Restoring the shortleaf pine -bluestem grass ecosystem on the Ouachita National Forest: An economic evaluatio

Scope and method of study. The economic impact of augmenting the endangered red cockaded woodpecker population by restoring the shortleaf pine-bluestem grass ecosystem on the Ouachita National Forest is explored. An individual-tree growth and yield simulation program was developed from published equations for the purpose of comparing the timber harvest volumes available under the pine-bluestem management regime with those under traditional even-aged management. Data from historical timber sales on the Ouachita and Ozark National Forests were used to derive a valuation model for estimating the change in timber sale revenue resulting from the adoption of the pine-bluestem regime. The new management regime's effects upon the regional economy were estimated with input-output analysis. Finally, management costs were compared.;Findings and conclusions. In the portion of the Ouachita National Forest were the pine-bluestem management scenario is imposed, total timber harvest volume declines by 34 percent (compared with the volumes available under the traditional scenario) during the 100-year-long simulation period. The longer rotations associated with the pine-bluestem scenario change the product mix, with sawtimber comprising a greater proportion of total volume. This change to a higher-valued product mix is reflected by a decline in revenue from the affected area---in undiscounted terms---of only 25 percent. The present value of the harvest volume declines by 38 percent, primarily because a large proportion of the overall pine-bluestem harvests occurs late in the simulation period. The effect of the harvest volume on the regional economy is quite small. Assuming that total output would otherwise remain at its 1996 level, the adoption of the pine-bluestem regime will cause at most a 1.5 percent decline in regional economic activity. Forest products-related industrial sectors bear the brunt of the downturn in total output and value added. However, the sector combining transportation, services and government suffers the greatest decline in employment; although this sector accounts for only 15 percent of the decline in total output, it experiences 33 percent of the decline in employment. Finally, timber sale marking costs decline, while prescribed burning costs increase dramatically.