Jeffrey D. Kline

Defining an Economics Research Program to Describe and Evaluate Ecosystem Services

Balancing society’s multiple and sometimes competing objectives regarding forests calls for information describing the direct and indirect benefits resulting from forest policy and management, whether to address wildfire, loss of open space, unmanaged recreation, ecosystem restoration, or other objectives. The USDA Forest Service recently has proposed the concept of ecosystem services as a framework for (1) describing the many benefits provided by public and private forests, (2), evaluating the effects of policy and management decisions involving public and private forest lands, and (3) advocating the use of economic and market-based incentives to protect private forest lands from development. The concept extends traditional economic theory regarding multiple forest benefits and the use of economic incentives to enhance their provision, by emphasizing ecosystems as an organizing structure for benefits. Although the emphasis on ecosystems is new, challenges in evaluating ecosystem services are similar to those long faced by economists tasked with evaluating forest benefits: (1) defining a typology of ecosystem services, (2) describing and measuring ecosystem services units or outputs, and (3) describing and measuring ecosystem services per unit of values or social weights. Progress within the Forest Service in applying the ecosystem services concept to forest policy and management will depend on knowing what information will suffice, working across disciplines, deciding on appropriate analytical frameworks, defining the appropriate role of economic and market-based incentives, and adequately funding economics research.

Evaluating forest land development effects on private forestry in eastern Oregon.

Research suggests that forest land development can reduce the productivity of remaining forest land because private forest owners reduce their investments in forest management. We developed empirical models describing forest stocking, thinning, harvest, and postharvest tree planting in eastern Oregon, as functions of stand and site characteristics, ownership, and building densities. The models are based on USDA Forest Service Forest Inventory and Analysis data gathered in eastern Oregon in 1987 and 1998, and data describing building densities gathered by the Oregon Department of Forestry from aerial photographs taken over the same period. We used the models to examine the potential effects of population growth and development, as described by increasing building densities, on the likelihood that private forest owners maintain forest stocking, precommercially thin, harvest, and plant trees following harvest. Empirical results suggest that population growth and development have had no measurable effect on these activities in eastern Oregon during the period examined. Any development effects on private forest management and investment so far are likely to be fairly localized.