Quantifying the direct social and governmental costs of illegal logging in the Bolivian,Brazilian, and Peruvian Amazon

Illegal logging is a major threat to the long-term sustainability of the forest resources of much of the Amazon Basin. This threat affects the ability of companies to manage viable forest production and distorts the way in which governments are able to implement forest management regulations at all levels. However, quantitative information about the direct impacts of illegal logging is scarce. We evaluate some of the most relevant impacts of illegal logging to government and society in the Bolivian, Brazilian and Peruvian Amazon. The impacts evaluated are loss of government royalties, missed appropriation of revenues, inefficiency in logging operations, loss of productivity and unemployment. The direct costs of illegal logging in the three countries are estimated at between US$558 to 639 million per year. Unemployment due to Illegal logging, defined as the difference between the employment required for legal and illegal logging, is estimated at 1.2 million person-days per year. The magnitude of these impacts justifies additional investment in control and monitoring mechanisms. Costs of illegal logging would be considerably higher if other impacts and illegal forest activities were quantified.     

Road paving,fire regime feedbacks,and the future of Amazon forests

Fire poses the greatest threat to the forests of Amazônia. The magnitude of this threat is amplified by three positive feedback loops that drive the expansion of forest fire in the region: (1) Fire promotes drought, and therefore more fire, by releasing smoke into the atmosphere, thus reducing rainfall. Fire-assisted conversion of forests to pastures may also promote drought by increasing albedo and decreasing water vapor flux to the atmosphere, further inhibiting rainfall. (2) Fire increases the susceptibility of forests to recurrent burning by killing trees, thereby allowing sunlight to penetrate the forest interior, and increasing the fuel load on the forest floor. (3) Finally, fires also self-perpetuate by burning agricultural and forestry systems, discouraging landholders from making those fire-sensitive investments in their land that would allow them to move beyond their dependence upon fire as a management tool.The long-term reduction of Amazon fire, and its substantial costs to society, is most likely to emerge through investments and policy change that stimulate permanent agricultural and forestry production systems within existing frontiers while slowing the rate of frontier expansion. But the Brazilian government’s plan to pave, recuperate or construct 6245 km of roads in the Amazon may have the opposite effect. We present research findings that the government plan would nearly double the area of forestland that is accessible by paved highways, including 192,000 km² of fire-prone forest. Our analysis finds that these roads will stimulate 120,000–270,000 km² of additional deforestation, and forest impoverishment through logging and understory fire, if the historical relationship between road paving and forest alteration by humans continues. Infrastructural investments are urgently needed in Amazônia to help integrate isolated urban centers into the market economy, to improve the quality of life for millions of rural Amazonians, and to improve the profitability of agribusiness in Brazil’s agricultural belt. But as currently planned, these investments will have the ancillary effects of accelerating deforestation, logging, forest fire, smoke-related illness, and the displacement of small-scale farmers.     

The policy analysis of governing illegal logging: A game theory approach

Illegal logging has attracted worldwide attention, and some measures, such as timber procurement policies and timber regulations, have been taken. However, there are no studies that examine the governance of illegal logging using game theory. This paper applies game theory to analyze the subsidy policy for governing illegal logging as well as the effects of the subsidy on the benefits of suppliers and operators of forest products. The results show that controlling illegal logging has an impact on exporting enterprises, and the effects produced by subsidies and non-subsidies are different for enterprise. Enterprises that receive subsidies will occupy foreign markets and gain additional profits, while enterprises that are not subsidized will exit foreign markets. The amount of subsidies is related to enterprise’s governance cost. The benefit for operators and suppliers depend on the combination of supervision level and forest products’ legality. The critical point of regulation of operators is related to regulatory costs, the additional benefits of weak supervision of suppliers, and penalties for regulatory failure. The critical point for suppliers to select legal raw materials is related to suppliers’ operating costs, gray income, and the degree of punishment.     

Costs for thinning and final felling operations in Sweden, 2000–2017

ABSTRACT

Wood supply is one of the most significant cost items for most forest industries, and costs of forest operations and sale prices of wood is vital information for forest owners. Cost trends between 2000 and 2017 in Swedish forestry is analysed, separately for final felling and thinning, and subdivided into ordinary and salvage operations. Data on costs for operations totalling 821 million m³ harvested roundwood were analysed, both as actual costs and after adjustment for the consumer price index. Adjusted costs for ordinary harvesting operations declined between 2000 and 2007, increased during 2008 and 2009 and have since been relatively constant. Costs of salvage logging operations performed as thinning were 21% higher than ordinary thinning, and when performed as final felling costs were 64% higher than in ordinary final felling. The relative logging cost trends in Sweden and Finland were similar during the period, and there are similarities with the US. However, while logging costs in Sweden and Finland increased in 2008 and 2009, they declined in the US and did not reach the same relative level as in Sweden until 2013. Results can be used for benchmarking logging costs between regions or larger buyers of logging services.     

