Title: The economic impact of forest management certification in Russia
Abstract: Forest Certification as a non-market tool has generally been thoroughly studied, but the
impacts of Forest Certification have not been examined widely. Particularly very little research
has been conducted regarding its economic impact. The present study examines the
costs and benefits of forest management certification via interviews with representatives of
twelve forest industry companies operating in the north-west of the Russian Federation. A
range of questions was compiled according to the classification scheme of costs and benefits
based on literature and discussions with stakeholders before the main interview. The
questionnaire included structured and open-ended questions. Five companies during the
interview provided more comprehensive information about costs.
The classification scheme of costs and benefits on the corporate level has been elaborated
in the research and can be applied in future studies. The study presents comparative tables
and diagrams of costs for the certification process, forest management improvement and
overtime by companies for two periods (for the main assessment, including pre-assessment
and annual audit).
It was found that certification process costs per hectare are increased by a decrease of certified
forest area. Improvement of forest management, which has recently been far below
international forest management standards, is one of the most visible changes on the corporate
level due to Forest Certification. Efforts to improve forest management in line with
certification requirements cause complex measures and high costs for companies. The arrangements
implemented by companies to comply with Forest Certification requirements
were described. The most significant arrangements, which are absolutely new for Russian
forest management, are providing loggers with safe equipment, inventory of rare and endangered
species, state registration of HCVF, planning on an ecosystem basis and improvement
of logging technology to minimise environmental impact. The author found that
the structure of forest management improvement costs is similar in companies of the same
size. Many of the required arrangements are still in the development stage, which implies
that the costs may potentially increase.
The primary motivation for companies to undergo Forest Certification is the struggle for
buyers.
The findings of the thesis broaden the field of research on the economic impact of Forest
Certification and provide an overview of the formation of Forest Certification costs and
benefits in businesses in the north-west of Russia.
Publication Year: 2010
Publication Date: 2010-03-15
Language: en
Type: article
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