Costs and benefits of implementing continuous cover forestry in boreal peatlands

Abstract

Climate change and forestry activities heighten the risk of nutrient export from boreal peatland forests into watercourses, threatening water quality. Recognizing a nutrient-reducing practice is insufficient; evaluating costs and benefits is crucial to choose the best options. This study addresses this gap by applying a cost-benefit analysis to continuous cover forestry (CCF) as a strategy to mitigate phosphorus (P) export. The NutSpaFHy model estimated P exports under different management scenarios, comparing rotation forestry (RF) with CCF. Key variables measured included P reduction, net present value, revenue losses, and consumer surplus from recreation. Results showed CCF reduced P exports to 0.022 kg/ha/year, roughly one-third of RF levels on sites suitable for CCF. Recreational benefits, quantified at 6.55€/person/year/kg, were assessed using travel cost and contingent behavior valuation methods. Revenue impacts were evaluated using a size-structured forest optimization model, with CCF costs determined by revenue differentials between optimal management and immediate CCF conversion. High discount rates and mesic sites favor CCF as the optimal solution, indicating no additional costs from an immediate switch on mature stands. Analysis across discount rates (1%, 3%, and 5%) suggests CCF is a viable water protection option, meeting cost-benefit criteria with a benefit-cost ratio of 4.05.