FRI - Department of Forest Economics

The Department of Economics was established in 1965, and it is building upon the legacy of its renowned former researchers. It is now cultivating the traditional fields of forest economics in its broader sense, as well as the current issues of forest policy. Above these, multidisciplinary research projects constitute a great part of the Department’s research.  

Forest economics deals with the financial and economic effects of the multiple functions of forests and forestry. Primarily, it includes the financial consequences of forest operations and the evaluation of the economic effects. It is a century long traditional field of analysis to calculate the profitability and the employment potential of forestry. It is always based on field surveys, the results of which is organized into economic models.

Financial modelling allows scenario analysis of changes with potentially great impacts such as forest conversions to other types of forest, management restrictions for nature conservation or other purposes, market processes and climate change. Modelling in many cases employ GIS technology.

Special focus is put on private forestry, which is analysed with regards to ownership structure, management organization structure, advisory systems, and financial conditions of operation. There is a number of deep-analyses in this field, which provide evaluation of situation and analysis of long-term processes, as well as outlooks to complex problem areas such as abandoned forests and forestations in arrears.