Аналіз витрат і вигід процесу лісовідновлення в умовах Малого Полісся [Cost-benefit analysis of reforestation process: Male Polissya as case study]
Journal Title: Наукові праці Лісівничої академії наук України - Year 2016, Vol 14, Issue
Abstract
Application of cost-benefit analysis for economic assessment of reforestation projects was substantiated. Cost-benefit analysis was conducted for a case study of a pine stand with artificial origin in conditions of Male Polissya (North of Ukraine) forest enterprises. Integrated assessment of reforestation efficiency was based on the concept of total economic value and provided an estimation of direct, indirect and option use values of forest resources, as well as existence value. Benefits of a reforestation project were identified using ecosystem services framework and Common International Classification of Ecosystem Services (CICES, v. 4.1). Commercial evaluation of reforestation efficiency was done taking into account market value of costs and revenues. In economic assessment of reforestation project an economic efficiency was estimated using total economic value of forest ecosystems services, namely value of non-wood products (Provisioning services), water protection and water regulating capacity of forest ecosystems, prevention of soil erosion, carbon sequestration (Regulation & Maintenance services) and existence value of forests ecosystems for future generations (Cultural services according to CICES, v. 4.1 classification trinomial scheme). Our calculations shown that in economic analysis net present value of a reforestation project is 25 times higher than for commercial analysis. Payback period decreased from 80 years to 5years. According to economic analysis, attractiveness of the project was much higher. Sensitivity analysis of commercial efficiency analysis shown that both analyzed factors – the discount rate and value of forest products – were critical for the project, while for economic analysis none of the selected for sensitivity analysis factors – the rate of discount, price of round timber, price of carbon sequestration, estimation of willingness to pay for restoration of forests for the benefits of future generations – was critical to the project. Afforestation and reforestation projects have a lot of positive externalities usually not reflected by market prices and therefore omitted by economic performance indicators. The observed difference in the estimations confirms a need for application of cost-benefit framework for a holistic evaluation of reforestation efficiency for the sake of a more intense stimulation of this activity in conditions of climate change.
Authors and Affiliations
Ludmyla Zahvoyska, Іiuliia Shvediuk
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