Jack Ruitenbeek: Environmental Economic Valuation in a Second Best World: Pursuing Sustainability during the Mountain Pine Beetle Infestations in British Columbia, Canada

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Jack Ruitenbeek

Environmental Economic Valuation in a Second Best World: Pursuing Sustainability during the Mountain Pine Beetle Infestations in British Columbia, Canada

10 pp.
3.07 EUR
(October 2009)

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The forest industry in British Columbia has estimated a potential loss of US$43 billion to the economy because of the infestation of the pine forest by the mountain pine beetle. Recent warming trends and milder winters have increased two risks: fire from system drying, and insect infestation by the pine beetle. The government reacted to the infestation by allowing the harvesting of more timber. This leads to an increasing revenue for the forest industry and royalties for the government in the short term but predicted heavy losses in the long run. The industry also tries to readjust to the changes by logging smaller trees and trying to find markets for the wood from dead trees. Ruitenbeek addresses sustainability issues in times of climate change where changes in temperature will effect forest management: accordingly, increasing harvest now is more like harvesting a non-renewable resource than a renewable. This will lead to huge areas of clear cuts. Moreover, the question remains open about how to use the areas afterwards (agriculture instead of forestry?). It is not possible to maintain the given stock of resources (strong sustainability), it seems also relatively clear that also the long term social and economic welfare may suffer (weak sustainability). Any solution will involve a choice among a number of undesirable alternatives. In the next paragraph Ruitenbeek outlines the scale of economic impacts. The problem is in this case that any solution in model theory draws on marginal changes, well defined assumptions and conditions. The beetle infections are having large impacts and nobody really knows what to expect in the future. Nevertheless, a calculation is being made on the values of different ecosystem services from the forest industry (timber, carbon sequestration, recreational values and commercial fisheries). Furthermore, Ruitenbeek argues that a transformation in the economy is occurring and he discusses two policy approaches. There is a need for adaptive management in the forest sector (also some experimental approaches) and land use planning for forestry may not be the first choice in a changing environment.

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