Determinants of Vietnam’s wood products trade: application of the gravity model

ABSTRACT

This study applied a gravity model estimation using panel data in order to analyze the impact of the determinants of Vietnam’s wood products trade from 2001 to 2016.The gravity estimates imply the importance of size of the economies, distance, level of openness of the economy, population, forest resource endowments of Vietnam’s trade partners, Vietnam’s logging restrictions policy, common border, free trade agreement, and exchange rates as determinants of Vietnam’s wood products trade. These variables were found to have different effects on the export and import of wood products. Vietnam’s access to the WTO and APEC did not help either its imports or exports in wood products. The results of this study also indicate that the Government of Vietnam needs to implement policies to increase investment in the wood processing industry, develop high quality wood materials from domestic plantations, and take advantage of trade preferences from new free trade agreements in order to promote wood product trade. The results of this study have implications for trade policy, resource-based economic development, and Vietnam’s forest resource conservation.     

The economics of timber supply: Does it pay to reduce harvest levels?

Sustained yield policies designed to ensure an even annual flow of timber harvests remain the most common approach to forest management on public lands in Canada. Such policies have been criticized on the environmental grounds that timber production is emphasized at the expense of other values, and on the economic grounds that policy-makers try to maximize the harvests level without regard for economic optimality (measured by whether or not revenues cover variable costs of production). In a case study from Northern Ontario, we used a spatially explicit harvest scheduling model to evaluate financial outputs for various scenarios, introducing different timber flow constraints, as well as varying utilization policies. We show that current policies do contribute to firms harvesting at uneconomic levels. More specifically, our results show that reducing harvest levels could increase firm profitability (measured in an increase in net revenues associated with harvesting operations). We estimate that to meet the annual allowable cut (AAC) of approximately 375,000 cubic metres (m³), the firm loses $500,000 annually (measured by the amount by which total harvesting costs exceed log values delivered at the mill). Reducing the target AAC to just under 300,000 m³ leads to a reversed situation, harvesting revenues now exceeding costs by $1.2 million annually. Dropping the even flow constraint leads to even higher annual profitability of $3.5 million, with the drawback that harvesting levels show significant variation over the 100-year planning period. Our results also show that the largest factor influencing the level of profitability is attributed to access costs (principally roading costs). In this case, other harvesting policies, such as utilization standards, may not be significant factors affecting costs in this region of Northern Ontario.     

Canopy dynamics in unlogged and logged forest stands in the eastern Amazon

Selective logging of tropical forests damages residual trees and creates canopy openings throughout the stand. In the Amazon, reduced-impact logging results in significantly less damage than conventional unplanned logging; yet either logging method leads to substantial fragmentation of the forest canopy. Increased mortality rates of trees damaged in logging have been documented. In this paper, we investigate the effect of logging disturbance on treefall rates.Using repeat inventories of canopy trees (≥35 cm dbh) in six large (≥50-ha) forest stands at two sites in the eastern Amazon, we measured mortality rates in three treatment classes: unlogged, conventionally logged (CL) and logged using reduced-impact methods (RIL). At least 3000 trees were mapped and inventoried per stand prior to timber harvests. In the second inventory, 3 years after harvests in the logged stands, all trees were located and scored as living, standing dead, uprooted or broken.We found significantly higher overall mortality rates for trees in logged forest (both CL and RIL stands) than in adjacent unlogged forest. This effect was largely due to higher rates of treefall (i.e., stems uprooted or broken from natural causes). Moreover, significantly higher treefall rates were recorded for trees in logged forest that were not damaged in the logging than for trees in unlogged stands. Treefall rates were nearly twice as high in conventionally logged forest as in forest logged using reduced-impact methods. We found indirect support for the hypothesis that increased treefall rates in logged forest are related to increased canopy opening and fragmentation through analysis of the locations of fallen trees in relation to canopy disturbance.     

