Consumer willingness to pay a price premium for standing-dead Alaska yellow-cedar

Alaska yellow-cedar has declined in Southeast Alaska over the past 100 years, resulting in half a million acres of dead or dying trees. The natural decay resistance of Alaska yellow-cedar means that many of these trees are still merchantable. However, the topography of Southeast Alaska is such that selectively harvesting Alaska yellow-cedar may often require helicopter-yarding. This paper tests two hypotheses. First, do consumers perceive salvage logging of standing-dead Alaska yellow-cedar as more environmentally friendly than harvesting living trees, and therefore, are they willing to pay a price premium for products manufactured from standing dead Alaska yellow-cedar? Second, should such a price premium exist, is it sufficient to justify the expense of helicopter-yarding? By using contingent valuation techniques, it is estimated that consumers are willing to pay $1,948 for a children's play structure made from Alaska yellow-cedar sawn from standing-dead trees, compared to $1,000 for an identical play structure sawn from living Alaska yellowcedar. This price premium is sufficient to justify the additional cost of helicopter-yarding. Alaska yellow-cedar (Chamaecyparis nootkatensis) has declined over the last 100 years in disparate stands throughout Southeast Alaska (Hennon et al. 1990). As yet, no definitive explanation has emerged for this increase inmortality, though current theories favor site, as opposed to biotic, causes (Hennon et al. 1997). This century-long decline has resulted in half a million acres of dead or dying Alaska yellow-cedar in Southeast Alaska (Hennon et al. 1990). The natural decay resistance of Alaska yellow-cedar is well documented (Grace and Yamamoto 1994). Because of this decay resistance, many of the standing-dead trees are still merchantable (Hennon et al. 2000). Alaska yellow-cedar (not including standing-dead) constitutes 9.7 percent Uneserved lands are defined as all lands except wilderness and national monument areas. of the growing stock on unreserved 1 national forest land in Southeast Alaska (Wilson 2002). Historically, Alaska yellow -cedar has been harvested by clear or partial cut, along with the more prevalent species western hemlock (Tsuga heterophylla) and Sitka spruce (Picea sitchensis). Harvest levels of all species from the Tongass National Forest in Southeast Alaska have declined precipitously in the last 10 years, from 472 million board feet (MMBF) in 1990 to 44 MMBF in 2001 (USDA Forest Serv. 2001), reducing the available volume of Alaska yellow-cedar. The closure of Southeast Alaska's two pulp mills, recession in the Japanese economy, and changes in forest policy have all contributed to the decline in harvest levels. Therefore, increasingly selective harvesting may be required to access Alaska yellow-cedar, given the low volumes being currently harvested conventionally. The limited infrastructure and rugged topography of Southeast Alaska mean that selective harvesting may often require helicopter-yarding. This paper tests two hypotheses. First, do consumers perceive salvage logging of standing-dead Alaska yellow-cedar as more environmentally friendly than harvesting living trees, and therefore,