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European Journal of Forest Research

, Volume 133, Issue 4, pp 611–622 | Cite as

Economic assessment of use values of near-natural forestry compared with rotational forestry in Denmark

  • Dareskedar Workie AmsaluEmail author
  • Jette Bredahl Jacobsen
  • Thomas Hedemark Lundhede
Original Paper

Abstract

The present study is a cost-benefit analysis of converting the current rotational forestry (RF) of Norway spruce stand into near-natural forestry (NNF) of beech, based on two representative soil conditions and visitors popular case areas in Denmark, considering welfare economic values of timber, recreation provision, and groundwater recharge. The study answers the major research question of how large the welfare economic values of recreation and groundwater benefits of the conversion are as compared with timber benefits. The net present values (NPV) of the benefits were calculated for an infinite time horizon at a 3 % discount rate. The results reveal that converting into NNF would result in a NPV of at least 6,832 € ha−1 from use values of recreation and water benefit on a site with good soil and a high visitor frequency, as is typical in the eastern part of Denmark. On a site in the west of the country, with poor growth conditions and a lower visitor frequency, the gain is still substantial, namely 5,581 € ha−1. These benefits though come at a cost of 3,375 and 6,206 € ha−1 from timber production, respectively. This means that the economic value of use values of recreation and water benefits outweighs the loss of timber on good soil conditions but not on poor soil conditions.

Keywords

Cost-benefit analysis Near-natural forestry Recreation score Tree growth Run-off Water Conversion 

Notes

Acknowledgments

Jette Bredahl Jacobsen and Thomas Lundhede would like to thank the Danish National Research Foundation for supporting the research at the Center for Macroecology, Evolution and Climate.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Dareskedar Workie Amsalu
    • 1
    Email author
  • Jette Bredahl Jacobsen
    • 1
  • Thomas Hedemark Lundhede
    • 1
  1. 1.University of CopenhagenCopenhagenDenmark

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