Abstract
This study implements the economic valuations of converting to broad-leaved tree species after the harvest of coniferous species at maturity and clarifies the conditions for such conversion. Taking Wakayama Prefecture in Japan as a case study, we calculated the net present values (NPVs) with infinite multirotations for forest owners. Specifically, we compared the NPVs of the Ubame Oak (Quercus phillyraeoides) forest (UOF) under selective cutting for Kishu Bincho charcoal and the Sugi (Cryptomeria japonica) or Hinoki (Chamaecyparis obtusa) planted forests (SHF) under clearcutting for industrial woods. The results showed that the NPV of the UOF was positive, when Bincho charcoal producers’price was maintained at the current level in the prefecture. The NPV of the SHF was relatively lower despite the availability of government subsidies. Finally, we suggest that forest owners should convert to UOF after harvesting SHF, considering the advantages in terms of NPV. However, this conversion to UOF should be gradual while maintaining Kishu Bincho charcoal’s brand strength, price level, supply capability, target forest area and market growth. Additionally, other incomes are required while training craftspeople to convert their products to Bincho charcoal given that significant growth is not expected in the white charcoal market in Japan.
