EFFECTS OF ENVIRONMENTAL BENEFITS FROM AFFORESTATION ON OPTIMAL HARVESTING AGE IN A MEDITERRANEAN MARIGINAL AREA

This study compares the effect of environmental benefits and subsidies under EU afforestation measures on optimal rotation for new multi-purpose plantation forests in Calabria, a Mediterranean marginal area in the South of Italy. The environmental benefits considered are groundwater recharge, soil erosion reduction and carbon sequestration for three types of marginal land such as arable, pasture and non-cultivated land. Results show, if environmental benefits are considered in the economic valuation of forest plantations the optimal rotation age is increased. Environmental benefits can contribute up to 278 €/ha and year for selected tree species. Furthermore, results show that, in terms of groundwater recharge and soil erosion reduction, afforestation of pasture and non-cultivated land, results in a cost to society that can vary between 35 €/ha and 168 €/ha. Afforestation of arable land provides a benefit that can vary between 61 €/ha and 115 €/ha.