Using a Marginal Value Approach to Integrate Ecological and Economic Objectives across the Minnesota Landscape

Forest management situations are intrinsically challenging due to the nature of being an interconnected and multi-faceted problem. Integrating ecological, social, and economic objectives is one of the biggest hurdles for forest planners. Often, decisions made with the interest of producing a specific ecosystem service may affect the production of other forest ecosystem services. We present a forest management scheduling model that involves multiple ownerships and addresses the joint production of two ecosystem services: timber and upland hardwood old forest. We use a marginal value approach to evaluate old forest. We analyze the impacts of considering different management options, shapes and levels of marginal value functions for old forest, and potential benefits of rewarding the major forest land ownership groups to produce old forest. Results show the downward-sloping marginal value function as a compromise strategy and the benefits of applying it over approaches using either fixed values or targets for addressing ecosystem services. A decomposition model was useful for recognizing important stand-level detail. A broad landscape and multiple ownership approach helped identify interconnections between forest cover types and between landowner groups.