Economic Evaluations of Tree Improvement for Planted Forests: A Systematic Review
Keywords:
economics, benefit-cost analysis, tree improvement, improved regeneration material, genetic gainAbstract
This paper reviews the literature on the economic evaluations of tree improvement for planted forests and
investigates whether or not using improved reforestation stock from tree improvement programs is a good
investment. The main findings from systematic web-based searches show that (1) tree improvement is an
effective tool to improve forest productivity and to realize financial returns; (2) economic gains from wood
production with selection for breeding traits (e.g., high-volume yield or height growth) are the main reasons
forest managers adopt new biotechnologies in tree improvement; (3) cost-benefit analysis is the primary empirical
approach for estimating the economic effects of tree improvement for planted forests; and (4) there is very little
literature on estimating the non-market benefits (e.g., improved watershed protection, amenities, or conservation
of genetic diversity) that tree improvement brings, using non-market valuation techniques. The recent introduction
of new biotechnologies in tree improvement, such as genomics-assisted tree breeding (GATB), can achieve
genetic gains in selected traits more quickly and effectively than traditional breeding approaches, providing
economic incentives for forest managers to use better quality stock for planted forests. Therefore, we suggest
that future research should (1) consider the additional benefit, extra research and development costs, and time
saved by applying new biotechnologies in tree improvement (e.g., GATB) in the cost-benefit analysis; (2) investigate
the trade-offs between timber volume and wood quality traits and assess the economic effects of new
biotechnologies in tree improvement along different stages of the forestry supply chain; and (3) explicitly account
for the non-market trait values for the targeted breeding traits (e.g., drought/pest resistance) so that tree
improvement programs can contribute to sustainable production systems. Economic analyses along these lines
could help policy makers, forest managers, and forest company owners better understand the trade-offs of
alternative breeding objectives and make economically efficient investment decisions for planted forests.
References
Ahtikoski, A. and Pulkkinen, P. 2003 Cost-benefit analysis of using orchard or stand seed in Scots pine sowing, the case of northern Finland. New Forest 26, 247–262.
Ahtikoski, A., Ojansuu, R., Haapanen, M., Hynynen, J. and Kärkkäinen, K. 2012 Financial performance of using genetically improved regeneration material of Scots pine (Pinus sylvestris L.) in Finland. New Forest 43, 335-348.
Alzamora, R. and Apiolaza, L. 2010. A hedonic approach to value Pinus radiata log traits for appearance-grade lumber production. Forest Science 56, 281-289.
Costanza, R., D’Arge, R., De Groot, R., Farber, S., Grasso, M., Hannon, B., Limburg, K., Naeem, S., O’Neill, R. V., Paruelo, J., Raskin, R. G., Sutton P. and van den Belt, M. 1997. The value of the world’s ecosystem services and natural capital. Nature 387, 253-260.
El-Dien, O.G., Ratcliffe, B., Klápště, J., Porth, I., Chen, C., El-Kassaby .,Y.A. 2016 Implementation of the realized genomic relationship matrix to open-pollinated white spruce family testing for disentangling additive from non-additive genetic effects. Genes, Genomes, Genetics 6, 743-753.
Evans, J. 2009 The multiple roles of planted forests. In Planted forests: Uses, Impacts and Sustainability. J. Evans (ed.). Food and Agriculture Organization of the United Nations, pp. 61-90.
El-Kassaby, Y., Klápště, J. and Guy, R. 2012 Breeding without breeding: selection using the genomic best linear unbiased predictor method (GBLUP). New Forests 43, 631-637.
Food and Agriculture Organization of the United Nations (FAO), 2015 Global Forest Resources Assessment 2015 [online]. Rome, Italy. Available from http://www.uncclearn.org/sites/default/files/inventory/a-i4793e.pdf
FAO, 2016 Definitions-Planted Forests [online]. Rome, Italy. Available from http://www.fao.org/forestry/plantedforests/67504/en/
Frampton, J. 1996 The tree improvement process, limbs and needles 23, 10-14.
Grattapaglia, D., and Resende, M.D.V. 2011. Genomic selection in forest tree breeding. Tree Genetics & Genomes 7, 241-255.
Holmes, T., Adamowicz, W. and Carlsson, F. 2014 Chapter 5: Choice experiments. In A Primer on the Economic Valuation of the Environment. P. Champ, T. Brown and K. Boyle (eds). Kluwer, pp. 133-186.
Isik, F. 2014 Genomic selection in forest tree breeding: the concept and an outlook to the future. New Forests 45, 379-401.
Ivković, M., Wu, H.X., McRae, T. A. and Powell, M.B. 2006a Developing breeding objectives for radiata pine structural wood production. I. Bioeconomic model and economic weights. Canadian Journal of Forest Research 36, 2920-2931.
