Monetary compensation for changing forest management practices to increase water availability in Georgia, United States

Abstract

Forests provide many ecological services, including carbon sequestration, biofuel provision, and recreation, yet the influence of forests on water resources is still often debated. While increased forest cover is generally associated with greater water quality, the value-added component of enhanced water services associated with reduced forest cover is less understood. At the same time, ensuring adequate water supplies remain a common goal of many natural resource managers due to growing concerns over freshwater security. This study derives a baseline of willingness-to-accept (WTA) estimates to supply water flows by investigating the behavior of tree farm owners in Georgia, United States. Little is known about landowner preferences among incentives related to the adoption of different silvicultural practices to increase downstream water yields. A discrete choice experiment was designed to ascertain monetary compensation amounts required to alter established planting densities and thinning intensities likely to result in increased water yields. Results show that landowners may adopt such forest management strategies if appropriately compensated. Specifically, landowners on average, desired approximately $0.06 to $0.19 more per acre per year for every unit decrease in planting density. These are significant findings given that existing relevant stakeholders on the ‘consumer’ side may be ready and willing to fund such practices. We hope our study can contribute towards establishing market-based incentives for private forest landowners to encourage the conservation and improvement of forested watersheds in Georgia and beyond.