RT Journal Article
SR Electronic
T1 Shadow Pricing Ecosystem Services in Boreal Forests
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 101525-0088R1
DO 10.3368/le.103.2.101525-0088R1
A1 Wang, Shuyi
A1 Bostian, Moriah B.
A1 Lundgren, Tommy
YR 2026
UL http://le.uwpress.org/content/early/2026/09/24/le.103.2.101525-0088R1.abstract
AB Boreal forests jointly produce marketed goods and non-market ecosystem services, generating unavoidable trade-offs. We estimate shadow prices with the directional distance function (R. G. Chambers et al. 1996), endogenizing the directional vector and correcting for sampling variation via bootstrap methods. Using a county-by-year panel of Swedish forests, we find that shadow prices vary spatially and temporally yet remain generally low, implying modest opportunity costs for improving biodiversity and carbon sequestration relative to timber. Morishima elasticities further characterize substitution possibilities and least-cost paths to better environmental outcomes. The results indicate unexploited scope for conservation policy in boreal systems.