Balancing Nature and Wealth

Sammanfattning: The forest contributes multiple services, among others renewable materials, carbon sequestration, and recreational value. This thesis studied the effects on forestry stemming from the revised Land Use, Land Use Change, and Forestry regulation. The question is how reduced logging, which is in line with the new regulation, affects social welfare when incorporating the benefits of ecosystem services. This thesis carried out a socio-economic analysis of decreased logging by estimating the monetary value of lost income as well as carbon storage, recreation, water, and non-wood products. The results showed a long-term positive effect from decreased logging. This was mainly due to the tree's long-term carbon-storing capacity. However, the first twenty-five years show a negative social benefit, and to benefit from the positive effects trees must be set aside for a minimum of twenty years. The thesis looked at a short period of decreased logging and compared it to the long-term benefits. Continuing to set aside forests for nature conservation will motivate further costs which will alter the result of the analysis. Forestry is a big industry in Sweden, and this means that it affects much more than just national income. In conclusion, forestry is a sensitive subject with many different opinions and stakeholders. It is therefore important to explore all affected parties to come to a final conclusion. Time perspective is here an important question and motivator in decision-making regarding the environment. Both the question concerning how long we have until it’s ‘too late’ and how long we are willing to wait before an investment pays off.