The economic impact of forest management certification in Russia : costs and benefits on the corporate level in the north-west region

Forest Certification as a non-market tool has generally been thoroughly studied, but the impacts of Forest Certification have not been examined widely. Particularly very little research has been conducted regarding its economic impact. The present study examines the costs and benefits of forest mana...

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Detalles Bibliográficos
Autor principal: Golovina, Olga
Formato: H2
Lenguaje:Inglés
Otro
Publicado: SLU/Southern Swedish Forest Research Centre 2009
Materias:
Descripción
Sumario:Forest Certification as a non-market tool has generally been thoroughly studied, but the impacts of Forest Certification have not been examined widely. Particularly very little research has been conducted regarding its economic impact. The present study examines the costs and benefits of forest management certification via interviews with representatives of twelve forest industry companies operating in the north-west of the Russian Federation. A range of questions was compiled according to the classification scheme of costs and benefits based on literature and discussions with stakeholders before the main interview. The questionnaire included structured and open-ended questions. Five companies during the interview provided more comprehensive information about costs. The classification scheme of costs and benefits on the corporate level has been elaborated in the research and can be applied in future studies. The study presents comparative tables and diagrams of costs for the certification process, forest management improvement and overtime by companies for two periods (for the main assessment, including pre-assessment and annual audit). It was found that certification process costs per hectare are increased by a decrease of certified forest area. Improvement of forest management, which has recently been far below international forest management standards, is one of the most visible changes on the corporate level due to Forest Certification. Efforts to improve forest management in line with certification requirements cause complex measures and high costs for companies. The arrangements implemented by companies to comply with Forest Certification requirements were described. The most significant arrangements, which are absolutely new for Russian forest management, are providing loggers with safe equipment, inventory of rare and endangered species, state registration of HCVF, planning on an ecosystem basis and improvement of logging technology to minimise environmental impact. The author found that the structure of forest management improvement costs is similar in companies of the same size. Many of the required arrangements are still in the development stage, which implies that the costs may potentially increase. The primary motivation for companies to undergo Forest Certification is the struggle for buyers. The findings of the thesis broaden the field of research on the economic impact of Forest Certification and provide an overview of the formation of Forest Certification costs and benefits in businesses in the north-west of Russia.