Ivković, M., Wu, H.X., McRae, T.A. and Matheson, A.C. 2006b Developing breeding objectives for production of radiata pine structural wood. II. Sensitivity analyses. Canadian Journal of Forest Research 84, 2933–2943.
Ivković, M., Wu, H.X. and Kumar, S. 2010 Bio-economic modelling as a method for determining economic weights. Silvae Genetica 59, 77-90.
Jansson, G. Hansen, J.K., Haapannen, M., Kvaalen, H. and Steffenrem, A. 2017 The genetic and economic gains from forest tree breeding programs in Scandinavia and Finland. Scandinavian Journal of Forest Research 32, 273-286.
Johansson, P.O. and Löfgren, K. 1985 The Economics of Forestry and Natural Resources. Basil Blackwell, 292 pp.
Jayawickrama, K.J.S. 2001 Genetic parameter estimates for radiata pine in New Zealand and New South Wales: a synthesis of results. Silvae Genetica 50, 45–53.
Kimberley, M.O., Moore, J.R. and Dungey, H.S. 2015 Quantification of realised genetic gain in radiate pine and its implication into growth and yield modelling systems. Canadian Journal of Forest Research 45, 1676–1687.
Kretschmann, D.E. and Bendtsen, B.A. 1992 Ultimate tensile stress and modulus of elasticity of fast-grown plantation loblolly pine lumber. Wood and Fiber Science 24, 189-203.
Lee, S. and Watt G. 2012. Improved Sitka spruce planting stock; seedlings from a clonal seed orchard or cuttings from full-sibling families? Scottish Forestry 66, 18-25.
Natural Resources Canada. 2016 Forest Carbon [online]. Available from https://www.nrcan.gc.ca/forests/climate-change/forest-carbon/13085
McKeand, S.E., Abt, R.C., Allen, H.L., Li, B. and Catts, G.P. 2006 What are the best loblolly pine genotypes worth to landowners? Journal of Forestry 7, 352-358.
McKenney, D., van Vuuren, W. and Fox, G.C. 1989 An economic comparison of alternative tree improvement strategies-A simulation approach. Canadian Journal of Agricultural Economics 37, 211-232.
McKenney, D., Glenn, F. and van Vuuren, W. 1992 An economic comparison of black spruce and jack pine tree improvement. Forest Ecology and Management 50, 85-101.
McKenney, D. 2000 What’s the economics of intensive silviculture? Forestry Chronicle 76, 275-281.
McKenney, D. 2001 Thinking about the economics of genetic resource management for Canadian forestry. Forestry Chronicle 77, 105-109.
Natural Resource Canada. 2016 Forest Carbon [online]. Available from https://www.nrcan.gc.ca/forests/climate-change/forest-carbon/13085
Olesen I., Gjerde, B. and Groen, A. 1999. Methodology for deriving non-market trait values in animal breeding goals for sustainable production systems. Proceedings International Workshop EU Concerted Action on Genetic Improvement of Functional Traits in cattle: Breeding goals and selection schemes. Available from http://library.wur.nl/WebQuery/wurpubs/62588
Olesen I., Gjerde, B. and Groen, A. 2000. Definition of animal breeding goals for sustainable production systems. Journal of Animal Science 78, 570-582.
Palmer, H.E., Newton., A.C., Doyle., C.J., Thomson, S. and Stewart, L.E.D. 1998 An economic evaluation of alternative genetic improvement strategies for farm woodland trees. Forestry 71, 333-347.
Park, W-S., Weng, Y. and Mansfield, S.D. 2012 Genetic effects on wood quality traits of plantation-grown white spruce (Picea glauca) and their relationships with growth. Tree Genetics & Genomes 8, 303-311.
Paquette, A. and Messier, C. 2010 The role of plantations in managing the world’s forests in the Anthropocene.
Frontiers in Ecology and the Environment 8, 27-34.
Payn, T., Carnus, J-M., Freer-Smith, P., Kimberley, M., Kollert, W., Liu, S., Orazio, C., Rodriguez, L., Silva, L.N. and Wingfield, M.J. 2015 Changes in planted forests and future global implications. Forest Ecology and Management 352, 57-67.
Pearse, P.H. 1990 Introduction to Forestry Economics. University of British Columbia Press, 226 pp.
Petrinovic, J.F., Gélinas, N. and Beaulieu, J. 2009 Benefits of using genetically improved white spruce in Quebec: The forest landowner’s viewpoint. Forestry Chronicle 85, 571-582.
Poland, J.A. and Rife, T.W. 2012 Genotyping-by-sequencing for plant breeding and genetics. Plant Genome 5, 90-102.
Porth, I., Bull, G., Ahmed, S., El-Kassaby, Y.A. and Boyland, M. 2015 Forest genomics research and development in Canada: priorities for developing an economic framework. Forestry Chronicle 91, 60-70.
