Strategic criteria for compensating Natura areas Allan Sims, Allar Padari

Forest produces different goods In addition to management goods, a forest contains and helps to: –clear water –clear air –protect against erosion –protect shore and coast –old trees –habitats for birds animals rare plants –recreation areas –etc.

Compensation Management restrictions in Natura areas do not allow forest owners to get a profit as much as in unrestricted forest Compensation is necessary to support forest owners for producing public goods In addition to management goods, there exists Natura areas for people are willing to pay

Forest and its owner The forest owner gets compensation in managed forest through management profit for producing public goods In restricted forest the owner produce public goods by own costs, if there exists no compensation

COMPENSATION Current method

Method for compensation –The forest owner gets: 110 €/ha, if forest area is strictly protected or 60 €/ha for other protected forest area

Properties of the method Disadvantage Forest areas have different values, but the method does not consider that Advantage Simple to use

COMPENSATION Proposal

Method for compensation –Method should consider compensation value through forest value: Compensation value should be calculated as predictable profit from forest.

Profit calculation Profit depends on site productivity: –Forest site type, which shows potential tree species for the site –Site index, which shows wood productivity for the site

Profit calculation Forest productivity is calculated by long term forest growth simulation, where: –stand mean height, –stand mean diameter, –stand age, –stand volume and –density are used.

Profit calculation Forest growth is simulated with mathematical growth equations with one year steps In simulation for every year is considered thinning necessity and applied if „needed“. Growth is simulated until final felling

Profit calculation After simulation it is calculated sum of timber assortments from thinnings and final felling All assortments are divided into total growth period Thus, we can find potential forest productivity for the site

Profit calculation Income is calculated by multiplying assortments values with amount of assortments (e.g. RMK mean values) Outcome is expenses for felling and forest regeneration A result is mean profit per year, which is mean annual money damage for a forest owner

Profit calculation According to this method, money damage range is 0 – 220 €/ha. Thus, for some forest owners, who's forests are in fertile areas, the compensation differences are big. Proposed method is simple to use, because forest inventory data are available and it is on matter of calculation

Forest produces different goods In addition to management goods, a forest contains and helps to: –clear water –clear air –protect against erosion –protect shore and coast –old trees –habitats for birds animals rare plants –recreation areas –etc.

Summary Natura areas have values and there are willing to pay Forest owners should not have money damages for owning such forest Today exists the method to compensate, but it is inflexible and does not consider site productivity A compensation method should be more an owner frendly and it is quite simple to apply

Thank you for your attention!