Efficient and equitable forest rent capture in three pacific island nations: Opportunities and impediments in forest policy reform

Various contrasts may be observed in the way three Pacific island countries — Papua New Guinea (PNG), Solomon Islands and Vanuatu — exploit their natural forest endowments. The modes of exploitation, the efficiency of forest revenue systems and the sustainability of forest allocation mechanisms are analysed. It is argued that equity issues are also important in forest policy given that forests in all three countries are under customary tenure. The forest revenue system in PNG is criticised for being inefficient and inequitable. In the Solomons the rate of logging is found to be unsustainable, being linked to the country’s economic crisis. In Vanuatu a logging ban has stimulated timber processing, but probably at a cost to the economy, and has failed to confer sustainability on the industry. Changes to forest revenue systems and forest allocation procedures that would enhance efficiency, equity, sustainability and conservation are identified, along with impediments to these changes.     

Estimates of residual fibre supply and the impacts of new bioenergy capacity from a forest sector transportation model of the Canadian Prairie Provinces

Increasing interest in making use of forest sector processing residuals for renewable energy production has led to the need for careful analyses of fibre supply, and the ways in which existing forest sector firms could be affected by new sources of fibre demand. In this paper we present a forest sector transportation model of the three Canadian Prairie Provinces, and use the model to estimate residual fibre production, utilization and surpluses, as well as some potential forest sector impacts from bioenergy capacity additions. Under our base-case assumptions and using 2010 product prices, we estimate that 6.9 million cubic meters (round-wood equivalent) of processing residuals would be traded over the course of a year, with sawmills being the most significant source and pulp and paper mills being the most significant user. Approximately 33% of residuals would be used to produce bioenergy-related products (wood pellets, electricity sold to the grid, or internal electricity and power at pulp mills). Results show that some surpluses of processing residuals may be present in the existing supply chain, though the availability of these residuals is sensitive to lumber prices. At the same time, new bioenergy capacity itself may trigger higher sawmill output, making additional fibre available for both new and existing users. Roadside harvesting residuals are not an economically viable source of fibre under our base-case assumptions; however, their viability is sensitive to roadside processing costs and electricity prices.     

基于区间直觉模糊集的木材进口物流服务商评价与选择

自我国全面禁止天然林砍伐以来,木材进口量显著增多,木材加工业原材料价格以及物流成本居高不下,木材企业生产经营面临巨大成本压力。针对这一问题,文中建立了物流服务商评价指标体系,应用区间直觉模糊评价法构建了相应的选择评价模型,并进行实证分析。结果表明,该评价指标体系以及区间直觉模糊集法具备科学性和实用性,为木材流通领域的后续研究提供了新方法和思路,可以有效辅助我国木材行业企业选出高效物流服务商,提高其行业竞争力,从而有效推动木材行业的高质量发展。     

Post-fire salvage logging increases restoration costs in a Mediterranean mountain ecosystem

Post-fire salvage logging (i.e. felling and removing burnt trees, often eliminating the remaining woody debris) is a practice routinely performed by forest managers worldwide. In Mediterranean-type ecosystems, salvage logging is considered a measure to reduce future reforestation costs, but this assumption remains largely untested. We made a cost analysis of different management schemes, addressing the immediate post-fire burnt-wood management as well as the costs and success of subsequent reforestation efforts. Two experimental 25-ha plots were established in a burnt pine reforestation of SE Spain, in which three replicates of three post-fire treatments were applied: non-intervention (NI), partial cut plus lopping (PCL; felling and lopping off the branches from most of the trees, leaving all biomass in situ), and salvage logging (SL). After 4?years, a mechanised reforestation was undertaken, and seedling mortality was monitored for 2?years. The cost of all management operations was recorded in situ, and the cost of re-planting the dead seedlings was estimated according to the expenses of previous reforestation. Initial cost of wood management was greatest in SL and zero in NI. Reforestation cost was highest in NI and lowest in SL, and seedling-mortality rates proved lowest in PCL (43?% vs. 51?% and 52?% in SL and NI, respectively). Considering all the post-fire management operations, salvage logging did not provide particular economic advantages for forest restoration, and had an overall cost of 3,436?±?340?€/ha. By contrast, NI and PCL reduced total restoration costs by 50 and 35?%, respectively, and PCL indeed promoted restoration success. We suggest that the full cost of management operations needs to be considered when evaluating the economic implications of post-fire salvage logging.     

