Transcript Valuing Non-Timber Benefits of forests in a Changing Climate

Valuing the Non-Timber Benefits
of Forests in a Changing Climate
PRESENTATION TO THE INFF CONFERENCE
NOVEMBER 5TH, 2007 CORK, IRELAND
Dr Douglas C MacMillan
Valuing Non-Timber Benefits of
forests in a Changing Climate
OUTLINE OF TALK
I.
VALUING NON-TIMBER BENEFITS
II.
WILLIS REPORT TO THE UK FORESTRY COMMISSION
III.
FORESTRY IN A CHANGING CLIMATE
IV.
CAPTURING VALUES
V.
FINAL THOUGHTS
Valuing Non-Timber Benefits
Valuing Non-Timber Benefits
Economic value are anthropocentric - based
on the values of humans for resources.
Economic values reflect people’s
preferences.
Economic values are normally measured in
monetary units
Valuing Non-Timber Benefits
Total Economic Value
Use
Values
Direct
Use
timber
recreation
Indirect
Use
carbon
Non-Use
Values
Bequest Existence
Valuation Methods
Category
Method
Timber
Market Prices
Recreation
Travel Cost Method
Landscape
Biodiversity
Hedonic Pricing
Contingent Valuation
Carbon storage
Damage Cost Avoided
Value of Carbon

Rapid climate change will lead to higher costs (flooding,
gale damage, farm & forestry crops)

Value of Carbon sequestered:



avoided costs due to reduced environmental change
costs include avoided expenditures and avoided losses (ranging
from profits to habitats)
Difficult to predict and value as climate changes are
uncertain/complex and response to change more so
Willis study 2003
Value of social & environmental benefits of forests in the UK
(from Willis et al 2003)
Benefit
Annual
Capitalised
£ millions at 2002 values
Recreation
Landscape
Biodiversity
393
150
386
11218
4292
11029
Carbon Storage
Air pollution
TOTAL
94
0.4
1023
2876
11
29226
Willis study 2003
SOCIAL & ENVIRONMENTAL BENEFITS:
£1023 MILLION PER ANNUM
NET TIMBER REVENUES:
£50-100 MILLION PER ANNUM
Study based on current forest type and age
distribution
Forestry in a Changing Climate
Climate for growing trees is changing in ‘3d’:
environmental, economic and governance
Environmental
Economic
Governance
Forestry in a Changing Climate
Environmental Change:
We have ‘over-specialised’ and ‘over-optimised’
often on shaky forecasts of what our future
needs will be
Need to create diversity in terms of species,
age class and sites for woodlands
Forestry in a Changing Climate
Economic Change:
New markets: Carbon trading and biodiversity
trading
High Quality markets:
fuel costs & overseas competition will
undermine economics of low quality timber
Indirect benefits: Forests can contribute to tourism &
local economic development
Forestry in a Changing Climate
Governance:
Shift from direct ‘cost subsidies’ (planting grants)
to direct payment for services (carbon, biodiversity)
New or modified ownership structures for post–
industrial forests
More flexible and locally responsive management
to maximise benefits
Organisational economies of scale required
Future forest practice and
management
Timber only one income stream
Shift from short rotation, low management cycles
to longer rotations, more interventions (e.g.
thinnings)
Create a more diversified forests in terms of age
class and species
Strong economic case based on carbon retention,
high quality timber and environmental services
Climate Change is an
Opportunity for Change
– seize it!