Economic valuation of the environmental impact of logging residue recovery and nutrient compensation

In this paper, the environmental impact of logging residue recovery (LRR) and nutrient compensation (NC) in Sweden is analysed and evaluated economically. Logging residue recovery and recirculation of wood ash can generate local environmental benefits, such as reduced soil acidification and, primarily in southern Sweden, also improved nitrogen balance and reduced nutrient leaching from forest land. Recovery of residues leads to a slight increase in net emissions of carbon dioxide, compared with on site decomposition, but this increase is small compared with the net emissions of carbon dioxide from fossil fuel cycles. The impact of toxic compounds is estimated to be insignificant, as is that on biodiversity, when current guidelines for forestry management methods are followed. The total cost, including direct costs and environmental costs/benefits, of LRR and NC is estimated to be about 1.1, 3.3 and 4.6 US$/GJ in southern, central and northern Sweden, respectively. For comparison, the current direct cost of LRR, excluding NC, is, on average, about 4.0 US$/GJ in Sweden. Almost one-third of the Swedish forest fuel potential is estimated to be located in the south, but this potential varies from about 50 to over 100 PJ per year depending on the assumptions made. Thus, when local environmental benefits are also considered, the overall economic benefit derived from the utilisation of forest fuels could increase significantly in southern Sweden, where large quantities of logging residues are available.