Energy wood resources availability and delivery cost in Northwest Russia

Availability of solid by-products from wood harvesting and mechanical wood processing was estimated as sources for energy production based on recent actual harvesting, sawmill, and plywood production in Northwest Russia at 30 million m³. Nearly 70% of the energy wood, 20 million m³, was from harvesting, consisting of non-industrial round wood, unused branches and tops, defective wood resulting from logging, and spruce stumps removed after final felling. Over 30%, 10 million m³, of the available volume was from sawmills and plywood mills, i.e. wood chips, sawdust, and bark. Due to current low utilization of energy wood for bioenergy in Northwest Russia, delivery cost of energy wood to the potential border-crossing points in Finland was analyzed for three means of transport: railways, roadways, and waterways. Nearly 28 million m³ of the energy wood could be transported by railways and 2 million m³ by roadways and waterways. The costs were lowest by roadways from the nearby border areas (10–15 €/m³ for wood processing by-products and 16–22 €/m³ for forest chips). The costs by railways varied from 12 to 27 €/m³ on shorter distances to 47–58 €/m³ on longer distances. Waterway transportation was the most expensive, about 28–48 €/m³. It should be emphasized that we have estimated availability and delivery costs of energy wood, not prices which are defined by the market based on supply and demand.     

Examining the Optimal Method to Extract Logging Residues from Small-Scale Forestry in the Nasunogahara Area,Tochigi Prefecture,Japan

This study examines the optimal method to extract logging residues from small, fragmented and scattered forests separately from the mechanized operational systems used on aggregated forestry operation sites. First, small-scale logging systems operated by a private logging contractor and an individual forest owner were investigated. Regression equations for estimating felling and processing cycle times were established as a function of stem and log volumes, respectively. Equations to estimate the forwarding and transporting cycle times were established as a function of the forwarding and transporting distances using the forwarding and transporting velocities, respectively. Then, equations to estimate productivities and costs were established with the cycle times, volumes and hourly operational expenses consisting of labour and machinery expenses. Finally, costs of the small-scale systems—mini-forwarder and 4 t truck operated by a private logging contractor, and manual logging and light truck operated by an individual forest owner—were estimated and compared with the mechanized operation system operated by the Forest Owners’ Association. The mechanized operation system was found to have the highest cost and could not compete for small forestry operational sites and small stem volumes. The small-scale systems could be effective for harvesting small areas. This was especially true when conducting extracting operations without machines, as done by the individual forest owner, and transporting operations by a private logging contractor, in which the hourly income of the individual forest owner was higher than the hourly labour expenses.     

Economies of scale in forestland acquisition costs for nature conservation

Private land trusts commonly acquire and protect forestland for nature conservation and open space preservation. When deciding where and how protection of land should be achieved (e.g., through different contracting arrangements), conservation organizations must account and plan for variation in the costs of protecting land if they are to make efficient use of the limited resources they have available. We seek to examine how the costs of protected area acquisition are affected by the size of the protected areas under a fee simple or permanent easement transaction, as well as in comparison to unprotected forest parcels. In particular, we sought to determine whether acquisition costs show economies of scale under fee simple and permanent easement transactions while controlling for the effects of other covariates and how these economies of scale are different from those of unprotected areas. We use as a case study areas acquired by The Nature Conservancy (TNC), a land trust, to protect Central and Southern Appalachian forest ecosystems of the US. We compare TNC's protected forest sites with other land transactions not purchased for conservation but that share similar characteristics as inferred by the statistical technique of propensity score matching. First, we found that fee simple transactions achieve economies of scale, whereas permanent easement transactions do not. Further, the comparison of the elasticities of acquisition costs with respect to size between the protected and unprotected areas clearly show evidence that the presence of a large conservation organization as a buyer leads to deviations from general market behavior, likely because the conservation buyer has quite different goals and preferences, including preferences tied specifically to parcel size. These differences underscore the value of further studies of this type, which focus on protected area transactions per se rather than broader market trends, if we are to account for the costs of conservation correctly when designing habitat protection programs.     

Property rights,land conflicts and deforestation in the Eastern Amazon

In the Brazilian Amazon, insecure property rights are among the main causes of land conflicts and deforestation. Through an in-depth empirical case study in Maranhao in the Eastern Amazon, this research analyzes how distorted agrarian, forest and environmental policies, laws and regulations originated insecure property rights not only over land, but also over timber, which allied to social and political factors, such as uneven distribution of land and strong organization of landless peasants, led to land conflicts and deforestation. This paper also shows that the causes of and the several actors involved in the deforestation of the Amazon were not independent, rather they were related and interact to each other. Compatibility between environmental goals and agrarian policies, regulations and laws are necessary to provide secure and clear property rights to allow a better enforcement of environmental regulations and to give actors incentives to avoid deforestation.     

