The cost of risk management and multifunctionality in forestry: a simulation approach for a case study area in Southeast Germany

Forest management faces growing uncertainty concerning environmental conditions and demand for ecosystem services. To help forest managers consider uncertainty, we applied a robust and multi-criteria approach to select the optimal composition of a forest enterprise from 12 stand types. In our simulation, the forest enterprise strives for either financial return or a multi-criteria forest management considering financial return, carbon storage and forest ecosystem stability. To quantify the influence of climate change on these decision criteria, we used the concept of analogous climate zones. Our results provide recommendations for long-term strategies for tree species selection in a Southeast German forest enterprise. The results show that considering both uncertainty and multifunctionality in forest management led to more diversified forest compositions. However, robust and multi-criteria optimisation required the forest enterprise to pay a premium in terms of lower income. Financial returns decreased when forest composition accounted for uncertainty or multiple objectives. We also found that adaptation measures could only partly financially compensate the effects of climate change. As the study is limited to two tree species, including additional tree species, variants of mixing proportions and further silvicultural strategies in the optimisation appears a promising avenue for future research.