropping. Seedlings are planted, and the trees are managed in various ways while growing (e.g. fertilizers, herbicides, thinnings) and then harvested at a mature age. Typically, the cycle of planting and management then begins anew. Approximately 200 million hectares of forests are managed beyond simply minimal protection and natural regeneration. Recent estimates suggest that over 100 million hectares globally are intensively managed planted forests. The largest representatives of these forests are found in the Northern Hemisphere (e.g., the United States), China, and various countries of Europe, especially the Nordic countries. However, Brazil, Chile, New Zealand, and Australia are important producers while being in the Southern Hemisphere. A high percentage of managed forests are designed to produce industrial wood for construction and for pulp and paper production. Finally, in some countries like China, planted forests are intended to replace forests destroyed decades and even centuries ago. Many of these planted forests are intended to provide environmental services, including water capture and control, erosion control and soil protection, flood control, and habitat for wild life. Recently, forests are being considered as a vehicle to help control global warming. In addition, afforestation and/or reforestation may help address damages after a disturbance such as a fire. In China, the “green wall” has been established to prevent shoreline erosion in major coastal areas.


Interface Urban Forest Management in an Urbanizing Landscape  

Maria A. Cunha-e-Sá and Sofia F. Franco

Although forests located near urban areas are a small fraction of the forest cover, a good understanding of the extent to which —wildland-urban interface (WUI) forest conversion affects local economies and environmental services can help policy-makers harmonize urban development and environmental preservation at this interface, with positive impact on the welfare of local communities. A growing part of the forest resource worldwide has come under urban influence, both directly (i.e., becoming incorporated into the interface or located at the interface with urban areas) and indirectly (as urban uses and values have come to dominate more remote forest areas). Yet forestry has been rather hesitant to recognize its urban mandate. Even if the decision to convert land at the WUI (agriculture, fruit, timber, or rural use) into an alternative use (residential and commercial development) is conditional on the relative magnitude and timing of the returns of alternative land uses, urban forestry is still firmly rooted in the same basic concepts of traditional forestry. This in turn neglects features characterizing this type of forestland, such as the urban influences from increasingly land-consumptive development patterns. Moreover, interface timber production-allocated land provides public goods that otherwise would be permanently lost if land were converted to an irreversible use. Any framework discussing WUI optimal rotation periods and conversion dates should then incorporate the urban dimension in the forester problem. It must reflect the factors that influence both urban and forestry uses and account for the fact that some types of land use conversion are irreversible. The goal is to present a framework that serves as a first step in explaining the trends in the use and management of private land for timber production in an urbanizing environment. Our framework integrates different land uses to understand two questions: given that most of the WUI land use change is irreversible and forestry at this interface differs from classic forestry, how does urban forestry build upon and benefit from traditional forestry concepts and approaches? In particular, what are the implications for the Faustmann harvesting strategy when conversion to an irreversible land use occurs at some point in the future? The article begins with a short background on the worldwide trend of forestland conversion at the WUI, focusing mostly on the case of developed countries. This provides a context for the theoretical framework used in the subsequent analysis of how urban factors affect regeneration and conversion dates. The article further reviews theoretical models of forest management practices that have considered either land sale following clear-cutting or a switch to a more profitable alternative land use without selling the land. A brief discussion on the studies with a generalization of the classic Faustmann formula for land expectation value is also included. For completeness, comparative statics results and a numerical illustration of the main findings from the private landowner framework are included.


Ecosystem Management of the Boreal Forest  

Timo Kuuluvainen

Boreal countries are rich in forest resources, and for their area, they produce a disproportionally large share of the lumber, pulp, and paper bound for the global market. These countries have long-standing strong traditions in forestry education and institutions, as well as in timber-oriented forest management. However, global change, together with evolving societal values and demands, are challenging traditional forest management approaches. In particular, plantation-type management, where wood is harvested with short cutting cycles relative to the natural time span of stand development, has been criticized. Such management practices create landscapes composed of mosaics of young, even-aged, and structurally homogeneous stands, with scarcity of old trees and deadwood. In contrast, natural forest landscapes are characterized by the presence of old large trees, uneven-aged stand structures, abundant deadwood, and high overall structural diversity. The differences between managed and unmanaged forests result from the fundamental differences in the disturbance regimes of managed versus unmanaged forests. Declines in managed forest biodiversity and structural complexity, combined with rapidly changing climatic conditions, pose a risk to forest health, and hence, to the long-term maintenance of biodiversity and provisioning of important ecosystem goods and services. The application of ecosystem management in boreal forestry calls for a transition from plantation-type forestry toward more diversified management inspired by natural forest structure and dynamics.


Conservation in the Amazon: Evolution and Situation  

Marc Dourojeanni

In 1945 the Amazon biome was almost intact. Marks of ancient cultural developments in Andean and lowland Amazon had cicatrized and the impacts of rubber and more recent resources exploitation were reversible. Very few roads existed, and only on the Amazon’s periphery. However, from the 1950s, but especially in the 1960s, Brazil and some Andean countries launched ambitious road-building and colonization processes. Amazon occupation heavily intensified in the 1970s when forest losses began to raise worldwide concern. More roads continued to be built at a geometrically growing pace in every following decade, multiplying correlated deforestation and forest degradation. A no-return point was reached when interoceanic roads crossed the Brazilian-Andean border in the 2000s, exposing remaining safe havens for indigenous people and nature. It is commonly estimated that today no less than 18% of the forest has been substituted by agriculture and that over 60% of that remaining has been significantly degraded. Theories regarding the importance of biogeochemical cycles have been developed since the 1970s. The confirmation of the role of the Amazon as a carbon sink added some international pressure for its protection. But, in general, the many scientific discoveries regarding the Amazon have not helped to improve its conservation. Instead, a combination of new agricultural technologies, anthropocentric philosophies, and economic changes strongly promoted forest clearing. Since the 1980s and as of today Amazon conservation efforts have been increasingly diversified, covering five theoretically complementary strategies: (a) more, larger, and better-managed protected areas; (b) more and larger indigenous territories; (c) a series of “sustainable-use” options such as “community-based conservation,” sustainable forestry, and agroforestry; (d) financing of conservation through debt swaps and climate change’s related financial mechanisms; and (e) better legislation and monitoring. Only five small protected areas have existed in the Amazon since the early 1960s but, responding to the road-building boom of the 1970s, several larger patches aiming at conserving viable samples of biological diversity were set aside, principally in Brazil and Peru. Today around 22% of the Amazon is protected but almost half of such areas correspond to categories that allow human presence and resources exploitation, and there is no effective management. Another 28% or more pertains to indigenous people who may or may not conserve the forest. Both types of areas together cover over 45% of the Amazon. None of the strategies, either alone or in conjunction, have fully achieved their objectives, while development pressures and threats multiply as roads and deforestation continue relentlessly, with increasing funding by multilateral and national banks and due to the influence of transnational enterprises. The future is likely to see unprecedented agriculture expansion and corresponding intensification of deforestation and forest degradation even in protected areas and indigenous land. Additionally, the upper portion of the Amazon basin will be impacted by new, larger hydraulic works. Mining, formal as well as illegal, will increase and spread. Policymakers of Amazon countries still view the region as an area in which to expand conventional development while the South American population continues to be mostly indifferent to Amazon conservation.