Measuring the social performance of forest management

Abstract

AbstractForests produce several types of benefits to both forest landowners and society. The social benefit of private forestry is equal to private benefit plus positive externalities minus negative externalities. This study developed alternative metrics for the evaluation of the social benefit of forest management. Forest management was assessed in terms of five criteria: economic, socio-cultural, environmental and ecological performance and the resilience of the forest ecosystem. Each criterion was described with three numerical indicators. Alternative performance indices were calculated from the indicator values using methods developed for multi-criteria decision making. It was concluded that indices based on the multiplicative Cobb–Douglas utility function might be the most recommendable when forestry should produce a balanced combination of different ecosystem services. When the indices were used to compare alternative silvicultural systems in terms of their social performance, continuous cover management was ranked better than even-aged management. The performance of even-aged management improved when it aimed at increasing the share of mixed stands and broadleaf species. Maximizing net present value (NPV) with a 1% discount rate led to better social performance than maximizing NPV with a 4% discount rate.