Porth, I., Bull, G., Cool, J., Gélinas, N. and Griess, V.C. 2016 An economic assessment of genomics research and development initiative projects in forestry. CAB Reviews 11, 1-10.
Ratcliffe, B., El-Dien, O.G., Klápště, J., Porth, I., Chen, C., Jaquish, B.and El-Kassaby, Y.A. 2015 A comparison of genomic selection models across time in interior spruce (Picea engelmannii x glauca) using unordered SNP imputation methods Heredity 115, 547-555.
Ratcliffe, B. El-Dien, O.G., Cappa, E.P., Porth, I., Klápste, J., Chen, C. and El-Kassaby, Y.A. 2017 Single-step BLUP with varying genotyping effort in open-pollinated Picea glauca. G3: Genes, Genomes, Genetics 7, 935-942.
Schreiber, S.G. and Thomas B.R. 2017 Forest industry investment in tree improvement – a wise business decision or a bottomless pit? Answers from a new tree improvement valuation model for Alberta, Canada. The Forestry Chronicle 93, 38-43.
Sedjo, R.A., 1999 Potential for Carbon Forest Plantations in Marginal Timber Forests: The Case of Patagonia, Argentina. RFF Discussion Paper 99-27, Resources for the Future, Washington DC, 20 pp.
Sedjo, R.A. 2001 Biotechnology in forestry: considering the costs and benefits. Resources 145, 10-12.
Sedjo, R.A. 2003 Biotech and planted trees: some economic and regulatory issues. AgBioForum 6, 113-119.
Thomas, B.R. and Richardson, J. 2006 Poplar genomics to poplar production: Bridging the gap for best use of our resources and knowledge. Report prepared for Genome Canada [online]. Available from http://www.poplar.ca/upload/documents/g2ppaper.pdf.
Turner, J.A., Dhakal, B., Yao, R., Barnardl, T. and Maunder, C. 2011. Non-timber Values from Planted Forests: Recreation in Whakarewarewa Forest. New Zealand Journal of Forestry Science 55, 24-31.
Vossler, C.A, Doyon, M. and Rondeau, D. 2012 Truth in consequentiality: theory and field evidence on discrete choice experiments. American Economic Journal: Microeconomics 4, 145-171.
White, T., Davis, J., Gezan, S., Hulcr, J., Jokela, E., Kirst, M., Martin, T.A., Peter, G., Powell, G. and Smith, J. 2014 Breeding for value in a changing world: past achievements and future prospects. New Forests 45, 301-309.
Wu, H.X., Yang, J.L., Mcrae, T.A., Li, L. and Powell, M.B. 2004 Genetic relationship between breeding objective and early selection criterion traits in Australia radiata pine population. CSIRO FFP Technical Report 1402 and STBA Technical Report TR04-01.
Wu, H.X., Eldridge, K.G., Matheson, A.C., Powell, M.B., McRae, T.A., Butcher, T.B., and Johnson, I.G. 2007 Achievements in forest tree improvement in Australia and New Zealand 8. Successful introduction and breeding of radiata pine in Australia. Australian Forestry 70, 215-225.
Wu, Y.Q., Weng, Y.H., Hennigar, C., Fullarton, M.S. and Lantz, V. 2015 Benefit-cost analysis of a white spruce clonal seed orchard in New Brunswick, Canada. New Forests 46, 141-156.
Xu, Y. and Crouch, J.H. 2008 Marker-assisted selection in plant breeding: from publications to practice. Crop Science 48, 391–407.
Yanchuk, A. and Allard, G. 2009 Tree Improvement Programs for Forest Health – Can They Keep Pace with Climate Changes? [online]. Available from ftp://ftp.fao.org/docrep/fao/011/i0670e/i0670e00.pdf
Yao, R. and Kaval, P. 2010 Valuing biodiversity enhancement in New Zealand. International Journal of Ecological Economics and Statistics 16, 26–42.
Yao, R. 2012 The Non-Market Value of Biodiversity Enhancement in New Zealand’s Planted Forests. Ph.D. Dissertation. University of Waikato, Hamilton, New Zealand.
Available from http://hdl.handle.net/10289/6399
Yaron, G. 2001 Forest, plantation crops or small-scale agriculture? An economic analysis of alternative land use options in the mount Cameroon area. Journal of Environmental Planning and Management 44, 85-108.
Zobel, B.J. and Talbert, B.J. 1984 Applied Tree Improvement. Wiley, 448pp.
Downloads
Published
Issue
Section
License
Manuscripts published in the journal are open access and copyrighted according to the Creative Commons Attribution 4.0 International (CC BY 4.0) which requires attribution to the author, but can be readily shared and adapted. BioProducts Business allows the author(s) to retain publishing rights without restrictions.
