Detecting collusion in timber auctions : an application to Romania

Romania was one of the first transition countries in Europe to introduce auctions for allocating standing timber (stumpage) in public forests. In comparison with the former system in the country-administrative allocation at set prices-timber auctions offer several potential advantages: greater revenue generation for the government, a higher probability that tracts will be allocated to the firms that value them most highly, and stronger incentives for technological change within industry and efficiency gains in the public sector. Competition is the key to realizing these advantages. Unfortunately, collusion among bidders often limits competition in timber auctions, including in well-established market economies such as the United States. The result is that tracts sell below their fair market value, which undermines the advantages of auctions. This paper examines the Romanian auction system, with a focus on the use of econometric methods to detect collusion. It begins by describing the historical development of the system and the principal steps in the auction process. It then discusses the qualitative impacts of various economic and institutional factors, including collusion, on winning bids in different regions of the country. This discussion draws on information from a combination of sources, including unstructured interviews conducted with government officials and company representatives during 2003. Next, the paper summarizes key findings from the broader research literature on auctions, with an emphasis on empirical studies that have developed econometric methods for detecting collusion. It then presents an application of such methods to timber auction data from two forest directorates in Romania, Neamt and Suceava. This application confirms that data from Romanian timber auctions can be used to determine the likelihood of collusion, and it suggests that collusion reduced winning bids in Suceava in 2002 and perhaps also in Neamt. The paper concludes with a discussion of actions that the government can take to reduce the incidence of collusion and minimize its impact on auction outcomes.Forestry,Wildlife Resources,Markets and Market Access,Access to Markets,Technology Industry

A property rights-based analysis of the illegal logging for fuelwood in Kosovo

The increased demand for fuelwood may have the side-effect of unsustainable use of forest resource. The case of Kosovo fuelwood production is of a peculiar relevance to studying the drivers of the unsustainable patterns of forest biomass use in a post-war and poor economic context. The domestic market demand for fuelwood in Kosovo is estimated at more than 1.5 hm3, while the legal supply, including imports, is slightly higher than 0.3 hm3. Illegal logging for satisfying Kosovo population fuelwood needs is therefore widespread. The annual illegal fuelwood harvesting represents a market of up to 21.6 million euro and is done mostly by well organised groups of individuals, with market-oriented behaviour, acting rather in State than in private forests. After identifying the drivers of illegal logging for fuelwood, the paper provides an analysis of fuelwood extraction in relation with property rights distribution, structured along two lines: a) which was the evolution of the management and exclusion rights over the forest resource during the latest decades; b) which are the current enforcement mechanisms of the property rights and how are they performing. The paper describes a decades-long history of mismatching economic property rights arrangements. Thus, the dispute between the central agency and municipalities in performing exclusion rights on timber extraction definitely weakened the Kosovo system of law enforcement. Currently, the enforcement mechanism proved to be unhelpful in controlling illegal logging. As result, most of the Kosovo fuelwood production is based on an de facto open-access regime.info:eu-repo/semantics/publishedVersio

A stakeholders' analysis of potential sustainable tourism development strategies in Piatra Craiului National Park

Tourism is a major management issue for many protected areas as thepresence and actions of visitors can present serious problems for biodiversity conservation.Therefore, tourism has to be managed carefully and site managers must assess and balance the costs and benefits of tourism in protected areas. It is also important to find ways for local people and communities to benefit from tourism linked to conservation.Using a stakeholder analysis, the article assesses benefits and threats oftourism development in Piatra Craiului National Park. Through a range of interviews with local stakeholders, the article identifies the main challenges that tourism brings to the protected area: ensuring the effective participation of communities in tourism development, effectively managing tourism to prevent it from undermining conservation goals, encouraging all stakeholders, particularly the private sector, to support the conservation of biodiversity and channelling a portion of tourism revenues towards supporting conservation. The ecotourism, as a responsible travel to natural areas that conserves the environment and improves welfare of local people, is consideredthe best solution for a sustainable tourism development in Piatra CraiuluiNational Park.</p

Understanding private forest owners’ conceptualisation of forest management : Evidence from a survey in seven European countries

Acknowledgements This paper is written as a part of Cost Action FP1201, Forest Land Ownership Changes in Europe: Significance for Management and Policy (FACESMAP). Laura Bouriaud thanks the Romanian Agency UEFISCDI for helping finance this research through the project PN-II-RU-TE-2014-4-0017. Philippe Deuffic and Elodie Brahic thank Centre National de la Propriete Forestiere (CNPF). The authors are also grateful to the people involved in data collection in the seven European countries. The authors thank the three anonymous reviewers for their useful comments that helped to improve the article.Peer reviewedPostprin

Governance of private forests in Eastern and Central Europe: An analysis of forest harvesting and management rights

