Article
Assessing the Broader Value of Planted Forests to Inform Forest
Management Decisions
Richard T. Yao
1,
* , David J. Palmer
1
, Tim W. Payn
1
, Sally Strang
2
and Colin Maunder
3
Citation: Yao, R.T.; Palmer, D.J.;
Payn, T.W.; Strang, S.; Maunder, C.
Assessing the Broader Value of
Planted Forests to Inform Forest
Management Decisions. Forests 2021,
12, 662. https://doi.org/10.3390/
f12060662
Academic Editor: Luis Diaz-Balteiro
Received: 12 April 2021
Accepted: 14 May 2021
Published: 24 May 2021
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4.0/).
1
Scion, New Zealand Forest Research Institute Ltd., Te Papa Tipu Innovation Park, T¯ ıtokorangi
Drive (Formerly Long Mile Rd), Whakarewarewa, Rotorua 3010, New Zealand;
David.Palmer@scionresearch.com (D.J.P.); Tim.Payn@scionresearch.com (T.W.P.)
2
Hancock Forest Management, Braeside Avenue, Tokoroa 3491, New Zealand; sstrang@hnrg.com
3
Timberlands Limited, Te Papa Tipu Innovation Park, 99 Sala Street, Rotorua 3010, New Zealand;
Colin.Maunder@tll.co.nz
* Correspondence: richard.yao@scionresearch.com; Tel.: +64-27-2344-623
Abstract: This study highlights the importance of incorporating objectively quantified, non-market
environmental values (such as avoided erosion and carbon sequestration) into land use decision
making for sustainable forest management. A continuously developing approach that has facilitated
discussions between researchers, industries, and governments on the quantification of non-market
values is the ecosystem services (ES) framework. Using a spatial economic tool, called Forest
Investment Framework, this study is, to the best of our knowledge, the first assessment of the market
(timber) and non-market (carbon sequestration, avoided nitrogen leaching and avoided erosion) ES
values of the 1.75 million-hectare New Zealand planted forest estate. To collect the views of key
planted forest industry representatives on ES assessment/quantification, we interviewed 14 forest
managers representing 60% of the planted forest area. Results from the spatial economic analysis
indicated that the non-market ES values can be more than four times the timber profit nationally,
and up to 12 times higher in New Zealand’s most erosion-prone region. These estimated values are
indicative and should be treated with caution. From a sensitivity analysis, we found that different
discount rates significantly impact ES values, ratios, and distributions. Results from the interviews
indicated that ES quantification helped inform decision making by supporting license to operate,
while also signaling the development of a reward system for sustaining ES. Sixty-four percent of
survey respondents identified the importance of quantifying ES in ecological terms and describing
other non-market ES in spatial, qualitative, or binary forms. Overall, this study provided evidence of
how estimated non-market ES values compare with market values and highlighted the importance
of including them in decision making processes. Future cost benefit analyses that incorporate these
non-market monetary ES values would complement multi-criteria analysis that integrate additional
dimensions and allow decision makers to rank options based on their particular criteria.
Keywords: ecosystem services; planted forests; sustainable forest management; decision making;
forest certification; New Zealand; spatial economic tool; non-market values
1. Introduction
1.1. Global Context and Ecosystem Services Frameworks
Pressure from increasing global population and a changing climate is placing exces-
sive demands on the Earth’s resources. Unchecked, we are looking at an unsustainable
future where increasing production gives rise to environmental degradation and adverse
social impacts—we are breaching our planetary boundaries in many areas [1]. The 17
United Nations’ Sustainable Development Goals were established to stimulate global ac-
tion towards a sustainable future—and these herald the need for a more complex and
integrated response [2]. Multiple actions can contribute to multiple goals, none more so
than in Goal 15 “Life on Land”, where land use tensions between food and fiber production,
Forests 2021, 12, 662. https://doi.org/10.3390/f12060662 https://www.mdpi.com/journal/forests