Rational forest productivity decline

A whole forest optimisation model was employed to examine economic behaviour as it relates to long term, forest productivity decline in the boreal forests of Ontario, Canada. Our productivity investment model(PIM) incorporated a choice between productivity decline as representedby a drop in forest Site Class, and a fee to 'maintain' site productivity. Sensitivity analysis was used to determine the point at which these fees exceeded the value of the differential in timber volume between upper and lower site classes. By varying discount rate, 'productivity investment frontiers' were constructed, which highlight the effects of the magnitude in productivity decline, maintenance fees, and harvest flow constraints upon the occurrence and schedule of productivity declines. In presenting this simple approach to exploring the effects of economic choice upon forest productivity decline, the phenomena of 'natural capital divestment' within forestry is described.