Public preferences for uncertain regeneration cuttings: a contingent valuation experiment involving Finnish private forests

In Nordic countries, where general public enjoys access to private lands, private forests are intensively used for recreation. Private forest owners, however, do not have to take this use into account in their planning nor are they regulated to inform the public about cuttings. This uncertainty in forest amenities was analyzed in a contingent valuation (CV) survey in Finland. Respondents’ willingness-to-pay (WTP) for a hypothetical land use policy regulating regeneration cuttings was measured with dichotomous choice questions. WTP was higher when forest management was described as involving uncertainty, compared to a clearly defined management scenario. This indicates that respondents are risk-averse and believe they will gain welfare if information on forest management plans is available. Risk perceptions of cuttings were explored with so-called fractile method, a new technique in CV. Fractile method measures respondents’ expectations on minimum and maximum cuttings in order to describe the probability density function of expectations. The results revealed some difficulties and inconsistencies in answering the risk perception questions.