Biotechnical portfolio management of mixed-species forests

Brunette, Marielle; Dragicevic, Arnaud; Lenglet, Jonathan; Niedzwiedz, Alexandra; Badeau, Vincent; Dupouey, Jean‐Luc

doi:10.1007/s10818-017-9247-x

Cited by 9 publications

(7 citation statements)

References 45 publications

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“…The diversification effect of combined investments in monospecific stands of Norway spruce and European beech was analyzed by Knoke et al [1,2], reporting a significant risk reduction for different investment proportions, but the complementarity effect of both species growing together in a mixed stand was not considered. As mentioned in the Introduction section, other studies have also addressed the trade-off between productivity and risk of mixed-species forests, incorporating to the analysis the effect of climate change, natural hazards or silvicultural treatments [11][12][13][14], but none of them has considered the effect of tree species interactions on productivity.…”

Section: Discussionmentioning

confidence: 99%

“…Brunette et al [13] applied portfolio selection theory to determine the optimal productivity-risk combinations of tree species in the French administrative departments. Instead of using Monte Carlo simulations, they used historical data on productivity from the French National Forest Inventory to simulate the portfolio selection, and used a biotechnical indicator such as productivity instead of financial return in the optimization process.…”

Section: Introductionmentioning

confidence: 99%

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Effect of Species Complementarity on Financial Return in Mixed Stands of European Beech and Scots Pine in Northern Spain

García-Robredo

2018

Forests

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The research on mixed-species forestry has rapidly increased in recent decades because there is a growing interest in these types of stands for environmental reasons. Their positive influence on ecosystem biodiversity, stability and resilience, as well as their role in the new challenge brought up by the adaptation to global change, have been the object of many research works. However, the economic implications of mixed-species forest management have not deserved the same attention. The objective of this work is to study the effect of species interactions on productivity, and to economically assess this effect. This research is focused on the analysis of financial return and risk in even aged mixed stands of Pinus sylvestris and Fagus sylvatica in Northern Spain. Growth and yield projections for monospecific and mixed stands of Scots pine and European beech were made by means of a previous model developed from a set of the Spanish National Forest Inventory plots in the region of Navarre. Data from yield tables for both species were used. The effect of species proportion on total stand yield was assessed and transgressive overyielding was found for some mixing ratios. A data series on average stumpage price for both species in Spain over a 29-year period was compiled and the joint probability distribution of price data was used to generate 500 price scenarios. Different management alternatives based on species proportion and rotation age were considered and evaluated in terms of profitability and risk. Some management recommendations can be derived from the results obtained, which point at an optimum mixing ratio from 30% to 40% Scots pine and 70% to 60% European beech.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Effect of Species Complementarity on Financial Return in Mixed Stands of European Beech and Scots Pine in Northern Spain

García-Robredo

2018

Forests

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“…stocks or bonds) in order to maximize the portfolio financial return (Thomson, 1991;Wan et al, 2015). Alternatively, the M-V model has been employed as a decision aid tool to deal with risk and uncertainty, with a portfolio of tree species covered either at the stand level (Knoke et al, 2008;Knoke, 2008;Roessiger et al, 2011), the management level (Knoke et al, 2005;Neuner et al, 2013), or at the regional level (Brunette et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Most of the studies aforementioned are based on Historical Distribution Analysis (HDA), using Monte Carlo simulations. Contrariwise, this paper follows the work by Brunette et al (2014) and uses a Historical Burn Analysis (HBA): on the basis of the historical data issued from the French National Forest Inventory (IGN), we build a portfolio dependent on the productivities of tree species and their variances, the latter reflecting the production risk. While our model considers three objectives that can be assigned to forest ecosystems (Wood Production -WP, Carbon Sequestration -CS, Economic Value -EV), the optimization has been conducted using species and department specific historical observations of tree growth.…”

Section: Introductionmentioning

confidence: 99%

“…This paper builds on the study by Brunette et al (2014) and extends the Markowitz portfolio selection, within the silvicultural framework: (a) for different levels of risk aversion exhibited by forest managers; (b) for different climate change scenarios during the optimal allocation; (c) to different maximization objectives, such that WP is compared with CS and EV.…”

Section: Introductionmentioning

confidence: 99%

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Forest planning and productivity-risk trade-off through the Markowitz mean-variance model

Dragicevic

Lobianco

Leblois

2016

Forest Policy and Economics

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Building forests for the future

MacKenzie,

Ullah,

Foyer

2024

Food and Energy Security

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Many governments have set ambitious targets for tree planting and increased woodland cover as a key part of actions to reach net‐zero carbon emissions by 2050. However, many uncertainties remain concerning how and where to expand tree cover, what species to plant, and how best to manage new plantations. Much contemporary forestry has been based on even‐aged monocultures, largely because of perceived advantages for timber production. However, in order to play a key role in climate change mitigation future forests will have to achieve timber production (and wider ecosystem service provision) alongside resilience to biotic and abiotic challenge. It is therefore crucial that appropriate informed decisions are made with regard to the structure, composition, and planning of future forests, in order to provide sustainable solutions that provide environmental, economic, and health benefits to society. Genetically diverse, mixed, and irregular forests, with their higher biodiversity and niche complementarity, are promising new forest configurations for regulating the water cycle, storing carbon, and delivering other goods and services. In the following discussion, we have used UK information to illustrate the benefits of mixed woodland versus monocultures and highlighted current issues related to government initiatives and policies for current and future forests. However, similar issues and problems are encountered globally.

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Biotechnical portfolio management of mixed-species forests

Cited by 9 publications

References 45 publications

Effect of Species Complementarity on Financial Return in Mixed Stands of European Beech and Scots Pine in Northern Spain

Effect of Species Complementarity on Financial Return in Mixed Stands of European Beech and Scots Pine in Northern Spain

Forest planning and productivity-risk trade-off through the Markowitz mean-variance model

Building forests for the future

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