Identifying Priority Areas for Forest Landscape Restoration to Protect Ridgelines and Hillsides: A Cost-Benefit Analysis

Abstract

This research presents a case study using cost-benefit analysis to identify priority areas for forest landscape restoration to protect the ridgelines and hillsides in a single county of the southern Appalachian region, which may be applicable to other communities with similar issues. Private and public benefits per dollar spent are estimated for 15 target restoration sites. The results of this study show the potential for increased benefits to the community from reforestation projects, but those benefits can vary greatly depending on a number of factors, including the area of the target reforestation site, the number of houses surrounding the target site, property values, and the proximity of houses to the site. Much of the private benefit accrues to households living close to the reforestation site while public benefits are mainly generated by indirect use values associated with the cleansing of air and water pollutants. Assuming the explicit cost of reforestation is paid by local governments, the sites generating the most public benefit per dollar could be considered high-priority reforestation sites based on equity. Alternatively, the sites with the highest private return per dollar could be viewed as high-priority sites if the payment system allows direct payment for reforestation of private land. The latter payment system could be implemented through a conservation easement program that restricts the development rights of private landowners and permits private donations to support the program. © 2012 Canadian Agricultural Economics Society.