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We explore the biophysical potential and economic attractiveness of black spruce (Picea mariana) regeneration in eastern Canada under the high greenhouse gas emission scenario (RCP 8.5) of the Intergovernmental Panel on Climate Change (IPCC). The study integrates net primary productivity and net ecosystem productivity estimates from three major global climate models (GCMs), growth and yield equations specific to black spruce, and economic analyses to determine spatially varying investment values of black spruce regeneration-both including and excluding carbon sequestration benefits. Net present value (NPV) was used to represent financial attractiveness. It was assumed that stands would not be harvested at volumes less than 80 m3·ha-1. A baseline case with the stumpage price set to $20 m-3, stand establishment cost $500 ha-1, and the discount rate 4%, was used with wide-ranging sensitivity analyses conducted around these assumptions. These values represent the wide range of choices and outcomes possible with black spruce regeneration investments. The results indicated a latitudinal gradient in economic attractiveness, with higher forest productivity and NPVs in the southern portion of the study area; however, black spruce regeneration was not economically attractive unless regeneration costs were very low (representing something closer to a natural regeneration type scenario) and/or carbon sequestration benefits of at least $5 ton-1 CO2 were realized. In general, the optimal harvest rotation age increased with increasing carbon price by approximately 9 to 18 years. Results of this study highlight the importance of future price and yield expectations and establishment costs in evaluating forest investments. [ABSTRACT FROM AUTHOR]

We present the idea of using potential infringements on annual allowable harvest targets as an approach to estimate threats from invasive species to the forest products sector. The approach uses present-day harvest levels as a reference level to estimate when and where the impact of a nonnative forest pest could become economically damaging. We use a generic model that simulates spread and damage by nonnative invasive species, basic harvest and forest growth through time. The concept is illustrated with a case study of a new nonnative invasive pest, Sirex noctilio Fabricius on pine resources in eastern Canada. Impacts of invasion on wood supply, in particular, the point at which present-day harvest levels are not attainable, were identified for 77 non-overlapping geographical regions that delimit the primary wood supply areas around large mills and wood processing facilities in eastern Canada. The results identify the minimum area of a pest outbreak that could trigger harvest shortages (approximately 12.5–14 M ha of pine forests in Ontario and Quebec). Beyond this level, the amount of host resource available for harvesting in any given year declines rapidly. The failure to sustain broad-scale harvest targets may be an attractive and intuitive indicator for policy makers and regulators interested in developing control and “slow-the-spread” programs for non-native forest pests. [Copyright &y& Elsevier]

This study presents a model that assesses the potential impact of a new alien insect species, Sirex noctilio Fabricius, on pine timber supply and harvest activities in eastern Canada. We integrate the spread of S. noctilio with a broad-scale growth and harvest allocation model. Projections of pine mortality range between 25 × 106 and 115 × 106 m3 over 20 years depending on S. noctilio spread and impact assumptions. Our model suggests Ontario could experience the highest, most immediate losses (78% of the potential losses across eastern Canada), with Quebec sustaining most of the rest of the losses over the next 20 years. Potential losses of $86 to $254 million per year are simulated after 20 years. The net present value of total harvest losses after 28 years of outbreak ranges between $0.7 to $2.1 billion. Adaptation policies decrease short-term losses by 46%–55% and delay larger harvest failures by 9–11 years. Without harvest adaptation, failures to maintain annual allowable cut levels may occur once the total area infested exceeds 15 × 106 ha. While better understanding and representing S. noctilio behaviour will involve a significant effort, there is a strong demand by policy makers for this kind of information. [ABSTRACT FROM AUTHOR]