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The Effects of Legal Limits and Recommendations on Timber Production: The Case of Finland

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Abstract:

One form of legislative regulation on private forestry does not allow a stand to be clearcut until it exceeds a certain average diameter or age. This study examines whether this type of regulation used in Finland, for example, constrains the optimal timber harvesting of various site types of Norway spruce and Scots pine cultures. Applying a Faustmann type of rotation model, well-established growth and yield data and economic time series, we find that the regulations constrain the optimal solution if the rate of interest exceeds 3% or 5% for Scots pine and Norway spruce stands, respectively. They turn out to be more binding, the lower the growth capacity of the stand. Especially for mature stands, the regulations may cause major economic losses. The regulations increase long-term sawlog production but decrease pulpwood production in comparison to the unconstrained optimum. Moreover, the regulations change the structure and reduce the level of costs, and may then reduce working opportunities in forestry. FOR. SCI. 47(4):443–454.

Keywords: Optimal rotation model; conifer cultures; environmental management; forest; forest legislation; forest management; forest resources; forestry; forestry research; forestry science; long-term timber supply; natural resource management; natural resources

Document Type: Miscellaneous

Affiliations: 1: Finnish Forest Research Institute, Unioninkatu 40A, Helsinki, Finland, FIN-00170, Phone: +358 9 857051; Fax: +358 9 85705717 kari.hyytiainen@metla.fi 2: Finnish Forest Research Institute, Unioninkatu 40A, Helsinki, Finland, FIN-00170, olli.tahvonen@metla.fi

Publication date: November 1, 2001

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