Economic determinants of private afforestation in the Republic of Ireland

McCarthy, Siobhán; Matthews, Alan; Riordan, B.

doi:10.1016/s0264-8377(02)00052-2

Cited by 39 publications

(20 citation statements)

References 2 publications

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“…This time frame was regarded as sufficient because EU funds will be available in the first 15 years of the project, additional outflows will not be incurred in years [16][17][18][19], and maintenance expenditures will appear in year 20. Beginning in year 13, when maintenance expenditures will be incurred (late brushing), NCFs will be identical for each scenario.…”

Section: Case Study-detailed Assumptions and Resultsmentioning

confidence: 99%

“…They are often based on the results of surveys addressing farmers, who are asked to describe the key drivers and the main obstacles in the afforestation process [16,20,21,30], or institutions supporting afforestation schemes [19]. Regression models are developed, and marginal effects of forestry subsidies are calculated [18]. Scientists investigate the correlations between afforestation and biomass utilization in the economy [31,32].…”

Section: Discussionmentioning

confidence: 99%

“…In the US, forestry incentive programs come generally in two broad categories: financial assistance (from preferential tax treatment to cost sharing) and technical assistance (consultants) [17]. In Ireland, the introduction of government and EU incentives for woodland creation in the 1980s contributed to an increase in afforestation rates [18]. Most new forests were planted on land that had been used for agricultural purposes.…”

Section: Decision Making Process On Afforestationmentioning

confidence: 99%

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Financial Dilemmas Associated with the Afforestation of Low-Productivity Farmland in Poland

Źróbek-Różańska

Nowak

et al. 2014

Forests

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Abstract:In Poland, 82% of forests are State-owned, and only 17% of forests constitute private property. Each year, forests are converted to other land-use types, mainly for road construction. The afforestation rate on privately-owned low-productivity land is decreasing steadily. The owners and perpetual usufructuaries of this kind of land are eligible to government subsidies to cover establishment expenditures in whole or in part, provided that the afforestation scheme complies with the local zoning plan or an outline planning permission. The above creates a dilemma for farmers-is this a profitable option of managing low-productivity land? Owners of small farms particularly often face such dilemmas. Owners of small farms, which consist of low-yield agricultural land, can be regarded as investors operating on the real estate market, but those investors have features characteristic of agricultural producers. This study relied on the net present value (NPV) criterion, which is popularly used to assess the effectiveness of investments on the real estate market. A financial feasibility assessment performed with the use of such method in view of afforestation statistics and the 5% discount rate on the Polish forest market OPEN ACCESSForests 2014, 5 2847 revealed the highest increase in net cumulative cash flows in the first five years, followed by a gradual decrease in successive years. The first negative cash flow was reported in year 20. NPV would remain negative because farmers would be charged with periodic maintenance expenditures until the stand reaches harvestable age at approximately 40 years. The longer the investment period, the lower the profits, even if discount rate is excluded. Investments of the type are difficult to terminate because forests younger than 20 years are difficult to sell at a price that covers growing outflows. Afforestation projects are also influenced by other economic and non-economic factors. The paper validates the research hypothesis that afforestation is a long-term investment that delivers benefits for future generations.

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Section: Case Study-detailed Assumptions and Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Decision Making Process On Afforestationmentioning

confidence: 99%

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Financial Dilemmas Associated with the Afforestation of Low-Productivity Farmland in Poland

Źróbek-Różańska

Nowak

et al. 2014

Forests

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“…Land conversion to forest by private land-owners is a complex issue with multiple underlying causes, including, but not limited to, the incentives and restrictions of state policies (Beach et al, 2005). The effects of policy changes and market conditions on afforestation rates in Ireland have been explored using time-series and panel data (McKillop and Kula, 1987;McCarthy et al, 2003). In general such studies find that the profitability of agriculture and forestry are significant factors in determining afforestation rates.…”

Section: Land Conversion To Forestrymentioning

confidence: 99%

“…Researchers have examined afforestation in Ireland on the county level but failed to account for the spatial nature of the data in the modelling process or the physical characteristics of the land (McCarthy et al, 2003). Examinations of private afforestation in Ireland have shown that land quality is a defining aspect of the decision-making process by farmers (Ni Dhubhain and Gardiner, 1994;Howley et al, 2012).…”

Section: Land Conversion To Forestrymentioning

confidence: 99%

The physical, economic and policy drivers of land conversion to forestry in Ireland

Upton

O’Donoghue

Ryan

2014

Journal of Environmental Management

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Land use change is fundamentally a product of the interaction of physical land characteristics, economic considerations and agricultural and environmental policies.Researchers are increasingly combining physical and socio-economic spatial data to investigate the drivers of land-use change in relation to policy and economic developments. Focusing on Ireland, this study develops a panel data set of annual afforestation over 2811 small-area boundaries between 1993 and 2007 from vector and raster data sources. Soil type and other physical characteristics are combined with the net returns of converting agricultural land to forestry, based on the microsimulation of individual farm incomes, to investigate land conversion. A spatial econometric approach is adopted to model the data and a range of physical, economic and policy factors are identified as having a significant effect on afforestation rates. In addition to the financial returns, the availability and quality of land and the implementation of environmental protection policies are identified as important factors in land conversion. The implications of these factors for the goal of forest expansion are discussed in relation to conflicting current and future land use policies.

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Review of Policy Instruments for Climate-Smart Mountain Forestry

Dubová

Slavíková

Azevedo

et al. 2021

Climate-Smart Forestry in Mountain Regions

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Implementing the Climate-Smart Forestry (CSF) concept into practice requires interaction among key stakeholders, especially forest owners and managers, policymakers (or regulators in general), forest consultants, and forest users. But what could be the most effective policy instruments to achieve climate smartness in mountain forests? Which ones would be the most acceptable for forest owners? And for the local forest communities? Should they be designed and implemented with the use of participatory approaches or rather on a top-down basis? This chapter summarizes key policy instruments structured in three subsequent categories: command-and-control, voluntary market-based instruments, and community cooperation. It provides examples of their functioning in the forestry sector and discusses their suitability for the implementation of climate smart forestry. It appears that there are many policy instruments used with varying degrees of success such as forest concessions or voluntary certification schemes. A wide range of instruments are responding to direct regulation; this has been seen as insufficient to deal with natural hazards and calamities.

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Economic determinants of private afforestation in the Republic of Ireland

Cited by 39 publications

References 2 publications

Financial Dilemmas Associated with the Afforestation of Low-Productivity Farmland in Poland

Financial Dilemmas Associated with the Afforestation of Low-Productivity Farmland in Poland

The physical, economic and policy drivers of land conversion to forestry in Ireland

Review of Policy Instruments for Climate-Smart Mountain Forestry

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