Estimating the cost of the 1998 ice storm for woodlot owners in eastern Ontario: case studies of red pine and white cedar
This thesis investigates the economic effects of a natural disaster at enterprise and regional levels. An examination of the effect of the 1998 ice storm on red pine plantations and white cedar stands in eastern Ontario, based on alternative management regimes and response strategies, illustrates the broader issues currently discussed in forestry such as intensive silviculture and harvest practices. A partial budget capital budgeting analysis was used to estimate representative per hectare losses for red pine and white cedar. Total economic loss for red pine plantations is estimated to be between $12 and $13 million (1999 dollars). Total economic loss for white cedar stands is estimated to be $19 million. Stochastic simulations and sensitivity analyses were used to examine the robustness and report confidence intervals of the results. Implications and considerations for further research are discussed.