Economic determinants of private afforestation in the Republic of Ireland

This paper employs a panel regression analysis to quantify the relative importance of competing forestry and agricultural policy incentives in explaining trends in private afforestation in the Republic of Ireland. The paper focuses on economic factors that influence the level of forestry planting. It concludes that an increase in the level of up front payments to planters is the most cost-efficient way of increasing planting levels. The introduction of the Irish agri-environment programme, REPS, has contributed to a significant decline in the level of forestry planting and offset recent increases in the level of forestry grants and premia. Greater integration of forestry with REPS will be necessary if forestry planting targets are to be achieved.