A property rights-based approach is proposed in the paper to underlinethe common characteristics of the forest property rights specificationin ten ECE countries, the specific patterns governing the harvesting of timber in private forestry and the role of the forest management planning in determining the content of the property rights. The analysis deals with the private forests of the individuals (non industrial ownership) from ten countries, covering 7.3 million ha and producing yearly some 25 million timber. The study shows that the forest management rights in private forests belong to the State and that the withdrawal rights on timber, yet recognized in the forest management plans, are in reality strongly restricted from aneconomic viewpoint. The forest management planning is the key instrument of the current forest governance system, based on top-down, hierarchically imposed and enforced set of compulsory rules on timber harvesting. With few exceptions, the forest owners’ have little influence in the forest planning and harvesting. The rational and State-lead approach of the private forest management has serious implications not only on the economic content of the property rights, but also on the learning and adaptive capacity of private forestry to cope with current challenges such the climate change, the increased industry needs for wood as raw material, or the marketingof innovative non wood forest products and services. The study highlights that understanding and comparing the regime of the forest ownership require a special analysis of the economic rights attached to each forest attribute; and that the evolution towards more participatory decision-making in the local forest governance can not be accurately assessed in ECE region without a proper understanding of the forest management planning process

Assessing forest availability for wood supply in Europe

The quantification of forests available for wood supply (FAWS) is essential for decision-making with regard to the maintenance and enhancement of forest resources and their contribution to the global carbon cycle. The provision of harmonized forest statistics is necessary for the development of forest associated policies and to support decision-making. Based on the National Forest Inventory (NFI) data from 13 European countries, we quantify and compare the areas and aboveground dry biomass (AGB) of FAWS and forest not available for wood supply (FNAWS) according to national and reference definitions by determining the restrictions and associated thresholds considered at country level to classify forests as FAWS or FNAWS. FAWS represent between 75 and 95 % of forest area and AGB for most of the countries in this study. Economic restrictions are the main factor limiting the availability of forests for wood supply, accounting for 67 % of the total FNAWS area and 56 % of the total FNAWS AGB, followed by environmental restrictions. Profitability, slope and accessibility as economic restrictions, and protected areas as environmental restrictions are the factors most frequently considered to distinguish between FAWS and FNAWS. With respect to the area of FNAWS associated with each type of restriction, an overlap among the restrictions of 13.7 % was identified. For most countries, the differences in the FNAWS areas and AGB estimates between national and reference definitions ranged from 0 to 5 %. These results highlight the applicability and reliability of a FAWS reference definition for most of the European countries studied, thereby facilitating a consistent approach to assess forests available for supply for the purpose of international reportinginfo:eu-repo/semantics/publishedVersio

What influences European private forest owners’ affinity for subsidies?

We acknowledge the funding from the whole team from FACESMAP FPS COST Action FP1201. Also VJ was supported by the Czech National Agency for Agricultural Research (NAZV) under the contract QJ1530032.Peer reviewedPostprin

Two decades of forest-related legislation changes in European countries analysed from a property rights perspective

In the last two decades, attention on forests and ownership rights has increased in different domains of international policy, particularly in relation to achieving the global sustainable development goals. This paper looks at the changes in forest-specific legislation applicable to regular productive forests, across 28 European countries. We compare the legal framework applicable in the mid-1990s with that applicable in 2015, using the Property Rights Index in Forestry (PRIF) to measure changes across time and space. The paper shows that forest owners in most western European countries already had high decision-making power in the mid-1990s, following deregulation trends from the 1980s; and for the next two decades, distribution of rights remained largely stable. For these countries, the content and direction of changes indicate that the main pressure on forest-focused legislation comes from environmental discourses (e.g. biodiversity and climate change policies). In contrast, former socialist countries in the mid-1990s gave lower decision-making powers to forest owners than in any of the Western Europe countries; over the next 20 years these show remarkable changes in management, exclusion and withdrawal rights. As a result of these changes, there is no longer a clear line between western and former socialist countries with respect to the national governance systems used to address private forest ownership. Nevertheless, with the exception of Baltic countries which have moved towards the western forest governance system, most of the former socialist countries still maintain a state-centred approach in private forest management. Overall, most of the changes we identified in the last two decades across Europe were recorded in the categories of management rights and exclusion rights. These changes reflect the general trend in European forest policies to expand and reinforce the landowners' individual rights, while preserving minimal rights for other categories of forest users; and to promote the use of financial instruments when targeting policy goals related to the environmental discourse

The number of tree species on Earth

One of the most fundamental questions in ecology is how many species inhabit the Earth. However, due to massive logistical and financial challenges and taxonomic difficulties connected to the species concept definition, the global numbers of species, including those of important and well-studied life forms such as trees, still remain largely unknown. Here, based on global groundsourced data, we estimate the total tree species richness at global, continental, and biome levels. Our results indicate that there are 73,000 tree species globally, among which ∼9,000 tree species are yet to be discovered. Roughly 40% of undiscovered tree species are in South America. Moreover, almost one-third of all tree species to be discovered may be rare, with very low populations and limited spatial distribution (likely in remote tropical lowlands and mountains). These findings highlight the vulnerability of global forest biodiversity to anthropogenic changes in land use and climate, which disproportionately threaten rare species and thus, global tree richness