Valuing Diversity: A Systematic Review of the Financial Impacts of Biodiversity Conservation in Forests Managed Primarily for Wood Production

Abstract

Abstract Purpose of Review Integrating biodiversity conservation into wood production forests is critical for the provision of multiple ecosystem services. Yet, the impact conservation measures have on the profitability of forest management remains unclear. To address this, we conducted a global systematic review of academic literature that quantifies this effect in monetary terms. Recent Findings Implementing biodiversity conservation measures led to a reduction in profitability of forest operations in most of the 53 reviewed studies. How the profitability was affected in a concrete case depended, however, on the specific conservation measure applied, the forest biome, and the extent to which not only costs but also benefits of biodiversity conservation were monetised. When associated benefits were included, the effect became positive, with profitability, on average, considerably exceeding business-as-usual scenarios. Importantly, results depended strongly on underlying assumptions, particularly those concerning future uncertainties (such as climate change), which can change the valuation of biodiversity conservation and, with that, the overall assessment of profitability of forest operations considerably. Summary The review shows that conservation measures are associated, on average, with reduced profitability. However, this conclusion changes when not only costs but also benefits arising from biodiversity conservation are considered. Generally, the analysis of the literature underlines significant limitations of monetising the impact of biodiversity on the profitability of forestry operations related to complexity and uncertainties. It also calls for long-term, multidisciplinary research to enhance our understanding of the long-term impacts of biodiversity on the profitability of forest operations in times of global change.