Paola Ovando

Accounting for carbon in avoided degradation and reforestation programmes in Mediterranean forests

After reviewing the Kyoto Protocol rules for carbon sequestration accounting and the different carbon accounting methods proposed in the literature for forest management, for reforestation and, more recently, for avoided deforestation or degradation, we discuss possible carbon accounting rules for a post-Kyoto world. We then apply the results of this discussion to micro-applications in an Annex I country (Spain) and in a non-Annex I country (Tunisia), comparing avoided degradation with reforestation alternatives. In both areas we focus on Mediterranean forest, one of the worlds hotspots of biodiversity. We calculate CO 2 break-even prices, including in the analysis not only commercial values, but also, where these are relevant, existing subsidies. We also investigate social preferences for avoided degradation and reforestation using stated preference methods. Our results support the convenience of a change in focus for European Union subsidies from reforestation to avoided degradation.

Spatial Valuation of Forests’ Environmental Assets: An Application to Andalusian Silvopastoral Farms

We develop a model that estimates spatially allocated environmental asset values for the simultaneous provision of seven ecosystem services. We examine the effect of heterogeneous spatial and economic factors on asset figures, and identify potential forestry abandonment problems when continuing with forestry activity becomes unprofitable for the landowner. Our results show a relevant spatial variability according to forest species distribution and structure. We examine potential trade-offs among silvopastoral provisioning services, water, and carbon sequestration services. Results forecast the abandonment of forestry activity and quantify the significant impact of discount rates and prices on asset values. (JEL Q23, Q51)

Economics of Multiple Use Cork Oak Woodlands: Two Case Studies of Agroforestry Systems

Jerez (Spain) and Iteimia (Tunisia) cork oak agroforestry systems have close natural environments but they differ in land property rights, labour market and economic development contexts. These human induced differences result in similarities and dissimilarities on natural resources multiple use management. In this study we apply a simplified agroforestry accounting system (AAS) in two publicly owned cork oak agroforestry systems (COAS) for an average year, assuming steady state situation, without considering both environmental outputs (private and public) and government expenditures. The study objectives are to analyse the multiple Jerez and Iteimia agroforestry system activities intra-relationships taking into account intermediate outputs and to estimate a set of on-site cork oak agroforestry economic indicators related to single activity and the COAS as whole aggregated activities. In addition, in order to estimate separately the Iteimia open access grazing resource rent and the households self-employed labour cost, we propose a simulated pricing approach trade-off as an alternative to close substitute goods pricing method. The study results show that Jerez generates a commercial capital income loss and employees receive competitive wage rate, while undertakes a significant investment on agroforestry natural resources conservation and improvements. Opposite to Jerez, Iteimia actual management offers a positive capital income and a high household self-employed labour income on hectare basis, mainly from livestock and, in a less extent, other agroforestry land uses carried out in the local subsistence-economy. The noteworthy dependence of Iteimia households on cork oak multiple use, with a current negative impact on that resources conservation, make household subsistence-economy highly sensitive to nature conservationist policies and measures.

The Private Economy of Dehesas and Ranches: Case Studies

This chapter’s objective is to measure and analyze total private income and profitability for five case study privately-owned dehesas and oak woodland ranches. The Agroforestry Accounting System is applied at the farm scale. Results are estimated for individual forestry, game, livestock, crop, and service activities, and for activities aggregated as a whole. The case study application incorporates landowner consumption of private amenities as part of the total income from the dehesa or ranch, showing that these private amenities are the most important contributor to total income, while the contribution from livestock production is low or even negative. Hunting activities show low revenues. Dehesas with a high stocking rate are significantly supported by European Union livestock subsidies, while livestock production and other activities on California ranches are more sensitive to market conditions. Both in Spain and California, real profitability is competitive with alternative non-agricultural investments when amenity consumption and increases in land value are considered. These results are relevant to understanding current and future trends in landowner motivations for land and enterprise investment, and should be considered in conservation policy development.

Models of Oak Woodland Silvopastoral Management

Spanish dehesas and California ranchlands provide a diverse array of woodland-produced commodities, including forage, wood, acorns, habitat, game, and amenities. Several silvopastoral models exist for analyzing such production. An examination of management scenarios that include encouraging natural regeneration in dehesa is offered, and then compared with management where no extra inputs are provided and the tree overstory is gradually lost over time. A significant issue in Spain and California alike is sustaining production while making certain there is natural regeneration and recruitment of the oaks. A sensitivity analysis of public inputs, product prices, and discount factors is provided. Silvopastoral models for California woodlands illustrate the importance of incorporating actual landowner behavior in policy analysis to accurately represent the future trajectory of oak woodlands.