Sustainable tourism and forest conservation: The case of the Belum-Temengor Rainforest Complex in Perak,Malaysia

Ecotourism is a sustainable use of forest resources, as compared to traditional uses such as logging or mining. However, whether turning forests into tourist sites can generate incomes comparable to the lucrative traditional activities is less clear. We estimated the recreational values of the Belum-Temengor Rainforest Complex (BTRC) in Perak, Malaysia, and compared it with the alternative of one-time consumptive revenues from logging. Based on data from an on-site survey of 367 visitors to BTRC, direct non-consumptive use values were computed using the individual travel cost approach and the truncated Poisson count data model. The annual direct non-consumptive use value was RM14.66 million based on the estimated number of nights spent and willingness-to-pay per trip. The future cash flows of recreation demand were RM614 million, RM970 million, and RM1.86 billion for the next 30, 50, and 100 years, respectively. Own-price, cross-price, and income elasticities of recreation demand were also computed. Visitors’ on-site travel cost, alternative-site travel cost, income, ethnicity (Malay), and marital status (Single) were associated with recreation demand. Our main conclusion is that the direct non-consumptive use values from recreation demand and other indirect use and non-use values from forest conservation exceed the one-time consumptive revenues from logging.     

A Model for comparing reduced impact logging with conventional logging for an Eastern Amazonian Forest

Using data from a logging experiment in the eastern Brazilian Amazon region, we develop a matrix growth and yield model that captures the dynamic effects of harvest system choice on forest structure and composition. Multinomial logistic regression is used to estimate the growth transition parameters for a 10-year time step, while a Poisson regression model is used to estimate recruitment parameters. The model is designed to be easily integrated with an economic model of decisionmaking to perform tropical forest policy analysis. The model is used to compare the long-run structure and composition of a stand arising from the choice of implementing either conventional logging techniques or more carefully planned and executed reduced-impact logging (RIL) techniques, contrasted against a baseline projection of an unlogged forest. Results from “log and leave” scenarios show that a stand logged according to Brazilian management requirements will require well over 120 years to recover its initial commercial volume, regardless of logging technique employed. Implementing RIL, however, accelerates this recovery. Scenarios imposing a 40-year cutting cycle raise the possibility of sustainable harvest volumes, although at significantly lower levels than is implied by current regulations. Meeting current Brazilian forest policy goals may require an increase in the planned total area of permanent production forest or the widespread adoption of silvicultural practices that increase stand recovery and volume accumulation rates after RIL harvests.     

埃塞俄比亚竹产业现状与发展机遇

埃塞俄比亚竹资源丰富,有竹林面积147万多hm²,约占全球竹林总面积的5%、非洲竹林总面积的40%。埃塞俄比亚的竹制品加工以传统作坊加工为主,工厂化生产仍处于起步阶段;竹产业发展面临着竹林缺乏经营、市场发育不良、竹产业链不完善、科研和技术推广薄弱等问题。在国际竹藤组织多年的协调努力下,特别是“中非竹子中心”的成立,埃塞俄比亚的竹产业发展迎来了前所未有的机遇。埃塞俄比亚竹资源丰富,劳动力成本低,适合发展劳动密集型的竹产业,竹制品市场需求大,同时有着良好的投资政策。因此,建议企业和投资者到埃塞俄比亚投资建厂,发展竹产业。     

Exchange rates and the competitiveness of the United States timber sector in a global economy

This article examines the competitiveness of the US timber industry under different exchange rate policies using a dynamic optimization model of global timber markets. Recent exchange rate adjustments by economies that compete with the United States in the timber sector suggest that it is important to consider how future trends in exchange rates may affect roundwood producers in the US that are already facing competitive pressures from abroad due to differences in capital and labor costs, environmental restrictions, and other factors. We assume that exchange rates affect the cost structure of harvesting and managing forests and simulate the model for baseline conditions and six additional real exchange rate policies. Two policies consider a strengthening United States dollar (US $) scenario, two policies examine weak South American currencies, and two scenarios assume a persistently weak US $. The results indicate that US competitiveness in the forestry sector is sensitive both to strong US $ policies and to the weak currency policies pursued by South American governments, as well as a weak dollar policy that is intended to improve the United States' competitiveness in the global timber market and reduce the large trade gap and account deficit. A 20% increase in value of the US $ compared to all other currencies can reduce harvests by 4–7% in the United States over the next 50 years, while a similar reduction in currency values in South America can reduce U.S. production less than 1%. A 20% devaluation of the US $ can increase annual domestic timber harvests by 2–3% and net present value of producer surplus by 3–10%.