A1 Journal article (refereed)
Economics of mixed-species forestry with ecosystem services (2019)

Tahvonen, O., Rämö, J., & Mönkkönen, M. (2019). Economics of mixed-species forestry with ecosystem services. Canadian Journal of Forest Research, 49(10), 1219-1232. https://doi.org/10.1139/cjfr-2018-0514

JYU authors or editors

Publication details

All authors or editors: Tahvonen, Olli; Rämö, Janne; Mönkkönen, Mikko

Journal or series: Canadian Journal of Forest Research

ISSN: 0045-5067

eISSN: 1208-6037

Publication year: 2019

Volume: 49

Issue number: 10

Pages range: 1219-1232

Publisher: Canadian Science Publishing

Publication country: Canada

Publication language: English

DOI: https://doi.org/10.1139/cjfr-2018-0514

Publication open access: Not open

Publication channel open access:


The Faustmann-Hartman setup is widely established for specifying the economics of forest values besides timber, but it is criticized as restrictive for capturing diversity values. We show that extending the model to cover diversity attributes, i.e., mixed species and internal heterogeneity within species, is not enough to overcome these restrictions. Additionally, it is necessary to extend forest harvesting regimes to cover thinning, continuous cover forestry, and the management of commercially useless trees. Restrictions in the Faustmann-Hartman setup are first shown analytically with optimized thinning but without tree size structures. The empirical significance of these findings is shown by a model that includes four tree species, tree size structures, an extended set of forest management activities, a detailed description of harvesting costs, and a measure for stand diversity as a key factor behind ecosystem services. We show how an optimal harvesting regime, net revenues, wood output, and stand diversity depend on model flexibility, economic parameters, and the valuation of ecosystem services. In a setup allowing flexible management regimes, the costs of reaching a specified level of ecosystem services are negligible compared with those of the Faustmann-Hartman specification.

Keywords: forestry; silviculture; thinning (forestry); timber harvesting; selection system (forest cultivation); forest policy; ecosystem services; biodiversity; optimisation

Free keywords: Hartman model; Faustmann model; forest amenities; continuous cover forestry; forest policy; dynamic mixed-integer optimization; optimal harvesting

Contributing organizations

Ministry reporting: Yes

Reporting Year: 2019

JUFO rating: 3

Last updated on 2021-09-06 at 08:43