An Analysis of Opportunity Costs with Wet-Weather Timber Hauling
Authors
Elizabeth M. Toman
Oregon State University, Corvallis, OR 97331-5706
Arne E. Skaugset
Oregon State University, Corvallis, OR 97331-5706
Glen E. Murphy
Oregon State University, Corvallis, OR 97331-5706
Abstract
Hauling logs during wet weather on low-volume roads can be a significant source of chronic turbidity and fine sediments that may be detrimental to aquatic organisms including salmonids in streams. As a result, regulations governing wet-weather hauling in the western timber-producing states and British Columbia have become increasingly restrictive. A potential result of the changes in regulations is limited access to an increasing proportion of commercial forestland during the winter months. The cost of restricted hauling and harvesting is potentially a resource that could be made available to improve aggregate road surfaces to minimize hauling restrictions during wet weather. The objective of this research was to investigate the opportunity costs associated with regulatory restrictions for hauling timber on a forest road during wet weather. The regulatory restrictions set forth in the California Forest Practice Rules of 2004 were applied to the MacDonald-Dunn Research Forest at Oregon State University. Historic rainfall data were applied randomly over twenty 20-year simulation periods and harvesting and hauling activities were restricted accordingly. The estimated costs and revenue for a 20-year simulation period without wet-weather restrictions were compared to three management scenarios for harvesting and hauling with wet-weather restrictions to determine the opportunity costs associated with wet-weather restrictions. Dependent on the management scenario, wet-weather restrictions decreased total net revenue for the McDonald-Dunn Research Forest from 1.7 to 18 percent. From this analysis, opportunity costs (and total net revenue decreases) were smallest with the management alternative that involved the overtime use of equipment during periods when hauling and harvesting activities were not restricted.
